back to article Boring old Brocade just sits there making money. Damn them

Brocade's second quarter fiscal 2015 revenue was $547m, up two per cent year-on-year and down five per cent sequentially, as is Brocade's seasonal pattern. Net income was $77m, monstrously better than the $14m loss it announced a year ago. That loss was due, Brocade says, to a non-cash goodwill impairment charge from the …

  1. Tom Maddox Silver badge
    WTF?

    Translation?

    "a non-cash goodwill impairment charge from the strategic repositioning"

    Can someone give me a translation in English?

    1. GBE

      Re: Translation?

      Mostly it translates to

      "Wooops! Sorry folks, some of your money's gone."

      If you read up on goodwill (the accounting term) in wikipedia, there's a pretty good description. It basically means you paid X for something, and it was only worth Y (where X > Y). In order for the books to balance, when you spend X amount of cash, you've got to put X worth of assets onto the books. If what you bought is only worth Y, then you also put (X-Y) worth of "goodwill" onto the books. Or something like that.

      http://en.wikipedia.org/wiki/Goodwill_%28accounting%29

  2. Matt Bryant Silver badge
    Happy

    "..... Fibre Channel (FC) revenues from a mature business are solid but flat....."

    Yup, that Death Of The SAN the iSCSI crowd have been dreaming about for years has been delayed again.

  3. 38292757

    I thought goodwill was the value of the brand. . . like here in the US everyone buys Heinze catsup, even though every other brand and brandless catsup tastes exactly like it. So the value of the Heinze company isn't the buildings and trucks and piles of tomatoes; it's the value in the mind of the consumer associated with the product, loyalty, etc. You have to pay extra when purchasing a brand like that. . .aka "goodwill." Doubtless this is some kind of accounting legerdemain (get it. . . "ledgers" ?) meant to avoid ascribing a loss to any particular part of the company, for tax purposes.

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