Segment Information

9 Months Ended

Jul. 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 Company’s CODM is its 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 July 28, 2012 were attributable to its United States operations.

Summarized financial information by reportable segment for the three and nine months ended July 28, 2012 and July 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 July 28, 2012
Net revenues	$	321,464	$	145,817	$	88,051	$	555,332
Cost of revenues	87,113		86,524		41,217		214,854
Gross margin	$	234,351	$	59,293	$	46,834	$	340,478
Three months ended July 30, 2011
Net revenues	$	275,391	$	138,907	$	88,552	$	502,850
Cost of revenues	69,219		80,102		47,002		196,323
Gross margin	$	206,172	$	58,805	$	41,550	$	306,527
Nine months ended July 28, 2012
Net revenues	$	1,017,258	$	382,429	$	259,726	$	1,659,413
Cost of revenues	273,308		239,913		123,863		637,084
Gross margin	$	743,950	$	142,516	$	135,863	$	1,022,329
Nine months ended July 30, 2011
Net revenues	$	935,129	$	393,692	$	268,148	$	1,596,969
Cost of revenues	267,522		230,490		142,939		640,951
Gross margin	$	667,607	$	163,202	$	125,209	$	956,018