Brocade Communications Systems posts a strong third quarter

Turnover increases by 55 per cent compared with same period last year

Brocade Communications Systems increased turnover by 55 per cent to $188.9m during its third quarter 2006, compared with the same period last year, just three weeks after its $713m acquisition of McData.

For the three months ended 29 July, Brocade’s non-Generally Accepted Accounting Principals profit increased to $31m, compared with $26.4m in the previous quarter. The vendor also claimed that combined OEM sales to EMC, Hewlett-Packard and IBM represented 74 per cent of total turnover.

Michael Klayko, chief executive of Brocade, said in a statement: “Our results this quarter were outstanding. They represent the third consecutive quarter of record revenues.”

At the end of Q3, Brocade also spent about $25.3m to repurchase 4.2 million shares through its authorised purchase programme.

Brocade acquires McData