Brocade Communications Systems Crushes Q1 Targets, Sets the Bar Low for Q2
Shares of Brocade Communications Systems surged in after-hours trading, as the company reported results for the first quarter of fiscal 2014.
The maker of storage networking equipment saw sales fall 4% year over year, landing at $565 million. Non-generally accepted accounting principles earnings rose 14% to $0.24 per share. Analysts were looking for adjusted earnings of $0.20 per share on about $550 million in revenue.
Brocade CEO Lloyd Carney pinned the quarter's success on strong demand for high-speed storage area networking solutions. Cutting-edge Generation 5 Fibre Channel products accounted for 71% of Brocade's storage sales in the quarter, up from 42% in the year-ago period.
Carney said he hopes to continue driving the product mix even further in the direction of highly profitable top-shelf solutions. "This is a transformational year for Brocade," he said in a prepared statement, "and we remain committed to our mission to be the network provider of choice to the world's data centers."
In a separate document, Brocade outlined second-quarter guidance ranges centered around $530 million in total sales and roughly $0.18 of adjusted earnings per share. The top end of this guidance aligns with the current analyst view.
Brocade shares surged as much as 9% higher on the strong first-quarter results, but fell back to a more modest 4% gain when the soft guidance started sinking in. Even so, Brocade prices at press time exceeded the stock's 52-week highs by about $0.10.
The article Brocade Communications Systems Crushes Q1 Targets, Sets the Bar Low for Q2 originally appeared on Fool.com.Anders Bylund has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.