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What: Brocade Communications
So what: Earnings were solid with revenue of $550 million and earnings per share of $0.14 for the quarter, both beating expectations. But investors were focused on next quarter's earnings guidance of $0.09 to $0.10 per share, well below expectations of $0.14.
Now what: The company sees risk in federal spending cuts. Brocade thinks trouble will be short-lived, but investors have their doubts, pushing shares lower almost all day long. Last quarter's earnings aren't enough for me to overlook the weak outlook for next quarter, so I've got to sit out today even given the new discount.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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