Merger and Acquisition #2: Brocade Communications Systems

Another potential take-over target for the cash-rich technology giants according to Bloomberg BusinessWeek is the San Jose, CA based Brocade Communications Systems (Nasdaq:BRCD).  Brocade Communications Systems focuses on data center networking solutions including hardware and software.  The company's rich product line of network gears are what IBM, Oracle, Dell and HP need in order to compete with network giant Cisco System(CSCO).  


Shares of Brocade Communications Systems is trading at $6, about 40% below its 52 weeks high with market cap of $2.72 billion.  The company's revenue and income have been steady for the past few quarters yet the annual revenue kept rising for the past few years.  However its stock price has been flat trading in single digit since 2003 and has yet to reach its triple digit stock price back in 2000 and even the double digits price in 2001 and 2002.  Getting bought out maybe the ultimate way to boost the stocks shareholder value.