Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Brocade Communications Systems
So what: Brocade competes with Cisco
Now what: Brocade's 2008 acquisition of Foundry Networks has been troubled and its earnings are a small fraction of the highs achieved that year. Earnings forecasts are likely to rise, but not enough to generate non-GAAP EPS growth in 2011. What's more, GAAP EPS of $0.06 for the quarter was half of non-GAAP EPS, with stock option expense accounting for 39% of the difference and amortization of intangible assets accounting for 60%.
Interested in more info on BRCD? Add it to your watchlist here by clicking here.
Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.