Revenues of $591 million in fiscal 3Q16
On August 25, 2016, US-based (SPY) Brocade Communications (BRCD) announced its fiscal 3Q16 results and reported revenues of $591 million. The company’s revenues rose by 7% YoY (year-over-year) and 13% quarter-over-quarter.
BRCD’s GAAP[1. generally accepted accounting principles] diluted earnings per share (or EPS) fell to $0.02 in fiscal 3Q16 from $0.21 in fiscal 3Q15 and $0.11 in fiscal 2Q16.
Brocade noted that its decline in EPS was driven by acquisition-related costs, lower gross margins associated with acquired inventory, and acquisition and integration costs. Its non-GAAP EPS fell by 21% YoY and by 2% quarter-over-quarter to $0.21. This was primarily driven by acquisition-related purchase accounting adjustments, unfavorable revenue mix, and higher operating expenses.
“Against the backdrop of a mixed macro environment, we posted solid results, with total revenue at the high end of our outlook range,” said Lloyd Carney, CEO of Brocade Communications. “During Q3, we also continued the momentum of new product innovations across our portfolio, building a solid foundation for business growth and expansion of our addressable markets.”
What did analysts expect in fiscal 3Q16?
Analysts estimated that Brocade Communications (BRCD) would post revenues of ~$573.1 million for fiscal 3Q16.[1. ended July 2016] Analysts’ low estimate was ~$566.6 million, and the high estimate was $580.8 million. Brocade’s earnings per share are estimated to come in at $0.16, with a high estimate of $0.17 and a low estimate of $0.15.
The next few articles in this series will look at Brocade’s main business segments: SAN (storage area network) and IP Networking.