Despite takeover rumors and new competitive threats, Brocade managed to end its fiscal year in solid shape.
Brocade (NASDAQ: BRCD) finished its fiscal year on a strong note despite a global recession, new competitive challenges and rumors that it was up for sale (see Could Brocade and NetApp Get Acquired? and Analysts Expect Strong Earnings from NetApp, Brocade).
As it turns out, the merger rumors are false, the storage switch and networking company claimed on its earnings call last week, with executives saying that Brocade intends to stick with its plans for growing the business.
During a call with analysts, Brocade CEO Michael Klayko refuted rumors that the company is up for sale, and challenged the notion that the recent acquisition of 3Com by HP (NYSE: HPQ) is a competitive threat.
“We have got a very bright future,” Klayko said. “The fact is that we spent the last five years planning and putting all the different pieces in place to execute on a very, very large infrastructure build-out opportunity going forward. [A company takeover] just doesn’t make a lot of sense … so I want to put that one to bed right upfront.”
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