In Q4 01, net revenue was $116.5 million, as compared to the $116.3 million
reported in the third quarter of fiscal 2001 (Q3 01). For fiscal year 2001 (FY
01), revenue was a record $513.0 million, an increase of $184.0 million, or 56
percent, from fiscal year 2000 (FY 00). Brocade exited Q4 01 with $12.6
million in deferred revenue.
Diluted pro forma net income per share for Q4 01 was $0.05, consistent
with the diluted net income per share reported in Q3 01. Pro forma net income
for Q4 01 was $10.9 million as compared to net income of $12.0 million
reported in Q3 01. For FY 01, pro forma net income was $67.4 million and pro
forma diluted net income per share was $0.28, as compared to net income of
$67.9 million and diluted net income per share of $0.28, respectively,
reported in FY 00. These pro forma results exclude charges of $77.1 million
related to purchase commitments, facilities lease losses and asset
impairments, and the write-down of private minority equity investments.
These results compare to net revenue of $132.1 million reported in the
fourth quarter of fiscal 2000 (Q4 00) and net income and diluted net income
per share of $27.2 million and $0.11, respectively.
During the fourth quarter, pro forma gross margins remained at 60.0
percent, a slight improvement over the 59.8 percent gross margins reported in
Q4 00 and consistent with Q3 01 gross margins. Gross margins on a pro forma
basis for FY 01 were 60.0 percent, as compared to 58.2 percent gross margins
for FY 00.
In Q4 01 Brocade generated $14.2 million in cash after purchasing
approximately $18.7 million in capital equipment. For FY 01, Brocade generated
more than $100 million in cash, after investing $82.3 million in capital
equipment. Brocade’s total cash balance at the end of Q4 01 was a record
$255.1 million.
For Q4 01, accounts receivable days sales outstanding was 54 days, down
from the 57 days achieved during Q3 01. Inventory at the end of the fourth
quarter was $10.3 million and represented annualized inventory turns of 18
times on a pro forma basis.
Greg Reyes, Brocade Chairman and CEO, commented on the quarter, We are
very pleased with our results for 2001 and our ability to manage and optimize
our business model in a challenging economic environment. We believe that our
investments in 2001, including our significant investment in research and
development, will allow us to take full advantage of the next phase in the
market’s evolution and position us for resumed growth in 2002.
Reyes continued, In today’s cost-conscious business environment, the
value proposition for Brocade storage area networks has never been more
relevant-helping companies optimize capital assets, increase productivity of
personnel, and significantly reduce the total cost of ownership of storage
environments. As we move into fiscal year 2002, we believe that we are
incredibly well positioned to continue to expand our leadership position as
the world’s leading provider of storage area networking infrastructure.
