Brocade Communications Systems (Nasdaq: BRCD) reported earnings on Aug. 16. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended July 28 (Q3), Brocade Communications Systems beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved.

Margins expanded across the board.

Revenue details
 Brocade Communications Systems chalked up revenue of $555.3 million. The 25 analysts polled by S&P Capital IQ expected revenue of $536.8 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $502.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.14. The 26 earnings estimates compiled by S&P Capital IQ averaged $0.12 per share. GAAP EPS of $0.09 for Q3 were much higher than the prior-year quarter's $0.00 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 61.3%, 30 basis points better than the prior-year quarter. Operating margin was 12.6%, 580 basis points better than the prior-year quarter. Net margin was 7.8%, 740 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $569.3 million. On the bottom line, the average EPS estimate is $0.14.

Next year's average estimate for revenue is $2.22 billion. The average EPS estimate is $0.62.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 718 members out of 762 rating the stock outperform, and 44 members rating it underperform. Among 98 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 90 give Brocade Communications Systems a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Brocade Communications Systems is hold, with an average price target of $6.04.

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