One major overhang related to backdating is a proposed settlement the company has made with the SEC.Brocade has set aside $7 million to settle with the SEC.
Even if you choose not to have your activity tracked by third parties for advertising services, you will still see non-personalized ads on our site.“This company has been through the wringer,” said Todd Fernandez, a senior research analyst at Glass Lewis, a shareholder advisory firm in San Francisco.In 2005, morale was at a low for the company, whose eight-story glass-and-concrete headquarters can be seen from Guadalupe Parkway.But over the past five months, Brocade has seen its stock rebound and surge nearly 66 percent, closing Friday at $8.62.Investors seem to be shrugging off the worries about any residuals from the backdating scandal that swept through Silicon Valley this year.We have closely followed the up-and-down travails of former Brocade CEO Gregory Reyes (pictured.) He was convicted in 2007 for his role in stock options backdating at the company, receiving a 21-month prison term.
But his conviction was reversed last year by the 9th Circuit.
Brocade hopes to head off Cisco, which has been gaining steam in the area of storage network switching in big data centers, with Mc Data.
At one point, the rivalry was so fierce that Reyes and others shot at the Broomfield, Colo., company’s switching products with a cannon to rally the Brocade troops against the enemy.
Gregory Reyes, the former chief executive of Brocade Communications Systems Inc., was convicted of securities fraud in the first criminal trial over the backdating of stock options. Neal Gerber Eisenberg partner and White Collar Criminal, Regulatory & Internal Investigative Services Practice Group co-chair Phillip L.
District Court in San Francisco was a major victory for the government and is expected to stoke the pursuit of other executives for backdating.
Prosecutor the retried the case, winning another conviction.