Brocade Posts Record Sales, Turns a Profit

Brocade Communications Systems Inc., the subject of a federal stock options probe, posted record revenue and swung to a profit in its fiscal third quarter.

For the three months ended July 29, Brocade earned $24.5 million, or 9 cents a share, compared with a loss of $7.24 million, or 3 cents, in the same quarter last year. Sales rose 55% to a record $188.95 million.

The San Jose-based company, which had 1,399 employees as of the end of the quarter, said it spent almost $14 million on one-time expenses, including $3 million in legal fees related to a Securities and Exchange Commission investigation over stock options backdating and related shareholder litigation, and $7.4 million for stock-based compensation.