Brocade cuts revenue outlook for Q2 due to weak storage demand

Infotech Lead America: Brocade cut its revenue outlook for the second quarter from the previously estimated $555-$575 million to $536-$541 million, due to the year-over-year decline of 6 – 7 percent that Brocade’s storage business suffered as weak storage demand hit some of its manufacturing partners.

Brocade anticipates that its Q2 2013 Storage Area Networking (SAN) business revenue including product and services will be down by approximately 10 to 11 percent quarter-over-quarter.

Brocade expects its IP Networking business revenue, including product and services to be roughly between $163 million to $165 million in Q2 2013 – an increase of approximately 14 to 15 percent year-over-year. This growth was driven in part by the additions to the Brocade campus LAN portfolio, higher VDX and Ethernet fabric sales and better sales execution.


Lloyd Carney, CEO of Brocade expects the company to achieve long-term success in the data center by providing   technology and solutions that are relevant to the problems that customers face today.

Brocade’s revenues for the first fiscal 2013 quarter, ended 26 January 2013, $588.7 million were hit by a change in the California tax code. Brocade was expecting net income of around $60 million but instead suffered a $21 million loss due to the tax slurp.

Recently Brocade launched a couple of virtual networking products and a switch software revision to venture deeper into the software-defined networks (SDN) market.

Created by leveraging the technology inherited from its acquisition of Vyatta last year, Brocade’s Vyatta 5400 vRouter portfolio forms a key part of its On-Demand Data Center initiative. Last month, Brocade also launched a virtual application delivery switch, physical router and 40 Gigabit Ethernet switch modules, updates to its NetIron network software, and a plug-in for the OpenStack cloud technology.

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