SAN JOSE, Calif. (AP) — Network gear maker Brocade Communications Systems Inc. on Thursday reported a sharply lower profit in its fiscal third quarter, hurt by slightly lower revenue and steep charges.
The company said net income fell to $1.9 million, or breakeven on a per-share basis, in the three months ended July 30. That compares with net income of $22.5 million, or 5 cents a share, in the prior-year quarter.
Excluding stock option expenses and other items, Brocade said it earned 9 cents a share.
That matched analysts’ consensus forecast of 9 cents a share, according to FactSet.
Revenue was dipped to $502.9 million, from $504.3 million a year earlier. Analysts were expecting revenue of $515.4 million.
Brocade said revenue from its storage business fell 6 percent from the year-ago quarter, reflecting weaker-than-expected user demand.
Revenue at the company’s Ethernet business rose 13 percent, driven primarily by demand from service providers and enterprise customers.
Federal Ethernet business was down 33 percent, however.
“Headwinds in the IT market, federal spending, and overall global economy made for a challenging quarter for the Company,” said Michael Klayko, Brocade’s CEO.
Brocade shares added 4 cents to $3.40 in aftermarket trading. The shares tumbled 41 cents, or nearly 11 percent, to $3.32 during the regular session.