On Monday, network equipment manufacturer Brocade Communications Systems Inc. posted much higher than expected quarterly profits, beating all estimates pegged by analysts and economists, despite rising concerns about tough competition expected to be posed by a series of mergers and acquisitions undertaken by rivals.
The company reported earnings of $33.6 million, or 7 cents a share, for the current fiscal year's fourth quarter, and although this is a fall from last year's figures of $35.6 million, or 9 cents a share, for the same period, these have managed to beat the expectation shared by analysts.
"Our planning assumption is that IT spending will continue to recover during the first half of 2010 and approach normalcy in the second half of 2010", shared the company in an official statement, while asserting that the credit environment has definitely improved after a one year lull.
Brocade's quarterly revenue recorded a rise to $521.8 Million as compared to the $493.3 Million recorded for the previous quarter. Shares of the company fell by 21 cents, or 2.7%, to close at $7.80, before the earnings were made public, and since then have fallen by a total of 16%.