On February 23, 2017, US-based (SPY) Brocade Communications Systems (BRCD) announced its fiscal 1Q17 results and reported revenue of $581 million. The company’s revenue rose 1% YoY (year-over-year) and fell 12% quarter-over-quarter.
BRCD’s non-GAAP (generally accepted accounting principles) diluted EPS (earnings per share) fell to $0.16 in fiscal 1Q17, compared to $0.33 in fiscal 4Q16 and $0.29 in fiscal 1Q16. Its non-GAAP EPS fell 50% quarter-over-quarter and 43% YoY, primarily due to its lower SAN (storage area network) and IP Networking revenue, partially offset by its Ruckus acquisition.
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Analysts estimated that Brocade Communications would post revenue of ~$590 million for fiscal 1Q17. Brocade’s EPS were expected to come in at $0.26. Analysts expect Brocade to post revenue of $599 million and EPS of $0.21 in fiscal 2Q17. They also expect Brocade’s revenue to rise 14.5% YoY in fiscal 2Q17, 3.8% YoY in fiscal 3Q17, and 5.5% YoY in fiscal 2017.
Brocade has a market cap of $4.9 billion. Peer companies NetApp (NTAP), Hewlett-Packard Enterprise (HPE), and Cisco (CSCO) have market caps of $11 billion, $35 billion, and $173 billion, respectively.
Continue to the next part of this series for a look at Brocade’s main business segments: SAN and IP Networking.