McData Narrows Loss

The storage networking company hews its second-quarter loss, but revenue is lower than last year.
Author:
Publish date:

McData's

(MCDTA)

revenue slipped by about 10% in the second quarter although the storage switch maker posted a smaller net loss than it did in the year-ago quarter.

McData, which has

agreed to be purchased by

Brocade

(BRCD)

, posted a GAAP loss of $20.5 million, or 13 cents a share, compared with a loss of $25.5 million, or 18 cents a share, in 2005.

Net revenue was $150.1 million, down from $165.3 million.

Excluding the cost of stock options, the writedown of a product line and other items, the company earned a penny a share. On the same basis, analysts polled by Thomson First Call were looking for a 3-cent profit on sales of $170.6 million.

In recent after-hours trading on Instinet shares were off 17 cents, or 4.2% to $3.90.

Brocade will pay $713 million in stock for McData, the companies announced earlier this month.