Shares of data-storage company McData
McData, which competes with firms like Brocade Communications
As expected, McData lost $50 million for the third quarter, or $0.44 a share, including charges. Excluding charges, McData earned $2.1 million, or $0.02 a share, about what it earned on the same basis in last year's Q3. Revenues were up 17% to $94.7 million. Before it lowered its Q3 outlook, McData had anticipated revenues of $107-$112 million.
For its fourth quarter, McData anticipates earnings excluding charges to come in around breakeven, or $0.01 per share on revenues of $108 million-$116 million. Analysts had been expecting earnings of $0.03 a share on sales of $116 million.
Whether these expectations are realistic is anyone's guess, but investors looking for signs that McData has the pricing situation and competition under control can't be too optimistic.
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