Brocade revenue dips 7% amid uncertainty due to Broadcom acquisition

Brocade
Brocade has posted revenue of $549 million (–7 percent) in its third fiscal quarter, ended July 29, 2017.

Brocade said SAN product revenue fell 2 percent to $276 million primarily due to 6 percent dip in fixed-configuration sale and 7 percent drop in embedded switch sales. Director sales increased 5 percent.

Brocade’s SAN product business faced tough competition from alternative storage networking technologies and architectures, and customer uncertainty surrounding the pending acquisition of Brocade by Broadcom.
Brocade revenue Q3 2017

Brocade’s IP Networking product revenue fell 17 percent to $174 million, including $85 million of product revenue from Ruckus Wireless. The decrease in Brocade’s IP Networking product revenue was primarily due to lower wired switch and router revenue partially offset by higher wireless revenue associated with the May 27, 2016 acquisition of Ruckus Wireless.

The increase in wireless revenue was primarily due to including only approximately two months of wireless revenue in the prior-year period.

The declines in wired switch and router revenue were due to Broadcom’s planned divestiture of Brocade’s IP Networking business.