Brocade Communications Systems Inc

Brocade Communications Systems Inc. shares rose 16% after the largest maker of computer system switches said it expects to meet or exceed its fiscal third-quarter estimates. The shares rose $6.98 to close at $49.94 on Nasdaq. They have fallen 46% this year. Chief Executive Gregory Reyes told analysts that San Jose-based Brocade is positioned to meet or exceed third-quarter forecasts because companies will need more of its storage products as they expand.

In a blow to the government, the first chief executive found guilty by a jury of backdating stock option grants has had his conviction overturned. Gregory Reyes, former CEO of Brocade Communications Systems Inc. of San Jose, will get a new trial after a federal appeals court in San Francisco ruled that his case was tainted by prosecutorial misconduct. Reyes, 46, was convicted in 2007 of conspiracy and fraud for backdating employee option grants in 2001 and 2002. The practice, widespread particularly in the technology industry, was a way to cherry-pick favorable exercise prices for the options, boosting their value to employees.

Brocade Communications Systems Inc., the subject of a federal stock options probe, posted record revenue and swung to a profit in its fiscal third quarter. For the three months ended July 29, Brocade earned $24.5 million, or 9 cents a share, compared with a loss of $7.24 million, or 3 cents, in the same quarter last year. Sales rose 55% to a record $188.95 million.

Brocade Communications Systems Inc. is plunking down $3 billion for Foundry Networks Inc., melding two companies with a deep presence in the data center industry and posing a direct challenge to behemoth Cisco Systems Inc. The deal announced Monday represents an attempt by San Jose-based Brocade to expand beyond data storage equipment and begin selling machines used to shuttle Internet traffic, Cisco's home turf.

Federal prosecutors added more charges against the nation's first two executives charged in a widening crackdown on the backdating of stock options. Gregory Reyes, the former chief executive of Brocade Communications Systems Inc., and Stephanie Jensen, Brocade's former vice president of human resources, were originally charged with one count each of securities fraud in a criminal complaint July 20.

A federal judge questioned whether U.S. prosecutors have enough evidence to convict Gregory Reyes, Brocade Communications Systems Inc.'s former chief executive, of illegally backdating stock options. At a hearing Friday in San Francisco on whether to dismiss a criminal case against Reyes, U.S. District Judge Charles Breyer repeatedly asked government lawyers to show evidence that Reyes, 44, understood accounting rules about stock option grants or acted recklessly in handling them.

The former chief financial officer of Brocade Communications Systems Inc. was charged with eight counts of civil securities fraud in the company's accounting of backdated stock option awards.

Brocade Communications Systems Inc. President Gregg Reyes said he is comfortable with consensus earnings estimates of 63 cents a share for the fiscal year ending October 2001, Barron's reported in its Jan. 1 issue. The San Jose-based maker of equipment designed to improve data storage in computer systems reported earnings of 28 cents a share for the year ended October 2000, adjusted for a stock split on Dec. 22.

A federal jury Wednesday convicted a former human-resources chief at Brocade Communications Systems Inc. of conspiracy and falsifying records in the latest trial stemming from option-backdating probes that scores of companies are facing. Stephanie Jensen was the second former executive at San Jose-based Brocade, a maker of switches used to connect corporate computers to data-storage machines, to be found guilty at trial in the case.

Former Brocade Communications Systems Inc. Chief Executive Gregory Reyes, the first CEO convicted by a jury for manipulating stock options, was sentenced Wednesday to 21 months in prison and ordered to pay a $15-million fine. Prosecutors had sought a 33-month sentence. In giving the lesser term, U.S. District Judge Charles Breyer in San Francisco said he took into account Reyes' contributions to charity.

Former Brocade Communications Systems Inc. Chief Executive Gregory Reyes, the first CEO convicted by a jury for manipulating stock options, was sentenced Wednesday to 21 months in prison and ordered to pay a $15-million fine. Prosecutors had sought a 33-month sentence. In giving the lesser term, U.S. District Judge Charles Breyer in San Francisco said he took into account Reyes' contributions to charity.

A federal jury Wednesday convicted a former human-resources chief at Brocade Communications Systems Inc. of conspiracy and falsifying records in the latest trial stemming from option-backdating probes that scores of companies are facing. Stephanie Jensen was the second former executive at San Jose-based Brocade, a maker of switches used to connect corporate computers to data-storage machines, to be found guilty at trial in the case.

The former chief financial officer of Brocade Communications Systems Inc. was charged with eight counts of civil securities fraud in the company's accounting of backdated stock option awards.

In a significant slap at Silicon Valley, the first chief executive to stand trial for the backdating of stock options was found guilty Tuesday of securities fraud and making false statements. Gregory L. Reyes, former CEO of Brocade Communications Systems Inc. of San Jose, faces the possibility of 20 years in prison and a $5-million fine for rewarding key employees with options to buy company stock at artificially low prices.

A U.S. judge left up in the air Thursday whether he would dismiss fraud charges against former Brocade Communications Systems Inc. Chief Executive Gregory Reyes -- the first CEO prosecuted in a stock option backdating case. U.S. District Judge Charles Breyer in San Francisco said he may even wait to decide until after the jury in the case returns a verdict. Court rules allow judges to consider dismissal while a trial proceeds or to dismiss cases after a jury renders a verdict, he said.

A judge Monday allowed trial to proceed for former Brocade Communications Systems Inc. Chief Executive Gregory Reyes while he considers whether to dismiss charges against the first CEO prosecuted for stock option backdating. U.S. District Judge Charles Breyer in San Francisco said he probably would decide July 19 whether to throw the case out.

Brocade Communications Systems Inc. is plunking down $3 billion for Foundry Networks Inc., melding two companies with a deep presence in the data center industry and posing a direct challenge to behemoth Cisco Systems Inc. The deal announced Monday represents an attempt by San Jose-based Brocade to expand beyond data storage equipment and begin selling machines used to shuttle Internet traffic, Cisco's home turf.

A judge Monday allowed trial to proceed for former Brocade Communications Systems Inc. Chief Executive Gregory Reyes while he considers whether to dismiss charges against the first CEO prosecuted for stock option backdating. U.S. District Judge Charles Breyer in San Francisco said he probably would decide July 19 whether to throw the case out.

A federal judge questioned whether U.S. prosecutors have enough evidence to convict Gregory Reyes, Brocade Communications Systems Inc.'s former chief executive, of illegally backdating stock options. At a hearing Friday in San Francisco on whether to dismiss a criminal case against Reyes, U.S. District Judge Charles Breyer repeatedly asked government lawyers to show evidence that Reyes, 44, understood accounting rules about stock option grants or acted recklessly in handling them.

Brocade Communications Systems Inc.'s former chief executive approved backdated stock option grants to lure employees during Silicon Valley's boom years, but he did not defraud investors, his lawyer said Monday. Former Brocade CEO Gregory Reyes' defense disputed government fraud charges and stressed that he did not personally profit from such practices. "Greg Reyes did not pocket a penny from the stock options.