McData Posts 1Q Profit
The storage specialist reported its third consecutive positive quarter today, earning $5.3M on $103.2M in revenue.In a sign of the mildly improving enterprise storage economy, McData Corp. reported its third consecutive positive quarter today, earning $5.3 million on $103.2 million in revenue, officials said. McDatas numbers are slightly down from the prior quarter, but are vastly better than the $17.1 million loss on $64.5 million in revenue suffered a year ago. "Our results this quarter clearly demonstrate that we continue to capitalize on the growing market opportunities in this sector and that end-user customers rely on us as the storage networking specialist," CEO and President John Kelley said. "Building a director-class product takes more than simply a box with more ports," he said, referring to rival San Jose, Calif.-based Brocade Communications Systems Inc.s 64-port SilkWorm 12000 switch.
McData also faces a threat from SAN newcomer Cisco Systems Inc., and Kelley fears that Cisco will sell directly to customers, he said in a recent interview. However, Cisco officials, also in San Jose, denied having that plan.