Nov. 22 (Bloomberg) -- Brocade Communications Systems Inc. rose after the maker of switches for data-storage networks reported fourth-quarter profit that beat analysts’ estimates.
Brocade, based in San Jose, California, rose 4.5 percent to $4.68 at 9:41 a.m. New York time, after earlier gaining as much as 6.5 percent. The stock had dropped 15 percent this year before today.
Profit excluding certain items rose to 16 cents a share for the period ended Oct 29, the company said in a statement yesterday. Analysts had projected 10 cents on average, according to data compiled by Bloomberg.
Record revenue for its Ethernet business and fast adoption of its 16 gigabit-per-second Fibre Channel products, components of storage-area networks, aided Brocade in the fourth quarter, Michael Klayko, the company’s chief executive officer, said in the statement.
Brocade recorded a net-income loss of $4.3 million, or 1 cent a share, compared with a gain of $22.2 million, or 5 cents a share a year earlier.
Fourth-quarter revenue rose to $550 million. The company said it expects revenue in a range of $530 million to $550 million in its fiscal first quarter. Analysts had estimated $541 million.
--Editors: Niamh Ring, James Callan
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