US networking firm Brocade has announced its results for the third quarter of 2013, exceeding even its own expectations.
The company reported diminished revenues, falling from 3% year on year to $536.6m, describing its 6% drop in IP networking product sales as “disappointing”.
However, the decline in its storage area network (SAN) sales was much lower than it had predicted – down 2% year on year.
As a result, and thanks to other cost-saving measures taken by the company’s new CEO Lloyd Carney, Brocade saw profits rocket from $43m in 2012 to $119m for the recent three-month period.
"The storage market is recovering more quickly than we had anticipated entering our third quarter and, coupled with continued strong adoption of Gen 5 Fibre Channel, contributed to good SAN revenue results,” he said.
“In IP networking, our federal sales were disappointing, while Brocade VDX switch revenues showed continued strong growth in the third quarter, underscoring our leadership in Ethernet fabrics,” Carney added.
“We are making great progress towards our spending reduction goal, and are already seeing the benefits in our financial results and cash flow."
Brocade also managed to secure $76.8m from a litigation settlement with A10 Networks.