Brocade Communications Systems, Inc. is a provider of infrastructure for storage area networks (SANs), offering a product family of Fibre Channel fabric switches that provide an intelligent networking foundation for SANs.

Brocade Communications Systems, Inc. est un fournisseur d''infrastructure pour des réseaux de zone de stockage (SANs), offrant une famille de produit des commutateurs de tissu de la Manche de fibre qui fournissent une base intelligente de gestion de réseau pour SANs
http://www.brocade.com/

Brocade Reports Second Quarter Fiscal Year 2006 Results 
Second Quarter Revenues a Record $182.7 Million; Increase 7% Sequentially and 26% Year-Over-Year
SAN JOSE, Calif., May 18, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Brocade Communications Systems, Inc. (Brocade(R)) (Nasdaq: BRCD) today reported financial results for its second quarter of fiscal year 2006 (Q2 06), which ended April 29, 2006. Net revenues for Q2 06 were a record $182.7 million. Revenues for the quarter increased 7 percent from $170.1 million reported in the first quarter of fiscal year 2006 (Q1 06) and increased 26 percent from $144.8 million reported in the second quarter of fiscal year 2005 (Q2 05). 

Reporting on a GAAP basis, net income for Q2 06 was $13.5 million, or $0.05 per share basic and diluted. This compares to GAAP net income for Q1 06 of $9.7 million, or $0.04 per share basic and diluted, and GAAP net income for Q2 05 of $21.4 million, or $0.08 per share basic and diluted. 

Non-GAAP net income for Q2 06 was $26.4 million, or $0.10 per share basic and diluted, as compared to non-GAAP net income for Q1 06 of $25.9 million, or $0.10 per share basic and diluted, and non-GAAP net income for Q2 05 of $19.1 million, or $0.07 per share basic and diluted. Non-GAAP net income for Q2 06 excludes net stock-based compensation expenses, amortization of stock compensation expense related to acquisitions, amortization of intangible assets, costs associated with facilities lease losses, compensation expense related to acquisitions, costs associated with the Company's ongoing SEC investigation, and associated tax effects of non-GAAP adjustments. Non-GAAP net income for Q1 06 excludes net stock-based compensation expenses, amortization of stock compensation expense related to acquisitions, costs associated with the completed internal review and ongoing SEC investigation, provision for an estimated settlement with the SEC, and associated tax effects of non-GAAP adjustments. Non-GAAP net income for Q2 05 excludes net stock-based compensation benefits, gains related to repurchases of convertible subordinated debt, gains on dispositions of marketable investments, amortization of stock compensation expense related to acquisitions, a reduction of previously recorded restructuring costs, costs associated with internal review and the ongoing SEC investigation, severance expense included in general and administrative, and associated tax effects of non-GAAP adjustments. A reconciliation between GAAP and non-GAAP information is contained in the tables below. 

"Our results for the second quarter of fiscal 2006 were outstanding and exceeded our expectations for what is historically a seasonally soft quarter," said Michael Klayko, Brocade Chief Executive Officer. "We saw balanced strength across all aspects of our core SAN business and continued progress in our newer Services and Tapestry initiatives." 

Certain reclassifications have been made to prior year balances in order to conform to the current year presentation. 

Q2 06 Financial Highlights
     --  Q2 06 cash flow from operations was $55.7 million, compared to
         $32.0 million in Q1 06 and $48.5 million in Q2 05.
     --  In Q2 06 the Company used approximately $60.0 million in cash for the
         acquisition of NuView, and approximately $14.9 million to repurchase
         2.5 million shares of Company stock under the Company's $100 million
         stock buyback authorization.
     --  Cash and investments, including restricted short-term investments,
         net of the Company's convertible debt as of the end of Q2 06 were
         $502.1 million, compared to $510.2 million as of the end of Q1 06 and
         $467.8 million as of the end of Q2 05.
     --  Day sales outstanding in accounts receivable for Q2 06 were 38 days,
         compared with 41 days in Q1 06 and 55 days in Q2 05.
     --  For Q2 06, three customers, EMC, HP, and IBM, each accounted for 10
         percent or more of total revenues and in total represented
         approximately 70 percent of total revenues.

     --  As of April 29, 2006, the Company had 1,316 employees, compared with
         1,208 employees as of January 28, 2006 and 1,065 employees as of
         April 30, 2005.