Segment Information

6 Months Ended

Apr. 28, 2012

Segment Reporting [Abstract]

Segment Information

Segment Information

Operating segments are defined as components of an enterprise for which separate financial information is available that is evaluated regularly by the Chief Operating Decision Maker (“CODM”), or decision-making group, in deciding how to allocate resources and in assessing performance. Currently, the CODM is the Chief Executive Officer.

Brocade is organized into four operating segments. Two of the operating segments, Data Storage Products and Global Services are individually reportable segments. The other two operating segments, Ethernet Switching & Internet Protocol (“IP”) Routing and Application Delivery Products (“ADP”), combine to form a third reportable segment: Ethernet Products. These segments are organized principally by product category.

Financial decisions and the allocation of resources are based on the information from the Company’s internal management reporting system. The Company does not track its assets by operating segments. The majority of the Company’s assets as of April 28, 2012 were attributable to its United States operations.

Summarized financial information by reportable segment for the three and six months ended April 28, 2012 and April 30, 2011, based on the internal management reporting system, is as follows (in thousands):

	Data Storage Products		Ethernet Products		Global Services		Total
Three months ended April 28, 2012
Net revenues	$	342,922	$	113,182	$	87,335	$	543,439
Cost of revenues	90,357		73,820		42,180		206,357
Gross margin	$	252,565	$	39,362	$	45,155	$	337,082
Three months ended April 30, 2011
Net revenues	$	328,836	$	128,659	$	90,869	$	548,364
Cost of revenues	97,831		73,244		48,680		219,755
Gross margin	$	231,005	$	55,415	$	42,189	$	328,609
Six months ended April 28, 2012
Net revenues	$	695,794	$	236,612	$	171,675	$	1,104,081
Cost of revenues	186,195		153,389		82,646		422,230
Gross margin	$	509,599	$	83,223	$	89,029	$	681,851
Six months ended April 30, 2011
Net revenues	$	659,739	$	254,785	$	179,596	$	1,094,120
Cost of revenues	198,303		150,388		95,937		444,628
Gross margin	$	461,436	$	104,397	$	83,659	$	649,492