Brocade Communications Systems, Inc. (NASDAQ:BRCD) Reports Mixed 1Q14 Results


Dallas, Texas 02/19/2014 (FINANCIALSTRENDS) – Brocade Communications Systems, Inc. (NASDAQ:BRCD) reported revenues for its first quarter operations which ended on 25th January on 13th February. Its first quarter revenue of $565 million, which represented a one percent increase over 4QFY13. Earnings per share for the quarter were 24 cents as against the 21 cents reported in same quarter, last fiscal.

Business Drivers

The kick start to a strong first quarter was accomplished on the back of pent up demand for Brocade Communications Systems, Inc. (NASDAQ:BRCD) flag ship Storage Area Network products, while the IP networking revenue continued to dip on a sequential as well as a quarter on quarter compare. To offset this disruption in cash flow, the tech firm has concentrated on increasing its foot print in the “Ethernet Fabric” space. This space grew by an nearly unprecedented 6 percent during the first quarter, on the back of both the traditional enterprise space buyers as well as new tech search engine providers leveraged the solutions to upscale and upgrade themselves to newer storage technologies.

Demand For SAN Drives Growth

Lloyd Carney – Chief Executive Officer of Brocade Communications Systems, Inc. (NASDAQ:BRCD) while congratulation his team for the razor sharp execution of their previously stated plan of returning to the days of 60 percent free cash flow has been quoted to have said that, “Our performance was driven by the strength of our Storage Area Networking (SAN) business as customers continue to adopt Gen 5 Fibre Channel networks for their highly virtualized data centres and high-performance storage environments, including Solid State Disks (SSDs). While the overall IP Networking business declined year-over-year, we achieved our outlook for the quarter. This is a transformational year for Brocade and we remain committed to our mission to be the network provider of choice to the world’s data centres.”

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