SAN Maker McData Reports Down Quarter
McData officials said on Monday that the company lost $50 million in the third fiscal quarter of 2003. In addition, revenue declined.McData Corp. officials said on Monday that the company lost $50 million and its revenue dipped to $94.7 million for the third fiscal quarter of 2003, compared to a profit of $9.1 million on $107 in the second quarter. In comparison, the in Broomfield, Colo.-based storage switch maker reported earnings of $2.1 million on $80.9 million in the year-ago period. Pricing pressure from storage newcomer Cisco Systems Inc., long sales cycles and tough pricing negotiations with EMC Corp. were the primary causes, Chief Executive Officer and President John Kelley explained.
However, "end user demand for our products and services remains solid. In spite of competitive pressures, we continue to see strong customer preference," he said.