SAN JOSE, Calif. (AP) — Network gear maker Brocade Communications Systems Inc. said Monday it slid to a loss in its fiscal fourth quarter, hurt by higher charges related to restructuring costs, stock-based compensation and other expenses.
But its revenue and adjusted net income topped analysts’ expectations and its shares jumped in extended trading.
The company reported a loss of $4 million, or a penny a share, for the three months ended Oct. 29. That compares with net income of $22 million, or 5 cents a share, in the prior-year period.
Excluding special items, Brocade earned 16 cents a share, the company said.
On that basis, the latest results trumped analysts’ consensus forecast for a profit of 10 cents a share, according to FactSet.
Brocade’s revenue in the latest quarter inched up to $550 million from $549 million a year earlier. Analysts had anticipated revenue of $527.4 million.
Management credited the bump in revenue to record sales at its Ethernet business, which climbed to $189.2 million, an 11 percent increase from the prior-year quarter. But revenue at Brocade’s storage business fell 4 percent from a year earlier.
During the fourth quarter, Brocade paid down $50 million on its existing term loan balance, ending its fiscal year with a balance of $190 million.
For fiscal 2011, Brocade earned $50.6 million, or 10 cents a share, compared with net income of $116.5 million, or 24 cents a share, the year before. Revenue rose to $2.14 billion from $2.09 billion.
Brocade shares rose 25 cents, or 5.6 percent, to $4.73 in aftermarket trading. The shares ended the regular session down 16 cents, or 3.5 percent, at $4.48.