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Brocade, the market leader in SAN switches and SAN directors, reported strong financial result as it closed its fourth fiscal quarter and fiscal year. Increased revenue in Brocade SAN switches, Fibre Channel products, and Ethernet product groups reflected the continued success of the Brocade brand.

 

Brocade’s fourth quarter revenue topped $550 million, increasing quarter-over-quarter by 9% and helping Brocade finish their year slightly above last year’s revenue results. Brocade also re-purchased an estimated $200 million of their common stock shares during the fourth quarter of 2011, equaling almost 9% of total outstanding shares.

Product Growth

Brocade’s SAN storage products garnered over $361 million in revenue in the fourth quarter. Although down 4% from the last fiscal year, Brocade saw strong demand for products like Brocade SAN switches, SAN directors, Fibre Channel, and Ethernet products.

Fibre Channel:

  • Brocade’s 16 Gbps Fibre Channel products alone earned approximately $40 million in the fourth quarter.
  • Brocade CEO Michael Klayko said that the rapid adoption of Fibre Channel products, like the 16 Gbps Fibre Channel SAN switches and Brocade directors, contributed to the fourth quarter revenue increases.

Ethernet:

  • Bringing in above $182 million, the Ethernet products reached record-level revenue. Ethernet brought in 11% more revenue than last year’s fourth quarter.
  • The Brocade VDX 6730 is a 10 GbE Ethernet switch that protects existing SAN environment investments by linking Fibre Channel fabrics to Ethernet fabrics.
  • Brocade witnessed significant growth in their Service Provider and Enterprise category clients, contributing 18% more revenue than in the previous year.

Although Brocade reported a loss of approximately $4 million this fiscal year, Brocade CEO Michael Klayko is focused on the future of SAN switches and SAN directors. Looking forward into 2012, Klayko said that Brocade wants to capitalize on its Fibre Channel and Ethernet momentum by providing an expanded product portfolio.


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