Updated from 5:02 p.m. EDT
Storage-switch maker Brocade
reported second-quarter results in line with the company's reduced guidance. But the company's estimates for third-quarter earnings were below estimates and the revenue forecast was as much as 8% below analysts' expectations.
In after-hours trading shares were off 13 cents, or nearly 3%, to $4.30, after gaining 22 cents in the regular session.
The San Jose, Calif.-based company on Thursday reported net income of $19.4 million, or 7 cents a share. Revenue was $144.8 million, down about 1% year over year.
Excluding items, the company's profit was $19.1 million, or 7 cents a share. Analysts polled by Thomson First Call were expecting a 7-cent profit on sales of $144.65 million.
In February, the company said that it would post sales of $155 million to $161 million, but pulled back the estimate in early May.
Last year's results reflect the company's estimates of how much the numbers will be reduced
when the company restates four years of earnings as it faces a joint investigation by the
Securities and Exchange Commission
and the Department of Justice.
When adjusted, earnings in the comparable period a year ago will range from $1.1 million to $2.2 million, or breakeven to a penny a share.
The adjustment is related to the company's admitted incorrect handling of a number of stock-based compensation issues -- a problem that has arisen before.
Why both the SEC and Department of Justice are now investigating the matter is not known, and CFO Tony Canova refused to give more details during a conference call following the earnings announcement. Asked what stage the investigation has reached, Canova replied: "The document collection phase."
Looking forward to the third quarter, Brocade expects to earn a pro forma profit of 5 cents or 6 cents, on revenue ranging from $140 million to $145 million. Analysts polled by Thomson First Call had projected revenue of $152.1 million and earnings of 8 cents a share.