Brocade profits fall

Storage company Brocade has seen its second quarter profits virtually disappear as the company recovers from its acquisition of McData. It announced net income for Q2 of just $0.8m (400,000), down 98 per cent from first quarter net incomes of $33m (16m).

Brocade chief executive Michael Klayko said that the fundamental of the business remained "strong".

"I am extremely pleased with our execution this quarter. We will continue to execute on our strategy of growth and diversification and we remain committed to delivering exceptional results," he said.

Revenues for the firm in the second quarter were $345.3m (174m), which represented an increase of 54 per cent from $224.2m (112m) reported in the first quarter of the company's fiscal year 2007 and increased 89 per cent from $182.7m (91m) reported in the second quarter of fiscal year 2006.