Worldwide FC SAN Switch Revenue Increased 20 Percent in First Quarter of 2006

Gartner: Worldwide Fibre Channel storage area network (FC SAN) switch market revenue totaled $378 million in the first quarter of 2006, a 20.3 percent increase from the first quarter of 2005. Increased availability and deployment of 4-Gbps products enhanced revenue in the first quarter. As FC switching products continued the transition from 2 Gbps to 4 Gbps, only Brocade shipped significant amounts of 4-Gbps core product in 1Q06. Brocade continued to gain market share in the core product segment at the expense of McData and Cisco. As Cisco and McData begin shipping 4-Gbps core products, they will compete more effectively for share in this space. Each of the four leading vendors showed strong year-over-year growth (see Table 1). Brocade accounted for 46.3 percent of worldwide FC SAN switch revenue in the first quarter of 2006. Cisco experienced the strongest growth rate among the top-tier vendors, as its revenue increased 24.5 percent in the first quarter. Table 1 Worldwide FC SAN Switch 1Q06 Vendor Revenue Estimates (Millions of Dollars)

Company	1Q06 Revenue	1Q06 Market Share (%)	1Q05 Revenue	1Q05 Market Share (%)	1Q05-1Q06 Growth (%)
Brocade	175.1	46.3	144.4	45.9	21.3
McData/CNT	101.4	26.8	87.5	27.9	15.9
Cisco	81.2	21.5	65.2	20.8	24.5
QLogic	17.5	4.6	14.3	4.6	22.4
Emulex	2.1	0.6	2.0	0.6	5.0
Other Vendors	0.8	0.2	0.8	0.2	0.0
Total	378.1	100.0	314.2	100.0	20.3

Source: Gartner Dataquest (June 2006) Market Share: FC SAN Switches, worldwide, 1Q06 Publ 20060612