Brocade Reports Fiscal Q2 2017 Results
Tweet
Share
E-mailGet Alerts BRCD Hot Sheet
Join SI Premium – FREE
SAN JOSE, CA -- (Marketwired) -- 05/25/17 -- Brocade® (NASDAQ: BRCD) today reported financial results for its second fiscal quarter, ended April 29, 2017. Brocade reported second quarter revenue of $553 million, up 6% year-over-year and down 5% quarter-over-quarter. The Company reported a GAAP diluted loss per share of $0.03, down from diluted earnings per share (EPS) of $0.11 in Q2 2016 and down from a diluted loss per share of $0.01 in Q1 2017. Non-GAAP diluted EPS was $0.10 for Q2 2017, down from non-GAAP diluted EPS of $0.22 and $0.16 in Q2 2016 and Q1 2017, respectively. The year-over-year decline in both GAAP and non-GAAP diluted EPS is primarily due to lower SAN and wired IP Networking revenue and the incremental operating expenses associated with the Ruckus Wireless acquisition. In addition, the year-over-year decline in GAAP diluted EPS also reflects the inclusion of certain acquisition-related expenses that negatively impacted Q2 2017 results. The sequential decline in the GAAP diluted loss per share and non-GAAP diluted EPS is primarily due to seasonally lower SAN revenue.
In light of the pending acquisition of Brocade by Broadcom Limited, Brocade will not provide fiscal Q3 2017 guidance and will not hold a conference call to discuss these financial results.
Key Financial Metrics:
Q2 2017 Q2 2017
vs. Q1 vs. Q2
Q2 2017 Q1 2017 Q2 2016 2017 2016
---------- --------- --------- ---------- ----------
Revenue $ 553M $ 581M $ 523M (5%) 6%
GAAP earnings (loss) per
share--diluted $ (0.03) $ (0.01) $ 0.11 93% (126%)
Non-GAAP EPS--diluted $ 0.10 $ 0.16 $ 0.22 (37%) (52%)
GAAP gross margin 62.0% 63.1% 66.9% (1.1) pts (4.9) pts
Non-GAAP gross margin 65.3% 66.6% 68.2% (1.3) pts (2.9) pts
GAAP operating margin (1.1)% 0.7% 15.8% (1.8) pts (16.9) pts
Non-GAAP operating
margin 11.1% 15.5% 22.4% (4.4) pts (11.3) pts
Please see important note of explanation about the use of non-GAAP financial measures below, including a detailed reconciliation between GAAP and non-GAAP information in the tables included herein.
Highlights:
- SAN product revenue of $282 million was down 5% year-over-year. The decline was primarily the result of lower director and embedded switch sales, which declined 6% and 12% year-over-year, respectively. The year-over-year revenue performance was impacted by competition from alternative storage networking technologies and architectures, and customer uncertainty surrounding the pending acquisition of Brocade by Broadcom. Sequentially, SAN product revenue decreased 8%, consistent with historical seasonal revenue trends, with fixed-configuration and embedded switch revenues down 15% and 18%, respectively, partially offset by a 4% increase in director revenue.
- IP Networking product revenue of $173 million, including $71 million of product revenue from Ruckus Wireless, was up 32% year-over-year. The increase was primarily due to added wireless revenue following the acquisition of Ruckus Wireless in the third quarter of fiscal year 2016, partially offset by lower wired switch and router revenue, due in part to Broadcom's planned divestiture of Brocade's IP Networking business. Sequentially, IP Networking product revenue was flat.
Board Declares Dividend:
- The Brocade Board of Directors has declared a regular third fiscal quarter cash dividend of $0.055 per share of the Company's common stock. The dividend payment will be made on July 5, 2017, to stockholders of record at the close of market on June 12, 2017.
Other Q2 2017 product, customer, and partner announcements are available at http://newsroom.brocade.com/.
Brocade (www.brocade.com) 130 Holger Way, San Jose, CA 95134 T. 408.333.8000 F. 408.333.8101
Financial Highlights and Additional Financial Information
Q2 2017 Q1 2017 Q2 2016
-------- -------- --------
Routes to market as a % of total net revenues:
OEM revenues 55% 57% 63%
Channel/Direct revenues 45% 43% 37%
10% or greater customer revenues 27% 19% 30%
Geographic split as a % of total net revenues
(1):
Domestic revenues 50% 47% 53%
International revenues 50% 53% 47%
Segment split as a % of total net revenues:
SAN product revenues 51% 53% 57%
IP Networking product revenues 31% 30% 25%
Global Services revenues 18% 17% 18%
SAN business revenues (2) 60% 62% 67%
IP Networking business revenues (2) 40% 38% 33%
Additional information: Q2 2017 Q1 2017 Q2 2016
---------- ---------- ---------
GAAP net income (loss) attributable to
Brocade $ (11)M $ (6)M $ 43M
Non-GAAP net income attributable to
Brocade $ 43M $ 68M $ 89M
GAAP operating income (loss) $ (6)M $ 4M $ 83M
Non-GAAP operating income $ 61M $ 90M $ 117M
GAAP effective tax rate 44.2% 45.6% 41.6%
Non-GAAP effective tax rate 16.1% 13.6% 20.8%
Cash and cash equivalents $ 1,300M $ 1,230M $ 1,428M
Capital expenditures $ 8M $ 12M $ 19M
Cash provided by (used in) operations $ 108M $ (3)M $ 112M
Days sales outstanding 43 days 41 days 36 days
Employees at end of period 5,524 5,823 4,724
SAN port shipments 0.8M 0.9M 0.8M
Share repurchases $ - $ - $ 36.4M
Please see important note of explanation about the use of non-GAAP financial measures below, including a detailed reconciliation between GAAP and non-GAAP information in the tables included herein.
(1) Revenues are attributed to geographic areas based on known product
delivery location. Since some OEM partners take delivery of Brocade
products domestically and then ship internationally to their end users,
the percentage of international revenues based on end-user location
would likely be higher.
(2) SAN and IP Networking business revenues include hardware and software
product, support, and services revenues.
Non-GAAP Financial Measures
To supplement financial information presented on a GAAP basis, Brocade provides information presented on a non-GAAP basis. These non-GAAP financial measures include non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, non-GAAP operating income, non-GAAP tax rate, non-GAAP net income, and non-GAAP EPS. These non-GAAP financial measures are not computed in accordance with, or as an alternative to, financial information presented on a GAAP basis. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measures. The most directly comparable GAAP information and a reconciliation between the GAAP and non-GAAP amounts is provided in the tables at the end of this press release.
Management believes that the non-GAAP financial measures used in this press release allow management to gain a better understanding of Brocade's comparative operating performance, both from period to period and relative to its competitors. These non-GAAP financial measures also help with the determination of Brocade's baseline performance before gains, losses or charges that are considered by management to be outside of ongoing operating results. Accordingly, management uses these non-GAAP financial measures for planning and forecasting of future periods and in making decisions regarding operations and the allocation of resources.
Management believes these non-GAAP financial measures, when read in conjunction with Brocade's GAAP financials, provide useful information to investors by offering:
- the ability to make more meaningful period-to-period comparisons of Brocade's ongoing operating results;
- the ability to make more meaningful comparisons of Brocade's operating performance relative to its competitors;
- the ability to better identify trends in Brocade's underlying business and to perform related trend analyses; and
- a better understanding of how management plans and measures Brocade's underlying business.
In determining non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, non-GAAP operating income, non-GAAP tax rate, non-GAAP net income and non-GAAP EPS, management excludes certain gains or losses and benefits or costs that are the result of events that arise outside the ordinary course of Brocade's continuing operations. Management believes that it is appropriate to evaluate Brocade's operating performance by excluding those items that are not indicative of ongoing operating results or limit comparability. Such items include, but are not limited to: (i) impact to cost of revenues from purchase accounting adjustments to inventory; and (ii) acquisition, divestiture, and integration costs.
Management also excludes the following non-cash charges in determining these non-GAAP financial measures: (i) stock-based compensation expense; (ii) amortization of purchased intangible assets; and (iii) non-cash interest expense related to the convertible debt.
Management believes that the exclusion of stock-based compensation allows for more accurate comparisons of Brocade's operating results to Brocade's peer companies. This is due to the varying use of valuation methodologies and subjective assumptions and the variety of award types. In addition, the exclusion of the expense associated with the amortization of acquisition-related intangible assets is appropriate because a significant portion of the purchase price for acquisitions may be allocated to intangible assets that have short lives, and the exclusion of amortization expense allows comparisons of operating results that are consistent over time for Brocade's newly acquired and long-held businesses. In connection with the convertible debt, under the relevant accounting guidance, a non-cash interest expense is recognized for the convertible debt as an imputed interest expense for the conversion feature. Management believes excluding the non-cash interest expense related to the convertible debt from its non-GAAP financial measures is useful for investors because the expense does not represent a cash outflow in the respective reporting periods and is not indicative of ongoing operating performance.
Finally, management believes that it is appropriate to exclude the tax effects of the items noted above and (i) tax charges and benefits related to unusual or infrequent intercompany transactions; (ii) tax charges or benefits that are a result of the implementation of restructuring plans; and (iii) tax charges resulting from the integration of intellectual property assets from acquisitions. Management believes that the exclusion of these items from its non-GAAP tax provision provides a more meaningful measure of Brocade's operational performance of non-GAAP net income and non-GAAP EPS.
Limitations: These non-GAAP financial measures have limitations because they do not include all items of income and expense that impact the company. In addition, these non-GAAP financial measures may not be comparable to similar measurements reported by other companies. Management compensates for these limitations by relying primarily on its GAAP results and using non-GAAP financial measures only supplementally. Management also provides robust and detailed reconciliations of each non-GAAP financial measure to its most directly comparable GAAP measure, and management encourages investors to review carefully those reconciliations.
Forward-Looking Statements
This press release contains forward-looking statements including, but not limited to, statements regarding Brocade's financial results, goals, plans, strategy, business outlook and prospects. These statements are based on current expectations as of the date of this press release and involve a number of risks, uncertainties and assumptions that may cause actual results to differ significantly. The risks, uncertainties and assumptions include, but are not limited to: the effect on Brocade of increasing market competition and changes in the industry; the impact on Brocade of conditions in the market for Storage Area Networking products; Brocade's ability to execute on its sales strategy and plans for future operations; the impact on Brocade of macroeconomic trends and events and changes in IT spending levels; Brocade's ability to introduce and achieve market acceptance of new products and support offerings on a timely basis; risks associated with Brocade's international operations; and integration and other risks associated with acquisitions, divestitures and strategic investments. The risks, uncertainties and assumptions also include, but are not limited to: the risk that the proposed acquisition by Broadcom may not be completed in a timely manner or at all, which may adversely affect Brocade's business and the price of the common stock of Brocade; the failure to satisfy any of the conditions to the consummation of the proposed transaction, including the receipt of certain governmental and regulatory approvals; the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement; the effect of the announcement or pendency of the proposed transaction on Brocade's business relationships, operating results and business generally; risks that the proposed transaction disrupts current plans and operations and the potential difficulties in employee retention as a result of the proposed transaction; risks related to diverting management's attention from Brocade's ongoing business operations; the outcome of legal proceedings that have been and may in the future be instituted against Brocade related to the merger agreement or the proposed transaction; and unexpected costs, charges or expenses resulting from the proposed transaction. Certain of these and other risks are set forth in more detail in Brocade's Form 10-Q for the fiscal quarter ended January 28, 2017, and in Brocade's Annual Report on Form 10-K for the fiscal year ended October 29, 2016. Brocade does not assume any obligation to update or revise any such forward-looking statements whether as the result of new developments or otherwise.
About Brocade
Brocade (NASDAQ: BRCD) networking solutions help the world's leading organizations turn their networks into platforms for business innovation. With solutions spanning public and private data centers to the network edge, Brocade is leading the industry in its transition to the New IP network infrastructures required for today's era of digital business. (www.brocade.com)
Brocade and the B-wing symbol are registered trademarks of Brocade Communications Systems, Inc., in the United States and many other countries. Other brands, products, or service names mentioned herein may be trademarks of Brocade or others. Additional information about Brocade's trademarks is available at: http://www.brocade.com/en/legal/brocade-Legal-intellectual-property/brocade-legal-trademarks.html.
© 2017 Brocade Communications Systems, Inc. All Rights Reserved.
BROCADE COMMUNICATIONS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
---------------------- ----------------------
April 29, April 30, April 29, April 30,
2017 2016 2017 2016
---------- ---------- ---------- ----------
(In thousands, except per share amounts)
Net revenues:
Product $ 455,107 $ 428,193 $ 935,724 $ 909,360
Service 97,646 95,113 198,492 188,230
---------- ---------- ---------- ----------
Total net revenues 552,753 523,306 1,134,216 1,097,590
---------- ---------- ---------- ----------
Cost of revenues:
Product 164,738 132,208 331,393 276,305
Service 45,255 40,787 92,940 82,159
---------- ---------- ---------- ----------
Total cost of revenues 209,993 172,995 424,333 358,464
---------- ---------- ---------- ----------
Gross margin 342,760 350,311 709,883 739,126
Operating expenses:
Research and development 119,545 89,263 243,048 182,520
Sales and marketing 172,315 148,933 352,516 300,760
General and administrative 31,016 22,791 64,513 45,220
Amortization of intangible
assets 7,582 902 15,176 1,804
Acquisition, divestiture,
and integration costs 18,236 5,757 36,273 5,757
Restructuring and other
related benefits - - - (566)
---------- ---------- ---------- ----------
Total operating expenses 348,694 267,646 711,526 535,495
---------- ---------- ---------- ----------
Income (loss) from
operations (5,934) 82,665 (1,643) 203,631
Interest expense (15,949) (9,955) (31,442) (19,820)
Interest and other income,
net 2,098 1,091 2,556 1,760
---------- ---------- ---------- ----------
Income (loss) before income
tax (19,785) 73,801 (30,529) 185,571
Income tax expense (benefit) (8,753) 30,716 (13,653) 48,840
---------- ---------- ---------- ----------
Net income (loss) $ (11,032) $ 43,085 $ (16,876) $ 136,731
Less: Net loss attributable
to noncontrolling interest $ (65) $ -- $ (228) $ --
---------- ---------- ---------- ----------
Net income (loss)
attributable to Brocade
Communications Systems,
Inc. $ (10,967) $ 43,085 $ (16,648) $ 136,731
========== ========== ========== ==========
Net income (loss) per share-
-basic attributable to
Brocade Communications
Systems, Inc. stockholders $ (0.03) $ 0.11 $ (0.04) $ 0.34
========== ========== ========== ==========
Net income (loss) per share-
-diluted attributable to
Brocade Communications
Systems, Inc. stockholders $ (0.03) $ 0.11 $ (0.04) $ 0.33
========== ========== ========== ==========
Shares used in per share
calculation--basic 408,589 400,554 406,792 404,228
========== ========== ========== ==========
Shares used in per share
calculation--diluted 408,589 408,748 406,792 411,917
========== ========== ========== ==========
Cash dividends declared per
share $ 0.055 $ 0.045 $ 0.110 $ 0.090
========== ========== ========== ==========
BROCADE COMMUNICATIONS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
Three Months Ended Six Months Ended
-------------------- --------------------
April 29, April 30, April 29, April 30,
2017 2016 2017 2016
--------- --------- --------- ---------
(In thousands)
Net income (loss) $ (11,032) $ 43,085 $ (16,876) $ 136,731
Other comprehensive income and
loss, net of tax:
Unrealized gains (losses) on
cash flow hedges:
Change in unrealized gains and
losses 576 1,964 167 (336)
Net gains and losses
reclassified into earnings 251 724 436 1,350
--------- --------- --------- ---------
Net unrealized gains on cash
flow hedges 827 2,688 603 1,014
Foreign currency translation
adjustments 2,023 2,070 663 (133)
--------- --------- --------- ---------
Total other comprehensive income 2,850 4,758 1,266 881
--------- --------- --------- ---------
Total comprehensive income (loss) $ (8,182) $ 47,843 $ (15,610) $ 137,612
Less: Net loss attributable to
noncontrolling interest (65) -- (228) --
Less: Total other comprehensive
loss attributable to
noncontrolling interest (4) -- (72) --
--------- --------- --------- ---------
Total comprehensive income (loss)
attributable to Brocade
Communications Systems, Inc. $ (8,113) $ 47,843 $ (15,310) $ 137,612
========= ========= ========= =========
BROCADE COMMUNICATIONS SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
April 29, October 29,
2017 2016
----------- -----------
(In thousands, except
par value)
ASSETS
Current assets:
Cash and cash equivalents $ 1,299,660 $ 1,257,075
Accounts receivable, net of allowances for
doubtful accounts of $1,965, and $1,736 as of
April 29, 2017, and October 29, 2016,
respectively 260,343 284,344
Inventories 78,467 69,355
Prepaid expenses and other current assets 69,100 62,236
----------- -----------
Total current assets 1,707,570 1,673,010
Property and equipment, net 434,795 455,326
Goodwill 2,291,246 2,295,184
Core/developed technology intangible assets, net 227,199 248,938
Other intangible assets, net 182,152 200,840
Non-current deferred tax assets 27,995 12,736
Other assets 46,273 53,777
----------- -----------
Total assets $ 4,917,230 $ 4,939,811
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 111,980 $ 128,685
Accrued employee compensation 163,949 154,165
Deferred revenue 214,103 221,940
Current portion of long-term debt 76,765 76,692
Other accrued liabilities 121,805 113,170
----------- -----------
Total current liabilities 688,602 694,652
Long-term debt, net of current portion 1,472,501 1,502,063
Non-current deferred revenue 87,352 90,051
Non-current income tax liability 91,964 102,100
Other non-current liabilities 4,538 5,370
----------- -----------
Total liabilities 2,344,957 2,394,236
----------- -----------
Commitments and contingencies
Stockholders' equity:
Brocade stockholders' equity:
Preferred stock, $0.001 par value, 5,000 shares
authorized, no shares issued and outstanding -- --
Common stock, $0.001 par value, 800,000 shares
authorized:
Issued and outstanding: 409,865 and 401,748
shares as of April 29, 2017, and October 29,
2016, respectively 410 402
Additional paid-in capital 1,601,809 1,514,730
Accumulated other comprehensive loss (26,147) (27,413)
Retained earnings 993,767 1,055,194
----------- -----------
Total Brocade stockholders' equity 2,569,839 2,542,913
Noncontrolling interest 2,434 2,662
----------- -----------
Total stockholders' equity $ 2,572,273 $ 2,545,575
----------- -----------
Total liabilities and stockholders' equity $ 4,917,230 $ 4,939,811
=========== ===========
BROCADE COMMUNICATIONS SYSTEMS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
------------------------
April 29, April 30,
2017 2016
----------- -----------
(In thousands)
Cash flows from operating activities:
Net income (loss) $ (16,876) $ 136,731
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Excess tax benefits from stock-based
compensation (2,220) (10,987)
Depreciation and amortization 82,643 45,839
Loss on disposal of property and equipment 464 437
Amortization of debt issuance costs and debt
discount 10,511 8,704
Provision (recovery) for doubtful accounts
receivable and sales allowances 2,320 (1,083)
Non-cash purchase accounting adjustments to
inventory 3,921 --
Non-cash stock-based compensation expense 70,745 48,833
Changes in assets and liabilities, net of
acquisitions:
Accounts receivable 21,681 32,051
Inventories (2,177) (424)
Prepaid expenses and other assets 602 (1,882)
Deferred tax assets 48 (74)
Accounts payable (24,986) (5,127)
Accrued employee compensation (9,858) (21,136)
Deferred revenue (11,536) (11,715)
Other accrued liabilities (19,708) 5,500
Restructuring liabilities (330) (1,035)
----------- -----------
Net cash provided by operating activities 105,244 224,632
----------- -----------
Cash flows from investing activities:
Purchases of non-marketable equity and debt
investments -- (2,000)
Purchases of property and equipment (19,851) (42,425)
Net cash paid in connection with acquisitions -- (8,061)
Proceeds from collection of note receivable 250 250
----------- -----------
Net cash used in investing activities (19,601) (52,236)
----------- -----------
Cash flows from financing activities:
Payment of principal related to the term loan (40,000) --
Payment of principal related to capital leases -- (197)
Common stock repurchases -- (180,848)
Proceeds from issuance of common stock 39,693 20,512
Payment of cash dividends to stockholders (44,780) (36,445)
Excess tax benefits from stock-based compensation 2,220 10,987
----------- -----------
Net cash used in financing activities (42,867) (185,991)
----------- -----------
Effect of exchange rate fluctuations on cash and
cash equivalents (191) 356
----------- -----------
Net increase (decrease) in cash and cash
equivalents 42,585 (13,239)
Cash and cash equivalents, beginning of period 1,257,075 1,440,882
----------- -----------
Cash and cash equivalents, end of period $ 1,299,660 $ 1,427,643
=========== ===========
BROCADE COMMUNICATIONS SYSTEMS, INC.
RECONCILIATION BETWEEN GAAP AND NON-GAAP FINANCIAL MEASURES
(Unaudited)
Three Months Ended
--------------------------------------
April 29, January 28, April 30,
2017 2017 2016
----------- ----------- -----------
(In thousands, except per share
amounts)
Non-GAAP adjustments
Stock-based compensation expense
included in cost of revenues $ 3,234 $ 5,650 $ 3,531
Amortization of intangible assets
expense included in cost of
revenues 12,679 13,060 3,193
Purchase accounting adjustments to
inventory 2,384 1,537 -
----------- ----------- -----------
Total gross margin impact from
non-GAAP adjustments 18,297 20,247 6,724
Stock-based compensation expense
included in research and
development 6,631 12,074 5,123
Stock-based compensation expense
included in sales and marketing 9,779 16,815 11,052
Stock-based compensation expense
included in general and
administrative 6,645 10,975 5,083
Amortization of intangible assets
expense included in operating
expenses 7,582 7,594 902
Acquisition, divestiture, and
integration costs 18,236 18,037 5,757
----------- ----------- -----------
Total operating income impact
from non-GAAP adjustments 67,170 85,742 34,641
Convertible debt interest 4,018 3,968 3,824
Effects of certain intercompany
transactions on the tax provision - - 13,670
Income tax effect of non-GAAP
adjustments (17,029) (15,639) (6,329)
----------- ----------- -----------
Total net income impact from non-
GAAP adjustments $ 54,159 $ 74,071 $ 45,806
=========== =========== ===========
Gross margin reconciliation
GAAP gross margin $ 342,760 $ 367,123 $ 350,311
Total gross margin impact from non-
GAAP adjustments 18,297 20,247 6,724
----------- ----------- -----------
Non-GAAP gross margin $ 361,057 $ 387,370 $ 357,035
=========== =========== ===========
GAAP gross margin, as a percentage
of total net revenues 62.0% 63.1% 66.9%
Non-GAAP gross margin, as a
percentage of total net revenues 65.3% 66.6% 68.2%
Operating income reconciliation
GAAP operating income (loss) $ (5,934) $ 4,291 $ 82,665
Total operating income impact from
non-GAAP adjustments 67,170 85,742 34,641
----------- ----------- -----------
Non-GAAP operating income $ 61,236 $ 90,033 $ 117,306
=========== =========== ===========
GAAP operating income (loss), as a
percentage of total net revenues (1.1)% 0.7% 15.8%
Non-GAAP operating income, as a
percentage of total net revenues 11.1% 15.5% 22.4%
Net income (loss) and net income
(loss) per share attributable to
Brocade reconciliation
Net income (loss) attributable to
Brocade on a GAAP basis $ (10,967) $ (5,681) $ 43,085
Total net income impact from non-
GAAP adjustments 54,159 74,071 45,806
----------- ----------- -----------
Non-GAAP net income attributable
to Brocade $ 43,192 $ 68,390 $ 88,891
=========== =========== ===========
GAAP net income (loss) per share--
basic attributable to Brocade $ (0.03) $ (0.01) $ 0.11
Total impact on net income (loss)
per share--basic from non-GAAP
adjustments 0.14 0.18 0.11
----------- ----------- -----------
Non-GAAP net income per share--
basic attributable to Brocade $ 0.11 $ 0.17 $ 0.22
=========== =========== ===========
GAAP net income (loss) per share--
diluted attributable to Brocade $ (0.03) $ (0.01) $ 0.11
Total impact on net income (loss)
per share--diluted from non-GAAP
adjustments 0.13 0.17 0.11
----------- ----------- -----------
Non-GAAP net income per share--
diluted attributable to Brocade $ 0.10 $ 0.16 $ 0.22
=========== =========== ===========
Shares used in GAAP and non-GAAP
per share calculation--basic 408,589 404,995 400,554
=========== =========== ===========
Shares used in GAAP per share
calculation--diluted 408,589 404,995 408,748
=========== =========== ===========
Shares used in non-GAAP per share
calculation--diluted 419,614 415,861 408,748
=========== =========== ===========
Effective tax rate reconciliation
GAAP income (loss) before income
tax (19,785) (10,744) 73,801
Total operating income impact from
non-GAAP adjustments 67,170 85,742 34,641
Convertible debt interest 4,018 3,968 3,824
----------- ----------- -----------
Non-GAAP income before income tax 51,403 78,966 112,266
GAAP income tax expense (benefit) (8,753) (4,900) 30,716
Effects of certain intercompany
transactions on the tax provision - - (13,670)
Income tax effect of non-GAAP
adjustments 17,029 15,639 6,329
----------- ----------- -----------
Non-GAAP income tax expense 8,276 10,739 23,375
GAAP income (loss) before income
tax (19,785) (10,744) 73,801
GAAP income tax expense (benefit) (8,753) (4,900) 30,716
----------- ----------- -----------
GAAP effective tax rate 44.2% 45.6% 41.6%
=========== =========== ===========
Non-GAAP income before income tax 51,403 78,966 112,266
Non-GAAP income tax expense 8,276 10,739 23,375
----------- ----------- -----------
Non-GAAP effective tax rate 16.1% 13.6% 20.8%
=========== =========== ===========
BROCADE CONTACTS Media Relations Ed Graczyk Tel: 408-333-1836 [email protected] Investor Relations Michael Iburg Tel: 408-333-0233 [email protected]
Source: Brocade
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Stay long AI-capex winners into the peak, Stifel says despite bubble fears
- Benchmark Reiterates Hold Rating on Old Dominion Freight Line (ODFL) as 'Quality Largely Priced in'
- SpaceX bond sale draws $89 billion in investor demand
Create E-mail Alert Related Categories
Press ReleasesRelated Entities
Dividend, Earnings, Definitive AgreementSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
