McData's Loss Widens

Also, the company's revenue drops 7% from the year-ago quarter.
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McData's

(MCDTA)

loss widened in the third quarter as revenue decreased by more than 7% year over year.

McData, whose

acquisition by rival

Brocade

(BRCD)

is pending, lost $26.3 million, or 17 cents a share, compared with a loss of $7.5 million, or 5 cents a share last year.

Revenue was off 7.4% to $156.1 million from $168.5 million a year ago.

Excluding items such as stock-based compensation and acquisition-related charges, the maker of hardware related to storage networks, lost $4.3 million, or 3 cents a share, compared with a profit of $3.6 million, or 2 cents a share in the same quarter last year.

On that basis, analysts polled by Thomson First Call were looking for a profit of 1 cent a share on revenue of $157.18 million.

Wall Street's reaction to the disappointing quarter was muted. In recent after-hours trading shares were off 4 cents to $6.23.