Brocade beats by $0.05, reports revs in-line; guides Q4 EPS in-line, revs in-line
Reports Q3 (Jul) adj earnings of $0.27 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.22; revenues rose 1.2% year/year to $551.8 mln vs the $550.53 mln consensus. Co reported Q3 Non-GAAP gross margin of 68.6% vs 67.2% last year.
Co issues in-line guidance for Q4, sees EPS of $0.23-0.25 vs. $0.24 Capital IQ Consensus Estimate; sees Q4 revs of $565-585 mln vs. $573.73 mln Capital IQ Consensus Estimate.
Guidance: "For Q4 15, we expect SAN revenue to be up 1% to 5% Qtr./Qtr....We typically see stronger buying patterns from our OEM partners in our fiscal Q4....We expect our Q4 15....IP Networking revenue to be up 6.5% to 11% Qtr./Qtr., principally driven by our IP growth initiatives....We expect our Global Services revenue to be flat to up 1% Qtr./Qtr....We expect Q4 15 non-GAAP gross margin to be between 67.5% to 68.5%"