Big Cost Savings Expected

By Chris Preimesberger  |  Posted 2006-08-08 Print this article Print

Big cost savings expected A Brocade spokesperson said the purchase, which is expected to close next quarter, would help it gain scale and accelerate growth, leading to yearly cost savings of $100 million by the fourth quarter.
Brocade has forecast third-quarter net revenue of $188 million to $189 million and net earnings per share of 8 cents to 9 cents.
McData reported that it expects Q2 earnings per share to range from a loss of 2 cents per share to break even on revenue of $150 million to $152 million—far below the companys previous estimate of $170 million to $180 million. In its most recent financials, McData blamed weak sales in North America as well as at its unit that handles Europe and the Middle East. It also cited lower demand for some of its top-of-the-line products. Brocade has been in the news recently due to an ongoing SEC investigation involving fraud charges. The SEC last month filed civil fraud charges against the former CEO, Gregory Reyes, and two other officials of the company. Reyes and his colleagues face criminal fraud charges that carry a maximum penalty of 20 years in prison and $5 million in fines. Reyes attorney, Richard Marmaro, has said his client is innocent. Check out eWEEK.coms for the latest news, reviews and analysis on enterprise and small business storage hardware and software.

Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

Submit a Comment

Loading Comments...
Manage your Newsletters: Login   Register My Newsletters

Rocket Fuel