SAN switch and director maker, Brocade Communications Systems Inc., has forecast better than expected third quarter profits and said that revenue will be in line with its previous guidance of $149.5 million to $150.5 million, around 12% above last year’s level.
Brocade expects earnings per share to be in the range of $0.06 to $0.06 while analysts polled by Reuters had been looking for a figure of $0.04. The figure includes a pre-tax gain of $3.5 million, equivalent to $0.01 a share related to purchases of $47.4 million of convertible subordinated debt.
CEO Greg Reyes could not resist putting the boot in on his competitors, saying that given the unusually large number of pre-announcements by storage companies with lower than expected results, the company believed it was important to provide preliminary results so the market can assess its performance and competitive position accurately.
Earlier this month, Computer Networking Technologies Corp. issued a profit warning for the second quarter running and planned cost cuts.