Brocade Communications Systems Inc, a network equipment manufacturer, beat the estimates of analysts with its third quarter earnings report. Brocade said the demand for the company's storage products was improving.
"We are seeing a rebound occurring in the broader storage market and believe that the recovery will strengthen for the remainder of this calendar year," Lloyd Carney, Brocade's Chief Executive, said through a statement. "The storage market continues to be softer than it was a year ago, but we are receiving positive indications from our partners that end-user demand is improving."
Brocade currently manufactures hardware and software. Its products could connect a company's storage system and servers. The merchandises were utilized in storage area networks so that huge corporations could easily manage their storage resources.
Brocade's Storage Area Networking business' revenue dropped by 2% in the third quarter but its overall revenue which fell 3% to USD536.6 million still beat the estimates of analysts. Brocade's net income tripled to USD118.7 million or 26 US cents for every share from USD43.3 million or 9 US cents per share in 2012. The company gained USD76.8 million during the third quarter since it won a patent infringement lawsuit against A10 Networks. Furthermore, Brocade reacquired around 18 million shares, worth over USD100 million.
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