Brocade: Fiscal 1Q10 Financial Results

Brocade Communications Systems, Inc. reported financial results for its first fiscal quarter ended January 30, 2010.

Brocade’s quarterly revenues increased 25 percent year-over-year to $539.5 million.

“Brocade’s Q1 performance exceeded consensus non-GAAP EPS expectations for the 18th consecutive quarter thanks to the balance and diversity of our business model, our highly variable cost structure and our ability to execute,” said Michael Klayko, CEO of Brocade.

Klayko continued: “At the same time, Q1 highlights the work ahead in building our Ethernet business to the levels we expect. Going forward, Brocade plans to reenergize our Ethernet business strategy, which targets opening hundreds of new direct enterprise Ethernet accounts each quarter. As one of two end-to-end networking companies worldwide, we believe Brocade is well-positioned and are optimistic about our ability to take advantage of the expected worldwide growth of networking spending in 2010 and beyond.”

Financial Highlights

• Q1 revenue was $539.5 million, increasing 3.4% sequentially and 25% year-over-year.
• Q1 GAAP EPS (diluted) was $0.11, increasing 57% sequentially and from a loss in Q1 2009.
• Q1 non-GAAP EPS (diluted) was $0.19, increasing 27% sequentially and year-over-year.
• Q1 non-GAAP operating margin was 26.0% versus 22.7% in Q4 and 26.1% in Q1 2009.
• Q1 effective GAAP tax rate was 2.4%; non-GAAP effective tax-rate was 22.0%.
• Q1 Adj. EBITDA was $154.7 million, up from $130.0 million in Q4 and $136.7 million in Q1 2009.
• Q1 total Storage Area Networking (SAN) port shipments were approximately 1.2 million.