Brocade Announces Preliminary Q2 01 Financial Results

Apr 20, 2001, 01:00 ET from Brocade Communications Systems, Inc.

    SAN JOSE, Calif., April 20 /PRNewswire Interactive News Release/ --
 Brocade Communications Systems, Inc. (Brocade(R)) (Nasdaq:   BRCD) announced
 today preliminary results for the second quarter of fiscal 2001. Brocade
 expects to report total net revenue for the second quarter of fiscal 2001
 (Q2 01) that will be approximately 30 percent less than the net revenue
 reported in the first quarter of fiscal 2001 (Q1 01). Diluted net income per
 share for Q2 01 is expected to be in the range of $0.05-$0.06 per share.
 During the second quarter, Brocade expects that gross margins will remain in
 the 60 percent range and will continue at those levels for the next several
 quarters. Additionally, Brocade expects that DSOs will be within the target
 range of 50 to 60 days.
     Brocade will host a live a conference call today at 6:00 am Pacific Time
 to discuss the preliminary financial results. To listen to the call, dial
 719-457-2650, or connect via the Brocade web site at www.brocade.com. A replay
 of the conference call will be available following the call. Details on the
 replay are available at www.broacade.com. Brocade plans to announce complete
 second quarter results on May 15, 2001 at 1:00 pm Pacific Time.
     "We are sober about the affect that the economy has had on the enterprise
 technology marketplace and on our short-term business outlook. We are
 committed to doing what is right for the business and will continue to invest
 in engineering resources and quota-carrying sales personnel at a rate that
 will continue to outpace our competitors. We believe that our long-term
 prospects and competitive position in delivering the world's leading
 intelligent platform for networking storage have never been stronger. As
 enterprise capital spending continues to thaw, we are well positioned for
 growth in the latter part of fiscal 2001 and we expect our year-over-year
 revenue growth will be approximately 58 percent," said Greg Reyes, Brocade
 President and CEO.
 
     About Brocade Communications Systems, Inc.
     Brocade provides the world's leading intelligent platform for networking
 storage. For more information, visit the Brocade website at www.brocade.com or
 contact the company at info@brocade.com.
 
     Forward-looking Safe Harbor Statement
     This press release may contain forward-looking statements, as defined
 under Federal Securities Laws. These forward-looking statements include the
 company's expectations regarding second quarter revenues, EPS, gross margins
 and DSOs. In addition, it contains statements regarding the company's revenue
 growth for fiscal 2001. These statements are just predictions and involve
 risks and uncertainties, such that actual results may differ significantly.
 These risks include, but are not limited to, the effect of the remaining two
 weeks of the quarter and of the close of the accounting records for the
 quarter; the timely availability and market acceptance of new products and the
 effect of competition; possible fluctuations in future expenses; significant
 expenses that may need to be incurred but are unforeseen at this time; and the
 fluctuation in demand for the company's products.  Brocade's actual results
 may differ materially from the results discussed in these forward-looking
 statements. These and other risks are set forth in more detail in the
 Company's Form 10-K for the year ended October 28, 2000 and the Company's Form
 10-Q for the quarter ended January 27, 2001.  Brocade expressly assumes no
 obligation to update any such forward-looking statements.
 
     NOTE:  Brocade, SilkWorm, SilkWorm Express, Extended Fabrics, Fabric
 Aware, Fabric Integrator, Fabric OS, Fabric Threads, Fabric Watch, Fabric
 Weaver,  QuickLoop, and Secure Fabric OS  are trademarks or registered
 trademarks of Brocade Communications Systems Inc., in the United States and/or
 in other countries.  All other brands, products, or service names are or may
 be trademarks or service marks of, and are used to identify, products or
 services of their respective owners.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X02444888
 
 

SOURCE Brocade Communications Systems, Inc.
    SAN JOSE, Calif., April 20 /PRNewswire Interactive News Release/ --
 Brocade Communications Systems, Inc. (Brocade(R)) (Nasdaq:   BRCD) announced
 today preliminary results for the second quarter of fiscal 2001. Brocade
 expects to report total net revenue for the second quarter of fiscal 2001
 (Q2 01) that will be approximately 30 percent less than the net revenue
 reported in the first quarter of fiscal 2001 (Q1 01). Diluted net income per
 share for Q2 01 is expected to be in the range of $0.05-$0.06 per share.
 During the second quarter, Brocade expects that gross margins will remain in
 the 60 percent range and will continue at those levels for the next several
 quarters. Additionally, Brocade expects that DSOs will be within the target
 range of 50 to 60 days.
     Brocade will host a live a conference call today at 6:00 am Pacific Time
 to discuss the preliminary financial results. To listen to the call, dial
 719-457-2650, or connect via the Brocade web site at www.brocade.com. A replay
 of the conference call will be available following the call. Details on the
 replay are available at www.broacade.com. Brocade plans to announce complete
 second quarter results on May 15, 2001 at 1:00 pm Pacific Time.
     "We are sober about the affect that the economy has had on the enterprise
 technology marketplace and on our short-term business outlook. We are
 committed to doing what is right for the business and will continue to invest
 in engineering resources and quota-carrying sales personnel at a rate that
 will continue to outpace our competitors. We believe that our long-term
 prospects and competitive position in delivering the world's leading
 intelligent platform for networking storage have never been stronger. As
 enterprise capital spending continues to thaw, we are well positioned for
 growth in the latter part of fiscal 2001 and we expect our year-over-year
 revenue growth will be approximately 58 percent," said Greg Reyes, Brocade
 President and CEO.
 
     About Brocade Communications Systems, Inc.
     Brocade provides the world's leading intelligent platform for networking
 storage. For more information, visit the Brocade website at www.brocade.com or
 contact the company at info@brocade.com.
 
     Forward-looking Safe Harbor Statement
     This press release may contain forward-looking statements, as defined
 under Federal Securities Laws. These forward-looking statements include the
 company's expectations regarding second quarter revenues, EPS, gross margins
 and DSOs. In addition, it contains statements regarding the company's revenue
 growth for fiscal 2001. These statements are just predictions and involve
 risks and uncertainties, such that actual results may differ significantly.
 These risks include, but are not limited to, the effect of the remaining two
 weeks of the quarter and of the close of the accounting records for the
 quarter; the timely availability and market acceptance of new products and the
 effect of competition; possible fluctuations in future expenses; significant
 expenses that may need to be incurred but are unforeseen at this time; and the
 fluctuation in demand for the company's products.  Brocade's actual results
 may differ materially from the results discussed in these forward-looking
 statements. These and other risks are set forth in more detail in the
 Company's Form 10-K for the year ended October 28, 2000 and the Company's Form
 10-Q for the quarter ended January 27, 2001.  Brocade expressly assumes no
 obligation to update any such forward-looking statements.
 
     NOTE:  Brocade, SilkWorm, SilkWorm Express, Extended Fabrics, Fabric
 Aware, Fabric Integrator, Fabric OS, Fabric Threads, Fabric Watch, Fabric
 Weaver,  QuickLoop, and Secure Fabric OS  are trademarks or registered
 trademarks of Brocade Communications Systems Inc., in the United States and/or
 in other countries.  All other brands, products, or service names are or may
 be trademarks or service marks of, and are used to identify, products or
 services of their respective owners.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X02444888
 
 SOURCE  Brocade Communications Systems, Inc.