Oppenheimer Maintains a 'Perform' on Brocade (BRCD); Finally Delivers; Waiting for Consistency

Oppenheimer maintains a 'Perform' on Brocade (NASDAQ: BRCD).

Oppenheimer analyst says, "Brocade delivered strong FY4Q11 results with revenues and EPS beating consensus estimates and guided above expectations for next quarter. Both Ethernet and SAN revenues grew sequentially, and the company made a large stock repurchase (9% of outstanding shares). Brocade benefited from surprisingly strong demand in EMEA and a bounceback from the Federal vertical, which closed its fiscal year-end in September. However, we expect Federal spending to decrease next quarter, and we are concerned with EMEA due to the macro environment. In addition, while we feel Brocade is taking the appropriate steps to grow its Ethernet business (VCS, building channel), competition continues to rise. Thus, we remain on the sidelines until we see more consistent execution."

For an analyst ratings summary and ratings history on Brocade click here. For more ratings news on Brocade click here.

Shares of Brocade closed at $4.48 yesterday.

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