Pacific Crest Securities Sees Data Center And International Drive Upside For Brocade Communications Systems

In a report published Monday, Pacific Crest Securities analyst Ryan Hutchinson reiterated a Sector Perform rating on Brocade Communications Systems BRCD. In the report, Pacific Crest Securities noted, “Revenue of $545.5 million came in at the high end of guidance and above the consensus estimate of $534.7, equating to a sequential and y/y increase of 2%. SAN product revenue of $327 million came in well above consensus of $309.3 million, driven primarily by international strength and Gen 5 Fibre Channel migration. In Brocade's IP networking segment, growth in data center VDX sales was offset by weakness in routing, in addition to the sale of Brocade's adapter card business to QLogic. Brocade continued its foray into NFV and SDN with the launch of Vyatta Platform, and cited increased proof-of-concept trials at enterprise and SP data centers. EPS of $0.23 beat consensus by $0.04.” Brocade Communications Systems closed on Friday at $9.74.