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Brocade hits 3Q targets
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August 15, 2001: 5:36 p.m. ET
Computer network switch maker sees profit fall, revenue up; warns on 4Q
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NEW YORK (CNNfn) - Computer network switch maker Brocade Communications Systems Inc. posted earnings and sales Wednesday in line with Wall Street forecasts, although it said that fourth quarter results should be just below current targets.
The company posted net income of $12 million, or 5 cents a diluted share, for its fiscal third quarter, which ended July 28. That was in line with the forecast of analysts surveyed by earnings tracker First Call, but down from the $20.1 million, or 8 cents a diluted share, it reported in the year-earlier period.
Revenue rose to $116.3 million from $92.1 million in the year-earlier period. First Call's forecast called for sales of $115.2 million.
Shares of Brocade (BRCD: Research, Estimates) climbed $1.17 to $31.51 in after-hours trading Wednesday following the earnings report after losing $1.82 in regular-hours trading.
In a conference call the company said it is looking for earnings of 5 cents a share and revenue of $120 million in the fourth quarter. That puts it just below current First Call forecasts that call for revenue to slip to $121.9 million, down from $132.1 million a year earlier, while earnings per share was seen dropping to 6 cents from 11 cents a year earlier.
The company said it believes it will still see relatively strong results as customers use its products to stretch their information technology infrastructure.
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"We continue to be mindful about the effect that the economy is having on IT budgets," said a statement from Greg Reyes, Brocade's CEO. "However, we believe that we are uniquely positioned to take advantage of the massive market opportunity as companies seek to get more out of their computer, storage, and personnel resources." 
Reuters contributed to this report
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