Brocade Communications Systems Inc. Earnings: Beats Expectations
Brocade Communications Systems Inc. (NASDAQ:BRCD) reported net income above Wall Street’s expectations for the first quarter. Brocade Communications Systems is a supplier of networking equipment, including end-to-end Internet Protocol based Ethernet networking solutions and storage area networking solutions for service providers such as telecommunication firms and cable operators.
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Brocade Communications Systems Earnings Cheat Sheet for the First Quarter
Results: Net income for Brocade Communications Systems Inc. rose to $58.6 million (12 cents per share) vs. $26.9 million (5 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter.
Revenue: Rose 2.7% to $560.6 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Brocade Communications Systems Inc. reported adjusted net income of 20 cents per share. By that measure, the company beat the mean estimate of 10 cents per share. It beat the average revenue estimate of $542.4 million.
Quoting Management: “Q1 was a great quarter for Brocade — achieving record revenue, expanding gross margins, and increasing profits as we continued to see strong momentum across many areas of our business,” said Michael Klayko, CEO of Brocade. “It is clear that we are executing well on our Playbook strategy of using ‘innovation as a differentiator’ which fueled strength in both our Storage and Service Provider businesses. We look forward to delivering on our next wave of innovation focused on the Campus LAN market and to transition these customers to our new portfolio of solutions.”
Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the second quarter has moved up from 8 cents a share to 9 cents over the last ninety days. The average estimate hasn’t changed from 37 cents per share for the fiscal year.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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