Brocade Reports Second Quarter Fiscal Year 2007 Results Revenues Reported of $345.3 Million

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2007-06-12 18:35

Seoul--(뉴스와이어)--Brocade (Nasdaq: BRCD), the leader in networked storage solutions that help enterprises connect and manage their information, reported financial results for its second quarter of fiscal year 2007 (Q2 07), which ended April 28, 2007. Revenues for Q2 07 were $345.3 million.

Revenues for Q2 07 increased 54% from $224.2 million reported in the first quarter of fiscal year 2007 (Q1 07) and increased 89% from $182.7 million reported in the second quarter of fiscal year 2006 (Q2 06). Q2 07 results include products and services acquired through the McDATA transaction which closed on January 29, 2007.

Commenting on the Company’s second quarter results, CEO Michael Klayko said, “The fundamentals of our business remain strong and I am extremely pleased with our execution this quarter. We will continue to execute on our strategy of growth and diversification and we remain committed to delivering exceptional results.”

Reporting on a GAAP basis, net income for Q2 07 was $0.8 million, or $0.00 per share basic and diluted. This reflects a decrease in GAAP net income of 98% from $33.3 million, or $0.12 per share basic and diluted in Q1 07, and a decrease of 94% from GAAP net income of $13.5 million, or $0.05 per share basic and diluted in Q2 06. The decrease quarter to quarter reflects the impact of non-cash amortization of purchased intangibles and related income tax adjustments from the McDATA acquisition.

Non-GAAP net income for Q2 07 was $46.6 million or $0.12 per share basic and $0.11 per share diluted. This reflects a decrease of 6% from non-GAAP net income of $49.4 million, or $0.18 per share basic and $0.17 per share diluted in Q1 07, and an increase of 77% from non-GAAP net income of $26.4 million, or $0.10 per share basic and diluted in Q2 06. Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. A detailed reconciliation between GAAP and non-GAAP information is contained in the tables included herein.

Q2 07 Financial Highlights

· In Q2 07, as a percent of total, service revenue exceeded 10% for the first time.

· In Q2 07, as a percent of total, OEM revenues were 85% and Channel/Direct were 15%. This compares to 92% and 8%, respectively in Q1 07 and 93% and 7%, respectively, in Q2 06. Three OEM customers, EMC, HP, and IBM, each accounted for 10% or more of total revenues and together represented approximately 67% of total revenues. The same three customers each accounted for 10% or more of total revenues and together represented approximately 72% in Q1 07 and 70% in Q2 06 of total revenues.

· In Q2 07, as a percent of total, domestic revenue was 65% and international was 35%. This compares to 59% and 41%, respectively in Q1 07 and 63% and 37%, respectively, in Q2 06.

· Q2 07 port growth was 63% from Q1 07, reflecting the addition of McDATA product offerings. This brings the Company’s total installed base to approximately 13.2 million installed SAN ports.

· Q2 07 sequential Average Selling Price (ASP) declines were again in the low single digits.

· Q2 07 non-GAAP operating margin was 16.8%, compared to non-GAAP operating margin of 26.1% in Q1 07 and non-GAAP operating margin of 16.6% in Q2 06.

· Q2 07 cash flow from operations was $46.2 million, compared to $33.3 million in Q1 07 and $55.7 million in Q2 06.

· Cash and cash equivalents and investments, including restricted short-term investments, net of the Company’s convertible debt at the end of Q2 07 were $674.5 million compared to $631.7 million at the end of Q1 07 and $502.1 million at the end of Q2 06.

· In Q2 07, the Company repurchased $60 million of its common stock, representing 6.3 million shares. The Company has $192.9 million remaining under the outstanding stock buyback authorizations.

· Day sales outstanding in accounts receivable for Q2 07 were 40 days, compared to 38 days in Q1 07 and 38 days in Q2 06.

· Q2 07 capital expenditures were $14.2 million. This compares to $13.4 million in Q1 07 and $7.3 million in Q2 06.

· As of April 28, 2007, the Company had 2,440 employees, compared with 1,532 employees as of January 27, 2007 and 1,316 employees as of April 29, 2006. The increase in employees reflects the acquisition of McDATA Corporation, which closed during Q2 07.

· Q2 07 results include a full quarter of McDATA results. Prior periods do not include McDATA results.

· In Q2 07, the Company executed exceptionally well on its McDATA integration plan. The Company achieved annualized synergies of $131 million, within its upwardly revised target range of $125 to $150 million, three quarters earlier than the original commitment. The transaction was accretive to the Company’s acquisition model presented at its analyst meeting in September 2006, three quarters earlier than the original commitment. Finally, on a non-GAAP basis, the Company achieved its target operating margin model of 15-20%.

웹사이트: http://www.brocade.com