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Brocade Communications Systems Inc. (NASDAQ: BRCD) develops and provides storage area network and data center networking equipment. The Company's products include directors, switches, routers, fabric-based software, distance/extension products, management applications, utilities, host bus adapters and storage area network (SAN) switch modules, disaster recovery, data warehousing and data security.

Message Board Search for BRCD: http://www.boardcentral.com/boards/BRCD

In the report, the analyst notes:

"The Company's financial results are affected by the global recession but have grown despite the slowdown in demand for information technology, including high-performance data networking solutions. Historically, demand for information technology has declined during recessions or declining economic growth. The Company is especially susceptible to economic slowdowns because the purchases of its products are discretionary.

"The Company reported a significant decline in gross margin for the third quarter of 2009, primarily affected by the cost of revenue, average selling price per port, and volume of ports sold. The Company will report later this month, with the expectation among analysts of a turnaround in gross margin which may be achieved through cost cutting measures of its manufacturing operations. The Company warned in its latest 10-Q that its ability to increase gross margin is generally not within the control of management, as overall economic conditions and increased order volumes are the largest driver of gross margin rates."

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Expected next investor conference call information:
Conference Call Date: 8/20/2009
Conference Call Time (ET): 5:00 PM
Conference Call URL: http://www.brcd.com/phoenix.zhtml?c=90440&p=irol-IRHome