SAN JOSE, Calif., July 20 /PRNewswire-FirstCall/ -- Brocade Communications
Systems, Inc. (Nasdaq: BRCD) today has issued the following statement.
It is a matter of public record that Brocade restated its historical
financial results twice during calendar year 2005, following the completion of
the Company's internal audit committee reviews of its historical stock option
granting practices. As the Company disclosed previously, none of the charges
affected its historical revenues, cash positions, or non-stock option related
As disclosed in the Company's public filings, Brocade has taken a number
of steps to strengthen disclosure controls and procedures, and internal
control over financial reporting, including personnel and executive changes
and procedural changes to improve the stock option granting and employee
change in status processes.
No executive officers involved in the historical stock option granting
practices remain employed with Brocade.
In the first quarter of fiscal year 2006, the Company reserved $7 million
for a proposed settlement with the SEC. The $7 million is based on an offer
of settlement that the Company made to the SEC staff and which the Staff has
indicated it would recommend to the SEC Commissioners. This proposed
settlement is contingent upon SEC Commissioners approval. Brocade continues
to cooperate regarding this matter. There is no further update on the
Brocade has no comment with respect to the former executive officers.
SOURCE Brocade Communications Systems, Inc.
CONTACT: media, Leslie Davis, +1-408-333-5260, or firstname.lastname@example.org,
or investor, Shirley Stacy, +1-408-333-5752, or email@example.com, both of
Brocade Communications Systems, Inc.
Web site: http://www.brocade.com