Brocade said its revenue decreased 4 percent to $565 million in its first fiscal quarter ended January 25, 2014.
Lloyd Carney, CEO of Brocade, said: “Our performance was driven by the strength of our Storage Area Networking (SAN) business as customers continue to adopt Gen 5 Fiber Channel networks for their highly virtualized data centers and high-performance storage environments, including Solid State Disks (SSDs).”
Like its bigger rival Cisco, Brocade does not want to shift to a new strategy.
“While the overall IP Networking business declined year-over-year, we achieved our outlook for the quarter. This is a transformational year for Brocade and we remain committed to our mission to be the network provider of choice to the world’s data centers,” Carney said.
Brocade said its SAN business revenue, including products and services, dipped 1 percent to $412 million. SAN business revenue grew sequentially across all product segments and performed better than the company’s outlook for Q1 2014.
Gen 5 Fibre Channel products represented approximately 71 percent of director and switch revenue in the quarter, higher than the 42 percent reported in Q1 2013 and 69 percent in Q4 2013.
IP Networking business revenue, including products and services, declined 11 percent to $153 million. The year-over-year and sequential decline was principally due to lower sales into the U.S. Federal government as well as lower non-Federal sales in the Americas region.
During Q1 2014, an estimated 59 percent of our IP Networking product revenue came from data center customers, a favorable shift in the mix of its IP business from an estimated 48 percent in Q1 2013 and 53 percent in Q4 2013.