McData Reports Positive 4Q Earnings

The storage switch maker earned revenue of $105.5 million in the quarter, with a profit of $8.6 million.

Storage switch maker McData Corp. reported positive earnings today for its fourth quarter of 2002.

McData earned revenue of $105.5 million in the quarter, with a profit of $8.6 million, compared to $80.9 million in revenue and a $ 2.3 million profit in the third quarter, officials of the Broomfield, Colo., vendor said.

McData didnt do as well for the year, with a loss of $10 million, on $328.3 million in revenue, compared to a loss of just $8.7 million on $344.4 million in revenue in 2001.

"This past quarters performance demonstrates our ability to meet our customers needs and to lead the migration to an intelligent information infrastructure," said CEO and president John Kelley, in a statement.

Hopkinton, Mass.-based EMC Corp. as McDatas largest customer, represented 54 percent of total revenue in the latest quarter. IBM, of Armonk, N.Y., represented 26 percent.

In the quarter, McData certified its newest switches, the Intrepid 6140 and the Sphereon 4500 for EMC and IBM, as well as for Hitachi Ltd., of Tokyo, Japan; Hewlett Packard Co., of Palo Alto, Calif.; and Storage Technology (StorageTek) Corp., of Louisville, Colo., officials said.

McData is locked in a market share battle with rival Brocade Communications Systems Inc., while storage newcomer Cisco Systems Inc. threatens both companies.

McData and Brocade are also fighting a patent lawsuit, in which McData lost a motion for preliminary injunction in December. The patents in dispute concern technology for changing switch configurations without rebooting. The firms are expected to settle out-of-court, industry watchers say.

McData anticipates revenue between $92 million and $97 million for the first quarter of 2003, officials said.

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