Brocade Communications Systems Inc BRCD
Q4 2012 Earnings Call Transcript

Transcript Call Date 11/19/2012

Operator: Good day and welcome to the Brocade Communications Systems, Inc. Fourth Quarter 2012 Earnings Conference Call. Currently, all participants are in a listen-only mode. Later we will conduct a question and answer session. Today's conference is being recorded.

At this time, I would like to turn the conference over to Rob Eggers.

Robert Eggers - IR: Thank you, Chivonne. Good afternoon and welcome to Brocade's Q4 and fiscal year 2012 earnings call. By now, you should have seen our press release and prepared comments which are available on our website The press release is also distributed by Marketwire and furnished to the SEC.

Before we take your questions, investors should note our comments today may include forward-looking statements regarding Brocade's financial results, plans, market opportunities and business outlook, which are only predictions and involve risks and uncertainties such that actual results may vary significantly. These and other risks are set forth in more detail in our Form 10-K for the fiscal year ended October 29, 2011, and in our Form 10-Q for the quarter ended July 28, 2012. These forward-looking statements reflect beliefs, assumptions, outlook, estimates, and predictions as of today and Brocade expressly assumes no obligation to update any such forward-looking statements.

In addition, this presentation may include various third-party estimates regarding the total available market for SAN and IP Networking as well as other measures which do not necessarily reflect the view of Brocade. Further, Brocade does not guarantee the accuracy or reliability of any such information or forecast.

This presentation includes non-GAAP financial measures. The most directly comparable GAAP information, and a reconciliation between the non-GAAP and GAAP figures are provided in our Q4 2012 press release, which has been furnished to the SEC on Form 8-K and in our slide presentation and prepared comments on our website

Here to take your questions are Mike Klayko, Brocade's CEO; Dan Fairfax, CFO; Dave Stevens, CTO and VP of Corporate Development; Jason Nolet, VP, Data Center Networking and Ken Cheng, VP of Routing, Application Delivery and Software Networking.

I will now turn the call over to CEO, Mike Klayko. Mike?

Michael Klayko - CEO: Thank you, Rob. Good afternoon everyone and thank you for joining us today. Before we take your questions Dan and I wanted to make a few comments about the quarter and fiscal 2012. Q4 was another great quarter for Brocade and a very strong ending for fiscal year 2012.

We broke a number of Company records including revenue, net income and operating cash flow, fueled by a highly innovative product portfolio, strong customer traction, and continued solid execution, we exceeded both our revenue and profitability guidance for the quarter.

We achieved record revenue of $578 million, an increase of 5% from prior year, driven by growth in our SAN and Ethernet switch products, led by our award-winning Ethernet fabric portfolio.

Further, both our non-GAAP gross margin and operating margin increased again in the fourth quarter, allowing us to outperform our target models. As such, we are very pleased to report non-GAAP earnings per share in the quarter of $0.17, an increase of $0.01 from the prior year and representing our fifth consecutive quarter of year-over-year EPS growth.

Read our Earnings Call Transcript disclaimer.
Add a Comment
E-mail me new replies.