Brocade reports growth in wake of networking move

Storage vendor reports 35 per cent year-on-year third-quarter growth following Foundry acquisition

Brocade's acquisition of Foundry bolstered its Q3 revenues by more than a third

Storage vendor Brocade has reported 35 per cent year-on-year growth for its third quarter.

For the period ending 1 August, Brocade hit $493.3m (£298m) in revenues compared with $365.7m a year earlier. However, the vendor reported a sequential revenue decline of three per cent from $506.3m in Q209.

Non-GAAP gross margin increased from 56.2 per cent to 58.2 per cent sequentially.

Michael Klayko, chef executive of Brocade, said: “We are very pleased with our financial performance which delivered a 35 per cent year-over-year revenue growth and a healthy sequential increase in gross margins during a seasonally and economically challenging quarter.

“The traction Brocade has made in both new and existing partnerships, the opportunities we see in our core markets, combined with our continued product and technology innovation all demonstrate that we are executing on our well-defined strategy and make us optimistic for both the near- and long-term future.”

December saw the vendor purchase IP networking firm Foundry.

Brocade continued its attack on the IP networking arena in June when it launched its Alliance Partner Network. June also saw the vendor open its entire portfolio to existing distributor Avnet. The move was part of Brocade’s continuing strategy to unite its storage area network (SAN) and IP networking businesses.

IP products accounted for 24 per cent of Brocade’s revenue in Q308 compared with just one per cent a year ago.