May 20, 2010 – Brocade’s report today on its fiscal second quarter earnings was boring, at least compared to, say, Dell’s dazzling report today, HP’s home run earlier this week, or even to Brocade’s bubbly Q1 results.
The best thing you could say about Brocade’s earnings was that there were earnings. The company turned a net profit of $22.4 million in the second quarter. That compares to a net loss of $66.1 million for the same period last year.
Brocade (NSDQ: BRCD) reported Q2 revenues of $501 million, which was 1.1% off its Q2 2009 revenue. That’s what was so surprising: There wasn’t much change in this period vs. the same period a year ago.
For example, if you break Brocade’s business into three major segments, the SAN (Fibre Channel) business accounted for 56% of the company’s total revenues in Q2 2010 vs. 58% in Q2 2009. Global services represented 18% of total revenues, vs. 17% last year, and Ethernet accounted for 26%, vs. 25% in Q2 2009.
The highlight of the Fibre Channel king’s revenue report was . . . Ethernet. Brocade’s Ethernet business posted a 34% gain over the first quarter of this year (although only 2% year-over-year). In fact, Q2 was Brocade’s highest revenue quarter for Ethernet ($156.7 million in products and services) since the company acquired Foundry.
The other bright spot was a surge in Brocade’s federal business, which soared 161% over Q1 revenues.
Brocade officials stuck to their previous prediction of full fiscal 2010 revenues in the $2.1 billion to $2.2 billion range.
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