Post-Earnings Coverage - Brocade Communications

LONDON, December 16, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings coverage on Brocade Communications Systems Inc. (NASDAQ: BRCD). On November 24, 2014, the company reported its Q4 FY14 and full-year FY14 financial results (period ended November 01, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on Brocade Communications Systems (Brocade). During Q4 FY14 and for FY14, the company's GAAP diluted EPS increased 36% and 18%, respectively on Y-o-Y basis. Further, Brocade's Q4 FY14 revenue increased 1% from Q4 FY13. CEO of Brocade, Lloyd Carney, stated that the company delivered another strong quarter, highlighted by above-market growth of 9% in IP Networking product revenue and 2% SAN product revenue growth, on continuing products. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

In Q4 FY14, Brocade's revenue grew to $564.36 million from $558.80 million in Q4 FY13. The company's Q4 FY14 revenue exceeded Bloomberg analysts' forecasts of $562.79 million. During Q4 FY14, Brocade's revenue from its product segment increased to $476.91 million from $468.58 million in Q4 FY13, while its revenues from services segment decreased to $87.45 million from $90.22 million in Q4 FY13. The free research on BRCD can be downloaded as in PDF format at:

http://get.Investor-Edge.com/pdf/?c=Brocade%20Communications%20Systems&d=16-Dec-2014&s=BRCD

Brocade's GAAP and non-GAAP operating margins for Q4 FY14 increased to 22.4% and 26.8%, respectively, from 15.0% and 26.6%, respectively in Q4 FY13. The company's Q4 FY14 income from operations increased to $126.53 million from $83.65 million in Q4 FY13. The company's GAAP net income for Q4 FY14 increased to $83.42 million, or $0.19 per diluted share, from $64.23 million, or $0.14 per diluted share, in Q4 FY13. Further, on a non-GAAP basis, the company reported Q4 FY14 net income of $104.50 million, or $0.24 per diluted share, compared to $109.49 million, or $0.24 per diluted share, in Q4 FY13.

The company's revenue for FY14 decreased to $2,211.27 million from $2,222.86 million in FY13 due to the divestiture and repositioning of certain product lines. Brocade's FY14 revenue from its product segment decreased to $1,852.19 million from $1,870.57 million in FY13, while its FY14 revenue from service segment grew to $359.08 million from $352.30 million in FY13. Sign up and read the free analyst's notes on BRCD at:

http://get.Investor-Edge.com/pdf/?c=Brocade%20Communications%20Systems&d=16-Dec-2014&s=BRCD

Brocade's GAAP and non-GAAP operating margins for FY14 stood at 17.5% and 25.9%, respectively. The company's FY14 income from operations increased to $386.11 million from $308.48 million in FY13. Brocade reported FY14 net income of $237.97 million, or $0.53 per diluted share, compared to $208.62 million or $0.45 per diluted share in FY13. Analysts from Bloomberg had expected the company to report net income of $236.86 million, or $0.54 per diluted share, in FY14. Further, the company's non-GAAP net income for FY14 increased to $402.69 million, or $0.90 per diluted share, from $372.95 million, or $0.80 per diluted share, in FY13.

Brocade's Board of Directors declared a quarterly cash dividend of $0.035 per share on the company's common stock. The dividend is payable on January 2, 2015, to the shareholders as of record on December 10, 2014.

Stock Performance  

On the day following the earnings release, November 25, 2014, Brocade's stock declined 2.48% to end the session at $11.40. Although the stock has moved both ways since then, the losses have outweighed the gains so far. On the last close, Monday, December 15, 2014, Brocade's shares finished 0.36% lower at $11.05. The company's shares vacillated between $10.97 and $11.32 during the session. A total of 2.41 million shares were traded, which was below its three months average volume of 4.95 million shares. The stock has fallen by 0.45% in the previous three trading sessions. However, over the previous three months and since the beginning of 2014, the company's shares have surged 9.51% and 24.65%, respectively. Shares in Brocade closed above their 50-day and 200-day moving averages of $10.68 and $9.86, respectively. Furthermore, the stock traded at a PE ratio of 16.84 and has a Relative Strength Index (RSI) of 49.29. Visit Investor-Edge and access the latest research on BRCD at:

http://get.Investor-Edge.com/pdf/?c=Brocade%20Communications%20Systems&d=16-Dec-2014&s=BRCD

Sneak Peek to Corporate Insider Trading 

In the last one month, there were 5 insider selling transactions made by 3 individuals. Between November 28, 2014 and December 06, 2014, a total of 85,874 shares have been disposed at an average price of $11.41 per share and for a total value of $979,831. During the stated period, Daniel W. Fairfax, Chief Financial Officer at Brocade, disposed 54,352 shares at an average price of $11.38. On December 05, 2014, Lloyd Carney sold 11,954 shares at an average price of $11.42. Additionally, on December 06, 2014, Ken Cheng, Chief Technology Officer and Vice President-Corporate Development and Emerging Business at Brocade, disposed 19,568 shares at a price of $11.49 per share. Complimentary in-depth research on BRCD is available at:

http://get.Investor-Edge.com/pdf/?c=Brocade%20Communications%20Systems&d=16-Dec-2014&s=BRCD

About Investor-Edge.com 

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