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Brocade Communications Systems Inc. Dec 11
Standard & Poors, Dec 2011
Abstract
Significant installed base in core SAN segment; Moderate leverage for the rating; and Solid long-term growth drivers in infrastructure consolidation and cloud computing. Small market share and in the competitive Ethernet segment; Significant customer concentration; and Product demand highly sensitive to enterprise IT spending. The ratings on San Jose, Calif.-based Brocade Communications Systems Inc. reflect Standard & Poor's Ratings Services' expectation that the company will maintain financial policies consistent with our 'intermediate' financial risk profile, as defined in our criteria. Macro headwinds are likely to mute revenue growth in fiscal 2012 but we expect consistent cash flow generation resulting in sustained adjusted leverage below the 2x range. We view Brocade's business risk profile as 'weak' (as defined in our criteria),...
Companies mentioned in this report are: Brocade Communications Systems Inc.
Action: Review
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
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