McDATA Revenues Up, Income Down
Storage networking vendor McDATA Corporation this week reported revenues of $86.6 million for its third quarter, a 30 percent increase over the same quater last year. In addition, Pro forma net income for the third quarter of 2001 was $3.0 million, compared to pro forma third quarter 2000 net income of $10.8 million.
"McDATA's strong revenue performance reflected solid growth in demand for McDATA's suite of core-to-edge enterprise solutions, including both hardware and software," said Jack McDonnell, Chairman and CEO of McDATA. "We continued to gain solid market traction with our recently-introduced Galaxy-class 6000 Series Director and 3000 Series switch products -- selling record units of each in the quarter."
According to McDATA, it generated positive operating cash flow in the third quarter and its balance sheet remained strong with no debt, cash and marketable securities totaling $300 million, and cash and total investment securities totaling $330 million at quarter-end.
"Demand remains strong for SANs and McDATA's comprehensive core-to-edge storage networking and management solutions. However, the events of September 11 and the corresponding economic retraction are resulting in the delay of some deployments and longer average sales cycles, which could adversely affect fourth quarter sales. While we are cautious in our current outlook, we believe that McDATA is well-positioned in this early-stage SAN market, a position that should only strengthen as the economy stabilizes and SAN growth accelerates," said McDonnell.