Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nasdaq  >  Brocade Communications Systems, Inc.    BRCD

Delayed Quote. Delayed  - 08/31 10:00:00 pm
8.98 USD   -2.29%
08/29 BROCADE COMMUNI : Reports fiscal q3 2016 results
08/26 BROCADE COMMUNI : Helps customers build agile networks for digital b..
08/25 BROCADE : Reports Fiscal Q3 2016 Results
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 
The feature you requested does not exist. However, we suggest the following feature:

Brocade Communications : REPORTS FISCAL Q3 2016 RESULTS

share with twitter share with LinkedIn share with facebook
share via e-mail
0
08/29/2016 | 04:02pm CEST

Release date- 26082016 - SAN JOSE, CA - Brocade (NASDAQ: BRCD) today reported financial results for its third fiscal quarter ended July 30, 2016.

These results include approximately two months of financial results from Ruckus Wireless, which was acquired on May 27, 2016. Brocade reported third quarter revenue of $591 million, up 7% year-over-year and up 13% quarter-over-quarter. The Company reported GAAP diluted earnings per share (EPS) of $0.02, down from$0.21 in Q3 2015 and from $0.11 in Q2 2016. The year-over-year and sequential declines in GAAP EPS were primarily the result of acquisition-related items, including the lower gross margin associated with acquired inventory and deferred revenue, acquisition and integration costs, and increases in the amortization of intangible assets and stock-based compensation.

These items were partially offset by the favorable resolution of a tax audit. Non-GAAP diluted EPS was$0.21 for Q3 2016, down 21% year-over-year and down 2% quarter-over-quarter. The year-over-year decline in non-GAAP EPS was primarily due to the acquisition-related purchase accounting adjustments, unfavorable revenue mix, and higher operating expenses.

'Against the backdrop of a mixed macro environment, we posted solid results, with total revenue at the high end of our outlook range,' said Lloyd Carney, CEO of Brocade. 'During Q3, we also continued the momentum of new product innovations across our portfolio, building a solid foundation for business growth and expansion of our addressable markets. Furthermore, with the successful completion of our acquisition of Ruckus Wireless in the quarter, we are pleased to welcome this talented and committed team to the Brocade family. Our combined strengths open up new opportunities and distinguish Brocade as a pure-play networking company for the digital transformation era.'

Highlights:

On May 27, 2016, Brocade completed the acquisition of Ruckus Wireless, Inc., enhancing Brocade's position as a pure-play networking company with solutions spanning from the heart of the data center to the wireless network edge.

SAN product revenue of $282 million was down 9% year-over-year. The year-over-year decline was primarily the result of lower Fibre Channel director sales, which decreased 23%, partially offset by fixed-configuration switch sales which increased 3%. Sequentially, SAN product revenue decreased 5%, with directors declining 20%, partially offset by fixed-configuration and embedded switch sales growing 7% and 8%, respectively. The year-over-year and sequential declines in our SAN director revenue were primarily the result of a longer time to closure for many large deals, while the improvement in our switch revenue was primarily due to pull-through demand from all-flash array deployments. Overall, the decline in our SAN product revenue is consistent with commentary from many of our OEM partners regarding the weaker storage demand environment.

During the quarter, Brocade launched the Brocade X6 Director, the industry's first Gen 6 Fibre Channel director for mission-critical storage connectivity. This highly reliable, high-performance, low-latency solution is specifically designed for all-flash data centers. It extends the company's leadership in offering the industry's most innovative and widely deployed Fibre Channel storage networking solutions.

Board Declares Dividend

The Brocade Board of Directors has declared a regular third fiscal quarter cash dividend of $0.055 per share of the Company's common stock. The dividend payment will be made on October 3, 2016, to stockholders of record at the close of market on September 9, 2016.

Management believes that the non-GAAP financial measures used in this press release allow management to gain a better understanding of Brocade's comparative operating performance, both from period to period and relative to its competitors. These non-GAAP financial measures also help with the determination of Brocade's baseline performance before gains, losses or charges that are considered by management to be outside of ongoing operating results. Accordingly, management uses these non-GAAP financial measures for planning and forecasting of future periods and in making decisions regarding operations and the allocation of resources.

Management believes these non-GAAP financial measures, when read in conjunction with Brocade's GAAP financials, provide useful information to investors by offering:

the ability to make more meaningful period-to-period comparisons of Brocade's ongoing operating results;

the ability to make more meaningful comparisons of Brocade's operating performance relative to its competitors;

the ability to better identify trends in Brocade's underlying business and to perform related trend analyses and

a better understanding of how management plans and measures Brocade's underlying business.

In determining non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, non-GAAP operating income, non-GAAP tax rate, non-GAAP net income and non-GAAP EPS, management excludes certain gains or losses and benefits or costs that are the result of infrequent events or events that arise outside the ordinary course of Brocade's continuing operations. Management believes that it is appropriate to evaluate Brocade's operating performance by excluding those items that are not indicative of ongoing operating results or limit comparability.

Such items include, but are not limited to: (i) impact to cost of revenues from purchase accounting adjustments to inventory; (ii) acquisition and integration costs; (iii) restructuring and other related benefits and (iv) effects of certain intercompany transactions on the tax provision.

Management also excludes the following non-cash charges in determining these non-GAAP financial measures: (i) stock-based compensation expense; (ii) amortization of purchased intangible assets and (iii) non-cash interest expense related to the convertible debt.

Management believes that the exclusion of stock-based compensation allows for more accurate comparisons of Brocade's operating results to Brocade's peer companies because of the varying use of valuation methodologies and subjective assumptions and the variety of award types. In addition, the exclusion of the expense associated with the amortization of acquisition-related intangible assets is appropriate because a significant portion of the purchase price for acquisitions may be allocated to intangible assets that have short lives, and the exclusion of amortization expense allows comparisons of operating results that are consistent over time for Brocade's newly acquired and long-held businesses.

In connection with the convertible debt, under the relevant accounting guidance, a non-cash interest expense is recognized for the convertible debt as an imputed interest expense for the conversion feature. Management believes excluding the non-cash interest expense related to the convertible debt from its non-GAAP financial measures is useful for investors because the expense does not represent a cash outflow in the respective reporting periods and is not indicative of ongoing operating performance.

Finally, management believes that it is appropriate to exclude the tax effects of the items noted above in order to present a more meaningful measure of non-GAAP net income and non-GAAP EPS.

Limitations: These non-GAAP financial measures have limitations because they do not include all items of income and expense that impact the company. In addition, these non-GAAP financial measures may not be comparable to similar measurements reported by other companies. Management compensates for these limitations by relying primarily on its GAAP results and using non-GAAP financial measures only supplementally. Management also provides robust and detailed reconciliations of each non-GAAP financial measure to its most directly comparable GAAP measure, and management encourages investors to review carefully those reconciliations.

Forward-Looking Statements

This press release contains forward-looking statements including, but not limited to, statements regarding Brocade's financial results, goals, plans, strategy, business outlook and prospects. These statements are based on current expectations as of the date of this press release and involve a number of risks, uncertainties and assumptions that may cause actual results to differ significantly.

The risks, uncertainties and assumptions include, but are not limited to: the effect on Brocade of increasing market competition and changes in the industry; the impact on Brocade of conditions in the market for Storage Area Networking products; Brocade's ability to execute on its sales strategy and plans for future operations; the impact on Brocade of macroeconomic trends and events and changes in IT spending levels; Brocade's ability to introduce and achieve market acceptance of new products and support offerings on a timely basis; risks associated with Brocade's international operations and integration and other risks associated with acquisitions, divestitures and strategic investments.

These and other risks are set forth in more detail in Brocade's Form 10-Q for the fiscal quarter ended April 30, 2016, and in Brocade's Annual Report on Form 10-K for the fiscal year ended October 31, 2015. Brocade does not assume any obligation to update or revise any such forward-looking statements whether as the result of new developments or otherwise.

About Brocade

Brocade (NASDAQ: BRCD) networking solutions help the world's leading organizations turn their networks into platforms for business innovation. With solutions spanning public and private data centers to the network edge, Brocade is leading the industry in its transition to the New IP network infrastructures required for today's era of digital business. (www.brocade.com)

Brocade and the B-wing symbol are registered trademarks of Brocade Communications Systems, Inc., in the United States and many other countries. Other brands, products, or service names mentioned herein may be trademarks of Brocade or others.

Media Contact:

Ed Graczyk

Tel: 408-333-1836

Email: egraczyk@brocade.com

Investor Contact:

Michael Iburg

Tel: 408-333-0233

Email: miburg@brocade.com

(c) 2016 Electronic News Publishing -, source ENP Newswire

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on BROCADE COMMUNICATIONS SYS
08/29 BROCADE COMMUNICATIONS : Reports fiscal q3 2016 results
08/26 BROCADE COMMUNICATIONS : Helps customers build agile networks for digital busine..
08/25 BROCADE : Reports Fiscal Q3 2016 Results
08/25 BROCADE COMMUNICATIONS : tops Street 3Q forecasts
08/25 BROCADE COMMUNICATIONS SYSTEMS INC : Results of Operations and Financial Conditi..
08/25 BROCADE : Announces Third Quarter Fiscal Year 2016 Results
08/25 BROCADE COMMUNICATIONS : Analytics monitoring platform delivers unprecedented in..
08/24 BROCADE : Helps Customers Build Agile Networks for Digital Business at VMworld 2..
08/24 BROCADE COMMUNICATIONS : Analytics Monitoring Platform proporciona información s..
08/23 BROCADE COMMUNICATIONS : Plataforma de Monitoramento de Analítica Brocade oferec..
More news
Sector news : Communications & Networking - NEC
08/31DJMOTOROLA : Moto Z Phone Gets a Hasselblad Camera, but Not High-End Photos
08/31DJMARKET SNAPSHOT : Stocks Extend Losses As Energy Sector Slumps
08/31DJMARKET SNAPSHOT : Stocks Extend Losses As Energy Sector Slumps
08/31DJMARKET SNAPSHOT : Stocks Extend Losses As Energy Sector Slumps
08/31DJMARKET SNAPSHOT : U.S. Stocks Drift Lower As ADP Jobs Report Proves Solid
More sector news : Communications & Networking - NEC
News from SeekingAlpha
08/31 Argus bucks sentiment, goes bullish on Brocade
08/26 Brocade slides 11.7% as analysts focus on challenges over earnings beat
08/26 TECHNOLOGY - TOP 5 GAINERS / LOSERS : 00 pm
08/26 Midday Gainers / Losers
08/26 Brocade Communications Systems, Inc. 2016 Q3 - Results - Earnings Call Slides
Advertisement
Financials ($)
Sales 2016 2 329 M
EBIT 2016 491 M
Net income 2016 191 M
Debt 2016 47,2 M
Yield 2016 1,88%
P/E ratio 2016 20,29
P/E ratio 2017 17,31
EV / Sales 2016 1,60x
EV / Sales 2017 1,41x
Capitalization 3 671 M
More Financials
Chart BROCADE COMMUNICATIONS SYS
Duration : Period :
Brocade Communications Sys Technical Analysis Chart | BRCD | US1116213067 | 4-Traders
Full-screen chart
Technical analysis trends BROCADE COMMUNICA...
Short TermMid-TermLong Term
TrendsBearishNeutralNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 21
Average target price 10,8 $
Spread / Average Target 17%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Lloyd A. Carney Chief Executive Officer & Director
Dave L. House Chairman
Gale E. England Chief Operating Officer & Senior VP-Operations
Daniel W. Fairfax Chief Financial Officer & Senior Vice President
Ken K. Cheng CTO, SVP-Corporate Development & Emerging Business
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
BROCADE COMMUNICATIONS..0.11%3 671
CISCO SYSTEMS, INC.16.15%158 637
QUALCOMM, INC.25.92%92 751
TELEFONAKTIEBOLAGET LM..-24.54%24 371
ALCATEL LUCENT-4.66%13 767
MOTOROLA SOLUTIONS INC13.24%12 923
More Results