Dallas, Texas 08/15/2013 (Financialstrend) – Brocade Communications Systems, Inc. (NASDAQ:BRCD) reported third-quarter outcomes above analysts’ estimations and stated that the demand for its storage goods was bettering.
Network equipment manufacturer expects income from its SAN (Storage Area Networking) biz to surge 1-4% during the existing quarterly period.
The company’s scrip increased by 18% in after-market trading.
In a declaration, Chief Executive Lloyd Carney stated, “We are witnessing a rebound taking place in the broader storage market and think that the recovery will fortify for the remainder of this fiscal year.”
The company formulates hardware and software for linking corporate storage mechanisms as well as servers.
The firm’s storage area networks biz accounted for almost 61% of its income last year.
“The storage market carries on being gentler than it was during 2012, but we are getting optimistic indications from our associates that end-user demand is bettering,” Lloyd added up.
Brocade Communications Systems, Inc.’s SAN income declined 2% during the third quarterly period, but overall income, which descended 3% to $536.6 million, still hit analysts’ estimations.
Net income surged three times to $118.7 million as against $43.3 million during the last year.
Market analysts on average had anticipated earnings of 12 cents per share on income of $519 million, as per Thomson Reuters I/B/E/S.
The firm recognized a gain of $76.8 million during the quarterly period associated to a lawsuit settlement with A10 Networks. Brocade stated previously this year that it had bagged a patent infringement charge against A10.
The company bought back around 18 million shares in the quarterly period, worth over $100 million.
Brocade Communications Systems Surged 16%