MCDTA Mcdata

McDATA Corporation (Nasdaq: MCDTA)(Nasdaq: MCDT) today announced preliminary results for the third quarter of fiscal 2006 (Q3 06) ending October 31, 2006. McDATA expects to report net revenue for Q3 06 in a range of $155 million to $157 million and diluted non-GAAP net income (loss) per diluted share between ($0.04) and ($0.02). Non-GAAP gross margin for Q3 06 is expected to be in a range of 40 percent to 42 percent. Non-GAAP gross margin for Q3 06 largely reflects a more challenging sales environment. Non-GAAP operating expenses are expected to be in a range of $71 million to $73 million. Commenting on the preliminary third quarter fiscal year 2006 results, John Kelley, McDATA chairman, president and CEO, said, �I am very proud of the McDATA team. We announced our agreement to be acquired by Brocade eight days into our third quarter, and we will post sequential revenue growth when we report final results at the end of the month.� Kelley continued, �Our higher-end product offerings showed particular strength this quarter, with solid revenue contribution from our Fibre Channel director, extension and FICON product offerings. Our services revenue also increased on a sequential and year-over-year basis, with maintenance revenue reaching an all time high.� McDATA's non-GAAP net income estimate for Q3 06 excludes acquisition and severance related costs, charges related to the amortization of purchased intangible assets, amortization of debt discount, and the impact of stock compensation expense following the adoption of FAS 123R. All statements relating to the Company's third quarter fiscal 2006 financial performance are preliminary and are based on management's initial estimates of operating results and may change based on the Company's management and independent auditors completion of customary quarterly closing and review procedures. McDATA will report final financial results for its third quarter fiscal year 2006 on Thursday, November 30, 2006, after the close of market. About McDATA (www.mcdata.com) McDATA (Nasdaq: MCDTA)(Nasdaq: MCDT) is the leading provider of storage networking solutions, helping customers build, globally connect, optimize and centrally manage data infrastructures across SAN, MAN and WAN environments. With nearly 25 years experience developing SAN products, services and solutions, McDATA is the trusted partner in the world's largest data centers, connecting more than two-thirds of all networked data. Forward-Looking Statements This press release contains statements about expected future events that are forward-looking and subject to risks and uncertainties. Readers are urged to consider statements that include the terms "believes," "belief," "expects," "plans," "objectives," "estimates," "anticipates," "intends," "targets," or the like to be uncertain and forward-looking. Factors that could cause actual results to differ and vary materially from expectations include, but are not limited to, McDATA�s relationships with EMC, IBM and Hitachi Data Systems and the level of their orders, aggressive price competition by numerous other SAN and IP switch suppliers, OEM qualification of our new products, integration of CNT�s sales and marketing functions, manufacturing constraints, constraints in obtaining third party product for resale and other risk factors that are disclosed in McDATA�s filings with the Securities and Exchange Commission. These cautionary statements by McDATA should not be construed as exhaustive or as any admission regarding the adequacy of disclosures made by McDATA. All cautionary statements should be read as being applicable to all forward-looking statements wherever they appear. McDATA does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. McDATA Corporation (Nasdaq: MCDTA)(Nasdaq: MCDT) today announced preliminary results for the third quarter of fiscal 2006 (Q3 06) ending October 31, 2006. McDATA expects to report net revenue for Q3 06 in a range of $155 million to $157 million and diluted non-GAAP net income (loss) per diluted share between ($0.04) and ($0.02). Non-GAAP gross margin for Q3 06 is expected to be in a range of 40 percent to 42 percent. Non-GAAP gross margin for Q3 06 largely reflects a more challenging sales environment. Non-GAAP operating expenses are expected to be in a range of $71 million to $73 million. Commenting on the preliminary third quarter fiscal year 2006 results, John Kelley, McDATA chairman, president and CEO, said, "I am very proud of the McDATA team. We announced our agreement to be acquired by Brocade eight days into our third quarter, and we will post sequential revenue growth when we report final results at the end of the month." Kelley continued, "Our higher-end product offerings showed particular strength this quarter, with solid revenue contribution from our Fibre Channel director, extension and FICON product offerings. Our services revenue also increased on a sequential and year-over-year basis, with maintenance revenue reaching an all time high." McDATA's non-GAAP net income estimate for Q3 06 excludes acquisition and severance related costs, charges related to the amortization of purchased intangible assets, amortization of debt discount, and the impact of stock compensation expense following the adoption of FAS 123R. All statements relating to the Company's third quarter fiscal 2006 financial performance are preliminary and are based on management's initial estimates of operating results and may change based on the Company's management and independent auditors completion of customary quarterly closing and review procedures. McDATA will report final financial results for its third quarter fiscal year 2006 on Thursday, November 30, 2006, after the close of market. About McDATA (www.mcdata.com) McDATA (Nasdaq: MCDTA)(Nasdaq: MCDT) is the leading provider of storage networking solutions, helping customers build, globally connect, optimize and centrally manage data infrastructures across SAN, MAN and WAN environments. With nearly 25 years experience developing SAN products, services and solutions, McDATA is the trusted partner in the world's largest data centers, connecting more than two-thirds of all networked data. Forward-Looking Statements This press release contains statements about expected future events that are forward-looking and subject to risks and uncertainties. Readers are urged to consider statements that include the terms "believes," "belief," "expects," "plans," "objectives," "estimates," "anticipates," "intends," "targets," or the like to be uncertain and forward-looking. Factors that could cause actual results to differ and vary materially from expectations include, but are not limited to, McDATA's relationships with EMC, IBM and Hitachi Data Systems and the level of their orders, aggressive price competition by numerous other SAN and IP switch suppliers, OEM qualification of our new products, integration of CNT's sales and marketing functions, manufacturing constraints, constraints in obtaining third party product for resale and other risk factors that are disclosed in McDATA's filings with the Securities and Exchange Commission. These cautionary statements by McDATA should not be construed as exhaustive or as any admission regarding the adequacy of disclosures made by McDATA. All cautionary statements should be read as being applicable to all forward-looking statements wherever they appear. McDATA does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.