Investing: Brocade, HP, Dell Top Expectations

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Quarterly earnings reports from Brocade, HP and Dell recently have all exceeded analysts’ predictions, with Brocade reaching an all-time record for revenue.

Brocade – fourth quarter results.

Brocade (BRCD)  announced fourth quarter and full fiscal year results Monday, with an all-time record of $550 million in quarterly revenues. Ethernet business revenue was a primary source for the gain with $171 million, up 14 percent quarter over quarter.  “We are pleased with our Q4 performance which drove record revenues, growth in our Ethernet business and a strong finish to fiscal 2010,” said Michael Klayko, CEO of Brocade. “Looking forward to FY11, we are particularly excited about Brocade’s successful launch of the industry’s first Ethernet fabric products and technologies, which we believe will serve as a catalyst for customers to rapidly migrate to virtualized data centers and cloud-optimized networks.”

Revenues for 2010 were $2,094,363, with a net income of $118,852.  In 2009 Brocade posted a net loss of $81,384. A highlight of their fiscal year was the June announcement of VCS – a virtual cluster switching technology that forms the basis of ‘Ethernet fabrics’ through cloud-optimized networking. The innovation focus outlined for 2011 builds on the success of the past year with Virtualization, cloud computing and Ethernet fabrics.

HP fourth quarter results.

HP (HPQ) announced financial results for its fourth quarter ending October 31, 2010, with net revenue of $33.3 billion, up 8 percent from he prior year period.  HP reported a 10 percent increase in fiscal 2010 net revenue at $126 billion.  “HP proved once again that it is able to execute given its market strengths and technology leadership,” said Léo Apotheker, HP president and chief executive officer. “I have seen firsthand that we have talented people who are focused on delivering value for our customers. Our market opportunity is vast, and I am confident that we will extend our leadership into the future.”

Outside of a 227 percent increase in HP Networking revenue due to the 3Com acquisition, Enterprise Storage and Servers (ESS) reported total revenue of $5.3 billion in the fourth quarter, up 25 percent.  HP estimates that 2011  revenue will be in the range of $132 billion to $133.5 billion.

Over the weekend HP demonstrated Enyo, a new JavaScript framework for building webOS applications at a Palm developer event in New York. Palm CEO Jon Rubinstein last week said that the company had lost a little momentum after being bought by Hewlett-Packard in April, but that things were back on track, and that the company has plans to expand webOS to a range of devices, including smartphones, printers, and tablets, and even more that he couldn’t talk about.

Dell reports third quarter earnings.

Dell reported third quarter results with revenue at $15.4 billion, led by global demand for all commercial products and services and a solid supply-chain execution.  Dell beat Wall Street estimates for the quarter, but warned that margins may narrow as sales shift to the consumer business during the holiday quarter.

“Dell is growing in the right areas, and I’m very excited about our momentum,” said Chairman and CEO Michael Dell. “Our strong results demonstrate that we are listening to customers and delivering what they want. It validates that our strategy to offer choice and efficiency at every level of the IT enterprise computing stack is taking hold, and we are more focused than ever to being a true partner – not merely a provider – to our customers.”

Data Center Knowledge recently looked at the Modular Data Center (MDC) and Dell’s assembly line for building this unique kind of data center.  Dave Ohara also investigated the Dell Data Center Solutions (DCS) customer list for who was working with them on large deployments.  On Friday Joyent announced availability of its SmartDataCenter cloud software solution for service providers at an event introducing the Dell Cloud Solution for Web Applications.

About the Author

John Rath is a veteran IT professional and regular contributor at Data Center Knowledge. He has served many roles in the data center, including support, system administration, web development and facility management.

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