Data storage infrastructure provider Brocade Communications Systems reported a sharply higher quarterly profit on Nov. 21, largely due to increased growth in its storage area network division, which led the way to a 43.5 percent rise in revenue over a year ago.
The company, based in San Jose, Calif., reported financial results for its fourth quarter of fiscal year 2006, which ended Oct. 28.
Revenues for Q4 06 were a record $208.8 million, compared to $145.5 million a year ago, CEO Michael Klayko said in a conference call.
Stock shares rose 3.4 percent in value over 2005 levels, ascending to $8.78 in after-hours trading after closing the regular Nasdaq session 40 cents higher, or 4.9 percent, at $8.49.
Brocade, which recorded nearly three-quarters of its sales to three customers—IBM, EMC and Hewlett Packard—reported fiscal fourth-quarter net income of $20.0 million, or 7 cents per share, compared with net income of $1.1 million (nil per share) for the year-earlier quarter.
Revenues for Q4 06 increased 11 percent from $188.9 million reported in Q3 2006 and climbed 43.5 percent from $145.5 million reported in Q4 2005.
For fiscal year 2006, revenues were $750.6 million, an increase of 31 percent from the $574.1 million reported in fiscal year 2005.
Three and a half years ago, the company was struggling, reporting a loss of $146 million for the second quarter of 2003. Things have improved steadily since that time.
"Our fourth quarter was outstanding and a very strong finish to fiscal 2006," Klayko said in the conference call. "Throughout the year we have continued to execute well and I am proud of our team.
He continued: "Overall, we gained share across our product family and solidified our leadership position. The success in our storage area network business has helped us to drive returns this year, while at the same time allowing us to invest for future growth," Klayko said.
The company listed the following highlights of the last quarter:
- A definitive agreement to acquire McData: The acquisition is subject to obtaining approval from both Brocade and McData stockholders, regulatory approvals and certain other closing conditions, a company spokesperson said.
- Introduced more than 20 new and enhanced products and services: These products cross over Brocades SAN solutions, Brocades file management software solutions that address the emerging FAN (file area network) market segment and Brocades professional services business.
- Announced successful completion of the latest FICON qualification for the Brocade SilkWorm 48000 and Brocade SilkWorm 4100.