SAN FRANCISCO, Aug. 13 /PRNewswire/ -- The following is being issued by
BancBoston Robertson Stephens, a member of the National Association of
Securities Dealers, CRD number 41271:
BancBoston Robertson Stephens managing director and senior
communications/networking analyst Paul Johnson today reiterated his Buy rating
on Brocade Communications Systems Inc. (Nasdaq: BRCD). Brocade is a
pioneering manufacturer of Fibre Channel switches that provide high-speed
connection technology, aimed at bringing to storage, the benefits of
traditional networking architecture.
"We are reiterating our Buy rating on Brocade Communications following the
company's announcement of strong-fiscal-third-quarter results, exceeding our
expectations," said Johnson. "The company reported revenues of $20.1 million
and earnings-per-share of $0.06, versus our estimates of $17 million and
$0.03, respectively. Revenues in the quarter grew an impressive 90 percent
sequentially and 336 percent year-over-year.
"Brocade continues to take market share, with 60 percent of the
Fibre Channel systems business, and 36 percent of the overall Fibre Channel
market," said Johnson. "Given the current market size, and Brocade's relative
share, we believe Brocade has a first mover advantage in the market for
Fibre Channel switches.
"Due to the better-than-expected financial performance in the July
quarter, we are raising our fiscal 1999 and fiscal 2000 earnings-per-share
estimates from ($0.05) to $0.00 and from $0.41 to $0.50, respectively," said
Johnson. "We believe these estimates may prove to be conservative."
Clients interested in receiving more information should contact their
salesperson at 415-781-9700.
BancBoston Robertson Stephens is the leading full-service investment bank
focused exclusively on growth companies. For the first half of 1999, the firm
completed over 100 offerings, raising more than $15 billion in capital for
clients and is the leading investment bank for Internet M&A transactions. The
firm's 45 research analysts cover nearly 700 companies. Founded in 1978,
BancBoston Robertson Stephens is the section 20 subsidiary of
BankBoston Corporation (NYSE: BKB). The firm employs 1,000 employees
throughout the world and has offices in Boston, San Francisco, New York, Menlo
Park, Chicago, London, and Tel Aviv. For more information about the firm,
please visit our Web site at http://www.rsco.com.
The information contained herein is not a complete analysis of every
material fact respecting any company, industry or security. Although opinions
and estimates expressed herein reflect the current judgment of BancBoston
Robertson Stephens, the information upon which such opinions and estimates are
based is not necessarily updated on a regular basis; when it is, the date of
the change in estimate will be noted. In addition, opinions and estimates are
subject to change without notice. This Report contains forward-looking
statements, which involve risks and uncertainties. Actual results may differ
significantly from the results described in the forward-looking statements.
Factors that might cause such a difference include, but are not limited to,
those discussed in "Investment Risks." BancBoston Robertson Stephens from
time to time performs corporate finance or other services for some companies
described herein and may occasionally possess material, nonpublic information
regarding such companies. This information is not used in the preparation of
the opinions and estimates herein. While the information contained in this
Report and the opinions contained herein are based on sources believed to be
reliable, BancBoston Robertson Stephens has not independently verified the
facts, assumptions and estimates contained in this Report. Accordingly, no
representation or warranty, expressed or implied, is made as to, and no
reliance should be placed on, the fairness, accuracy, completeness or
correctness of the information and opinions contained in this Report.
BancBoston Robertson Stephens, its managing directors, its affiliates, and/or
its employees may have an interest in the securities of the issue(s) described
and may make purchases or sales while this report is in circulation.
BancBoston Robertson Stephens International Ltd. is regulated by the
Securities and Futures Authority in the United Kingdom. This publication is
not meant for private customers. The securities discussed herein are not FDIC
insured, are not deposits or other obligations or guarantees of BankBoston
N.A., and are subject to investment risk, including possible loss of any
principal amount invested.
SOURCE BancBoston Robertson Stephens
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