SAN FRANCISCO -- Shares of Brocade Communications Systems (BRCD) charged higher after the company unexpectedly called for rosier third-quarter earnings than it had forecast.
The maker of devices for networked data storage expects earnings to reach 11 cents to 12 cents a share, excluding items such as stock-based compensation, vs. the wider range of 10 cents to 12 cents it previously set. This compares with analysts' average earnings forecast of 11 cents a share.
The company also lowered its third-quarter revenue forecast to between $325 million and $327 million, from the range of $330 million to $340 million it announced in May. That misses the consensus estimate of $336.83 million.
Shares were recently trading up 50 cents, or more than 8%, to $6.69.
Tech investors have plowed into the market after
posted strong fourth-quarter earnings and raised its first-quarter guidance.
Brocade's announcement also follows Tuesday's
conviction of Brocade's former chief executive, Gregory Reyes, on 10 counts of securities fraud for backdating stock option grants.