Brocade revenue dips in all business areas

Brocade for telecoms
Networking major Brocade has reported poor revenue performance in all its business divisions — SAN and IP Networking — in the second quarter of fiscal 2016.

Brocade said its second quarter revenue fell 4 percent year on year and dipped 9 percent quarter on quarter to $523 million.

“Despite the challenging environment for both SAN and IP networking, Brocade had a productive second fiscal quarter,” said Lloyd Carney, CEO of Brocade.

Brocade has generated $297 million (–5 percent) revenue from SAN product due to softer demand. The company reported 6 percent drop in sales from Fibre Channel directors, 4 percent dip fixed-configuration switches and 9 percent decline in embedded server switches .

Brocade has generated $132 million (–9 percent) from IP Networking product due 33 percent drop in router sales. It gained 9 percent increase in sale of Ethernet switch. The decline was primarily the result of lower service provider and U.S. federal sales.

Brocade on April 4, 2016 announced its acquisition of Ruckus Wireless. The combined company is expected to be #1 in storage area networking, #1 in service provider Wi-Fi, #2 in data center networking, #3 in enterprise wireless LAN, and #3 in enterprise edge networking (in the U.S. and EMEA). The acquisition is expected to close in Brocade’s fiscal third quarter.

Brocade generated 53 percent revenue from the US and the balance 47 percent from international markets including India.

Brocade said 54 percent revenue came from data center, 38 percent from enterprise campus and 8 percent from carrier network (MAN/WAN).

The revenue contribution of SAN product was 57 percent, IP Networking product 25 percent, Global Services 18 percent, SAN business )67 percent and IP Networking business 33 percent, said Brocade in a statement.

Baburajan K

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