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AFTER HOURS- Brocade Communications Systems Up 16 Percent (BRCD)

Brocade Communications Systems (NASDAQ: BRCD) is up 16.5 percent after hours Tuesday on positive earnings. The company reported fiscal third quarter earnings of $0.26 versus consensus of $0.12–blowing away the estimate by $0.12 and up 86 percent year over year.

The company sees fourth-quarter EPS of $0.17-0.19 versus analyst consensus of $0.15. Further, it projects sales of $545 million – $565 million versus the street’s estimate of $548 million

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“In Q3, Brocade exceeded our guidance for revenue, non-GAAP operating margin, non-GAAP EPS, and cash flow,” said Lloyd Carney, CEO of Brocade. “The storage market is recovering more quickly than we had anticipated entering our third quarter and, coupled with continued strong adoption of Gen 5 Fibre Channel, contributed to good Storage Area Networking (SAN) revenue results. In IP Networking, our Federal sales were disappointing while Brocade VDX™ switch revenue showed continued strong growth in Q3, underscoring our leadership in Ethernet fabrics. We are making great progress toward our spending-reduction goal, and are already seeing the benefits in our financial results and cash flow.”

Year to date, the company is up 20 percent. Wednesday’s trading day should add a considerable amount to its 2013 gains.

Company Profile:

Brocade Communications Systems, Inc. engages in the supply of Internet protocol based Ethernet networking solutions and storage area networking (SAN) solutions to businesses and organizations worldwide. Its Storage Area Networking Products segment offers include infrastructure products and solutions, such as fiber channel SAN backbones, directors, fabrics, and embedded switches; host bus adapters; and fabric extension, switching, and routing solutions. (from Yahoo! Finance)

[stock-tools exchange="NASDAQ" symbol="BRCD" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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