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Brocade Communications Systems
Sure, here's an overview of Brocade Communications Systems, a public company listed on the US stock exchange with the ticker symbol BRCD.
Company Overview: Brocade Communications Systems is a technology company specializing in data storage and networking solutions. They offer a wide range of products and services, including storage area networks (SAN), network virtualization, and security solutions for data centers.
Financials: As of February 2017, Brocade's stock price has been ranging between $11 to $14 per share. Their market capitalization is around $3.9 billion.
Revenue and Earnings: In their most recent quarterly earnings report (Q4 2016), Brocade reported a revenue of $601 million, with a net income of $111 million. The company has seen a consistent growth in their revenue over the past few years, with a five-year annual revenue growth rate of 21.5%.
Growth Prospects: Brocade has been expanding its product portfolio through strategic acquisitions, including the recent acquisition of Ruckus Wireless. This acquisition is expected to enhance Brocade's offerings in the wireless networking space and provide new growth opportunities.
Competition: Brocade operates in a highly competitive industry, with major competitors like Cisco Systems, Dell EMC, and Hewlett Packard Enterprise. The company differentiates itself through its focus on software-based networking solutions and its strong presence in the SAN market.
Valuation: Brocade's current price-to-earnings ratio (P/E ratio) is around 20.6, which is slightly higher than the industry average. Their price-to-sales ratio (PS ratio) is 2.2, which is lower than the industry average. These metrics suggest that Brocade's stock may be slightly overvalued compared to its peers.
Industry Trends: The technology industry is rapidly evolving, with trends like cloud computing, big data, and the Internet of Things (IoT) driving growth. Brocade's focus on software-based networking solutions and data center infrastructure positions them well to benefit from these trends.
Conclusion: Brocade Communications Systems is a well-established player in the data storage and networking industry with a strong track record of revenue growth. While their stock may be slightly overvalued compared to peers, the company's focus on innovative solutions and strategic acquisitions position them well for continued growth in the future. Investors interested in the technology sector may find Brocade an attractive investment opportunity, but should always conduct thorough research and consider various factors before making an investment decision.