Networking gear maker Brocade has reported revenues of $501m for the second quarter of fiscal 2010, a decrease of 1.1% compared to $506.3m for the same period last year. Product revenues were $409.89m and service revenue accounted for $91.1m for the quarter.
Adjusted EBITDA was $116.4m, down from $154.7m in Q1 and $119.9m in the same period last year. The company posted an operating income of $41.7m for the second quarter of 2010, compared to an operating loss of $61.92m for the same period last year.
For first fiscal quarter ended May 1, 2010, the company reported a net income of $22.38m, or $0.05 diluted per share for the second quarter of 2010, compared to a loss of $66.09m, or $0.17 for the same period a year ago.
Data storage revenues accounted for 56% of the revenues, down by two percentage points from 58% in the second quarter of 2009. Ethernet products revenue accounted for 26% of the total revenues, while domestic revenues and international revenues accounted for 65% and 35% of the total revenues, respectively. Total Storage Area Networking (SAN) port shipments were approximately one million.
Michael Klayko, CEO of Brocade, said: “Q2 was highlighted by a strong recovery in our ethernet business, particularly in the Federal sector, which grew over 160% sequentially. The quarter highlights also included robust end-user demand for our storage networking products, measured on a sell-through basis, driven by positive macro trends such as the growth of the fibre channel market.
“Looking forward, we will continue to aggressively pursue the initiatives we have put into place to continue to drive sales of our ethernet solutions to help meet our long-term goals for that part of our business. We are also encouraged by the apparent stabilisation and recovery of IT spending trends globally that should help drive further momentum for our overall business in the second, and typically stronger, half of our fiscal year.”
