McData Exceeds Expectations

The storage hardware maker posts fiscal fourth-quarter EPS of 3 cents, 2 cents ahead of consensus.
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After the bell Thursday,



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.