Fusion Research
Research analyst, oil & gas, tech, mid-cap

Brocade: A Silver Lining For On-Site Data Storage

Brocade (NASDAQ:BRCD) reported a negative second quarter result, with revenue of $539 million showing a decline of 8% quarter over quarter. This was mostly because of a weaker Storage Area Networking, or SAN, market. In the second quarter, SAN revenue was $319 million, showing a decline of 7% year-over-year. This was because of enterprises' reduced spending for storage solutions. The company's management further expects an 8% to 11% fall in storage revenues in the third quarter this year.

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Source: ChannelRegister

Despite negative sales, one good aspect of Brocade's second quarter result is its high gross profit margin of SAN business at the 50% level. Still, its lack of earning power raises concerns about the...

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