Brocade's Profit Surges - TheStreet

Brocade's Profit Surges

Results edge the Wall Street consensus by a penny.
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Updated from Aug. 18

Brocade

(BRCD)

were slightly lower Thursday after the company delivered a sharp rise in profit and met sales expectations for its fiscal third quarter, the company reported after the bell.

Brocade's shares were recently down 9 cents to $4.86.

The San Jose, Calif.-based enterprise storage vendor said after the bell Wednesday that third-quarter profit rose to $17 million, or 6 cents a share, from net income of $1.9 million, or 1 cent a share, a year ago.

Excluding special charges, net income amounted to $15.2 million, or 6 cents a share, a penny ahead of the consensus estimate.

The earnings upside doesn't come as a complete surprise, however. On Aug. 13, Brocade

issued a business update saying it expected to earn a pro forma profit of 5 cents to 6 cents a share in the quarter, above what was then the consensus estimate of 4 cents.

Third-quarter net revenue of $150 million was even with analyst expectations, reflecting growth of 12% from year-ago levels and 3% from the prior quarter.

In a post-close conference call, Brocade forecast revenue of $150 million to $156 million with pro forma earnings of 6 cents to 7 cents a share. That compares with the consensus estimate for sales of $156 million and EPS of 6 cents.