Brocade today confirmed its CEO, Mike Klayko, will step down from the role after seven years running the networking company.
Although the resignation has been announced, Klayko will stay in the job until a suitable replacement is found and the handover completed, meaning it could be months before he leaves his offices in San Jose.
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“Decisions like these are never easy, but I believe it is the right time,” he said. “The company is in a great position financially, and our product pipeline will continue to strengthen and clearly separate Brocade from other networking providers.
“Until a successor is identified, I remain focused on my role as CEO and on continuing to execute our strategy."
The departure was revealed on the same day as Brocade’s third quarter 2012 results. The firm reported a 10% increase on revenues year-on-year, rising from $503m in the same quarter of 2011 to just over $555m for the three months ending 28 July this year.
Whilst revenues from the storage business had fallen from the previous quarter – down 6% to $377.6m – the Ethernet division grew by 24% in the three month period, boasting revenues of $177.8m.
Klayko said he was pleased with the results, claiming the company had actually done better than management anticipated.
“With continued differentiation in our products and focused execution across our organisation, we were able to overcome many issues in the current challenging macroeconomic environment,” he said.
“As a result, our financial performance in the quarter exceeded our expectations for revenue, operating margin and earnings per share."