Brocade today reported fourth quarter revenue of $657 million, an increase of 12 percent year-over-year. Revenue for the full fiscal year 2016 was $2.3 billion, up 4 percent year-over-year. Brocade reported non-GAAP earnings per share of $0.33 for the fourth quarter and $1.04 for fiscal year 2016, up 27 percent and up 3 percent year-over-year, respectively.
For today’s earnings news, it appears as if the increases in Brocade’s Q4 and fiscal year revenues stem mainly from its acquisition of Ruckus Wireless, which is part of its IP Networking business.
Brocade reported that Q4 2016 IP Networking product revenue was $256 million, up 51 percent year-over-year and up 22 percent quarter-over-quarter. But the Q4 year-over-year increase was primarily driven by the inclusion of $96 million of Ruckus Wireless product revenue, following the acquisition in fiscal third quarter 2016. This was partially offset by lower service provider sales and lower sales into the education market.
Similarly, for fiscal year 2016, IP Networking product revenue was $730 million, up 21 percent year-over-year, primarily due to the inclusion of five months of revenue from Ruckus Wireless, partially offset by lower service provider and U.S. federal sales.