Quarterly Revenues Outpace Sequential Growth of Large Networking Peers and Increase 31 Percent Year-Over-Year

Brocade today reported financial results for its fourth fiscal quarter and full fiscal year ended October 31, 2009. Brocade’s quarterly revenues increased 31 percent year-over-year to $521.8 million and annual revenues increased 33 percent year-over-year to over $1.95 billion.

“Fiscal 2009 was a transformational year as Brocade became one of only two end-to-end networking solutions providers in the industry,” said Michael Klayko, CEO of Brocade. “Brocade also delivered exceptionally strong year-over-year revenue growth and increased its account penetration in the Ethernet networking market while growing share in the storage networking market.”

Klayko continued, “In addition, Q4 saw tremendous momentum as we exceeded the Street’s consensus non-GAAP EPS estimates for the seventeenth consecutive quarter, delivered the fastest sequential revenue growth of any large networking vendor, and generated strong cash flows. Looking at 2010, we expect to continue our momentum as we execute our strategy of delivering the highest levels of performance, quality, innovation and choice to the IT market.”

Brocade management has posted prepared comments and slides on its Fiscal Q4 and 2009 results and Fiscal 2010 outlook at www.BRCD.com in addition to this press release. Brocade will host a live webcast conference call to answer questions from investors and analysts at 5:00 a.m. Pacific time on November 24. Questions may be also submitted in advance to This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Financial Highlights and Additional Financial Information

• Fiscal year 2009 revenue was $1,952.9 million, increasing 33% over fiscal year 2008.
• Q4 revenue was $521.8 million, increasing 31% year-over-year and 6% sequentially.
• Q4 total Storage Area Networking (SAN) port shipments were approximately 1.0 million.
• Q4 SAN Average Selling Price (ASP) declines were in the low single digits.
• Q4 effective GAAP tax rate was (24.9)%; non-GAAP effective tax-rate was 25.3%.
• Q4 Adjusted EBITDA was $130.6 million, increasing from $119.3 million in Q3.
• Q4 non-GAAP operating margin was 22.7%, increasing from 20.3% in Q3.