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Get Up, Get Into It, Get Involved

08/19/11

Get Up, Get Into It, Get Involved

Some businesses in this economy are hurting, even large corporate behemoths:

For its third fiscal 2011 quarter, ending 30 July, Brocade's revenues were $503m, down from the preceding quarter's $548m, and also down from the year-ago quarter's $504m. Net income showed the same pattern but more starkly, with Q3 income being just $2m, compared to the previous quarter's $26m and the year-ago quarter's $23m.

Still millions in profits, but less than they were pocketing before the global economy tanks. But note this:

There are two business units in Brocade. The Ethernet business accounted for $168.5m of its revenues, up 13 per cent year-on-year, and with service providers and enterprise customer sales rising 28 per cent but federal sales falling 33 per cent, although federal sales did rise 32 per cent compared to the previous quarter.

CEO Michael Klayko said: "Headwinds in the IT market, federal spending, and overall global economy made for a challenging quarter for the company."

There is a big money interest with a vested interesting in defeating austerity programs (outside of the defense industry), who even seem to realize that cuts in government spending will hurt their bottom line. They just don't seem to be as active in politics as pro-austerity folks like the Koch brothers. Either the people voting against their own self interest include more than just Brocade CEO's or they're not practicing an effective political strategy.

  01:17:00 pm by Ragamuffin, Categories: News

1 comment

Comment from: grygus [Member]
grygus

I've often wondered whether people who advocate small government realize how connected government spending is to the economy we have. When Estonia slashed government spending to eliminate deficit spending, their economy contracted significantly. It is paying some dividends now, since they're one of the few Euro countries not in debt, but it was pretty painful for a couple of years. America would never do that - we're freaking out because GDP is growing too slowly. Their GDP went down 13% while unemployment soared to 19%; we would panic and abandon that plan immediately.

http://en.wikipedia.org/wiki/Economy_of_Estonia

08/19/11 @ 15:07
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