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November 23, 2010, 4:34 PM EST
By Joseph Galante
(Corrects to biggest drop in 9 months in first paragraph.)
Nov. 23 (Bloomberg) -- Brocade Communications Systems Inc., the biggest maker of switches for data-storage networks, fell the most in nine months on the Nasdaq after its fiscal first- quarter sales and profit forecasts missed analysts’ estimates.
Earnings, excluding some costs, will be 9 cents to 10 cents a share on sales of no more than $550 million, the San Jose, California-based company said yesterday in a regulatory filing. That compares with profit of 14 cents and sales of $556.9 million, the average of projections compiled by Bloomberg.
The report follows a forecast from Cisco Systems Inc., which leads the overall networking industry, that fell short of analysts’ predictions and sent its shares tumbling. Brocade competes with Cisco and Juniper Networks Inc. in the market for gear that directs data over computer networks. It was named in April as an acquisition target by Wedbush Morgan Securities Inc.
Brocade slid 57 cents, or 10 percent, to $5.13 at 4 p.m. New York time on the Nasdaq Stock Market, the largest decline since Feb. 23. The shares have lost 33 percent this year.
Net income in the fourth quarter fell 27 percent to $23.4 million, or 5 cents a share, from $32.1 million, or 7 cents, a year earlier. Revenue grew 5.5 percent to $550.4 million, the company said.
--Editors: Lisa Wolfson, Nick Turner
To contact the reporter on this story: Joseph Galante in San Francisco at jgalante3@bloomberg.net
To contact the editors responsible for this story: Tom Giles at tgiles5@bloomberg.net
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(Corrects to biggest drop in 9 months in first paragraph.)
Nov. 23 (Bloomberg) -- Brocade Communications Systems Inc., the biggest maker of switches for data-storage networks, fell the most in nine months on the Nasdaq after its fiscal first- quarter sales and profit forecasts missed analysts’ estimates.
Earnings, excluding some costs, will be 9 cents to 10 cents a share on sales of no more than $550 million, the San Jose, California-based company said yesterday in a regulatory filing. That compares with profit of 14 cents and sales of $556.9 million, the average of projections compiled by Bloomberg.
The report follows a forecast from Cisco Systems Inc., which leads the overall networking industry, that fell short of analysts’ predictions and sent its shares tumbling. Brocade competes with Cisco and Juniper Networks Inc. in the market for gear that directs data over computer networks. It was named in April as an acquisition target by Wedbush Morgan Securities Inc.
Brocade slid 57 cents, or 10 percent, to $5.13 at 4 p.m. New York time on the Nasdaq Stock Market, the largest decline since Feb. 23. The shares have lost 33 percent this year.
Net income in the fourth quarter fell 27 percent to $23.4 million, or 5 cents a share, from $32.1 million, or 7 cents, a year earlier. Revenue grew 5.5 percent to $550.4 million, the company said.
--Editors: Lisa Wolfson, Nick Turner
To contact the reporter on this story: Joseph Galante in San Francisco at jgalante3@bloomberg.net
To contact the editors responsible for this story: Tom Giles at tgiles5@bloomberg.net
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