McData Exceeds Expectations

The storage hardware maker posts fiscal fourth-quarter EPS of 3 cents, 2 cents ahead of consensus.
Author:
Publish date:

After the bell Thursday,

McData

(MCDTA)

delivered upside in earnings and forecast EPS slightly above expectations for its current quarter.

After the bell, the stock was recently up 27 cents, or 3.5%, to $8.06. In regular trading, McData closed up 16 cents, or 2.1%, to $7.79.

For the fourth quarter of fiscal year 2004, which ended Jan. 31, the storage hardware maker posted sales of $114 million, up 8% from last year's levels and in line with the Wall Street consensus estimate of $113.5 million.

The company saw a quarterly net loss of $7.5 million, or 7 cents a share.

Excluding special charges, its net income totaled $3.3 million, or 3 cents a share, two pennies above expectations. The pro forma result excludes charges for the amortization of deferred compensation and purchased intangible assets, a loss on McData's investment in Aarohi, and a charge to cover the costs of a 9% payroll reduction announced in January.

For guidance, McData said it "is comfortable" with the range of First Call Wall Street estimates of $108 million to $115 million, with a 2 cent pro forma profit for the quarter ending in April.

The First Call consensus estimate for the April quarter is for sales of $111.6 million and a penny in profit.

McData also said it expects a per-share loss of 8 cents according to generally accepted accounting principles for the April quarter.