Exhibit 99.1

BROCADE CONTACTS
Investor Relations Shirley Stacy Tel: 408.333.5752 sstacy@brocade.com	Media Relations Fenella Tigner Tel: 408.333.6843 ftigner@brocade.com

BROCADE REPORTS SECOND QUARTER FISCAL 2003 FINANCIAL RESULTS

SAN JOSE, Calif.—May 14, 2003—Brocade Communications Systems, Inc. (Brocade®) (Nasdaq: BRCD) reported today financial results for its second quarter of fiscal year 2003, which ended April 26, 2003 (Q2 03). Net revenue for Q2 03 was $130.9 million, which compares to $123.1 million reported in the first quarter of fiscal year 2003 (Q1 03), and $135.0 million reported in the second quarter of fiscal year 2002 (Q2 02).

Reporting on a Generally Accepted Accounting Principles (GAAP) basis, net loss for Q2 03 was $146.0 million, or $0.57 per share. This compares to a GAAP net loss for Q1 03 of $6.9 million, or $0.03 per share, and GAAP net income of $14.0 million or $0.06 per share in Q2 02.

Non-GAAP net loss for Q2 03 was $1.0 million or $0.00 per share, as compared to non-GAAP net income of $0.3 million or $0.00 per share in Q1 03. There was no difference between GAAP and non-GAAP net income in Q2 02. Non-GAAP net income for Q2 03 excludes in-process research and development, deferred stock compensation and other acquisition costs related to the acquisition of Rhapsody Networks, Inc. (Rhapsody) in Q2 03, and severance, asset impairment, and other charges related to the restructuring of business operations that was announced on April 10, 2003. A reconciliation between GAAP and non-GAAP information is attached to this press release.

“I am pleased with the results that we have delivered in meeting our expectations of revenue, gross margin and operating expense,” said Greg Reyes, Brocade Chairman and CEO. “Moving forward, we remain committed to driving revenue growth and profitability.”

Q2 03 Financial and Business Highlights

• Cash and investments were $904.6 million at the end of Q2 03, an increase of $11.2 million from Q1 03.

Brocade Communications Systems, Inc.
1745 Technology Dr. San Jose, CA 95110
T 408.487.8000 F 408.487.8101
www.brocade.com

BROCADE REPORTS Q2 03 FINANCIAL RESULTS PAGE 2

• Days sales outstanding in accounts receivable at the end of Q2 03 were 46 days, compared to 53 days at the end of Q1 03.

• Brocade announced OEM availability of the Brocade Fabric Operating Environment, an array of significant new features and capabilities for the Brocade Fabric Operating System (Fabric OS). With this software release, Brocade now offers the industry’s first fabric-based SAN security, enhanced SAN management tools, and new high-availability and connectivity features.

• Brocade completed its acquisition of Rhapsody, acquiring all outstanding shares of Rhapsody in exchange for 20.4 million shares of Brocade common stock. In addition, Brocade will issue an additional 2.9 million shares of Brocade common stock if specified development milestones are satisfied.

• EMC Corporation announced that they will develop intelligent infrastructure software for the new Brocade SilkWorm® Fabric Application Platform, enabling new levels of data delivery, management, scalability and performance in heterogeneous storage environments.

• Brocade and VERITAS Software Corporation announced a joint development agreement in which VERITAS will develop volume management and storage resource management software technology for the Brocade SilkWorm Fabric Application Platform.

• Brocade announced that seven storage management companies, including Alacritus Software, CommVault Systems, FalconStor Software, Incipient, Inc., InterSAN, Inc., StoreAge Networking Technologies, Inc., and Topio have selected the Brocade SilkWorm Fabric Application Platform on which to design new, fabric-based storage management software, demonstrating the rapidly growing industry support for fabric-based applications.

• Brocade completed a restructuring program that included a workforce reduction of approximately nine percent.

The non-GAAP, formerly pro forma, information provided in this press release is a supplement to, and not a substitute for, our financial results presented in accordance with GAAP. The non-GAAP results exclude certain expenses to provide what we believe is a more complete understanding of our underlying operational results and trends. Specifically, we believe the non-GAAP results provide useful information to both management and investors by excluding certain expenses that we believe are not indicative of our core operating results. Further, these non-GAAP results are one of the primary indicators management uses for planning and forecasting of future periods. Brocade management refers to these non-GAAP financial measures in making decisions regarding the Company’s operational performance and to

BROCADE REPORTS Q2 03 FINANCIAL RESULTS PAGE 3

facilitate internal comparisons to both the Company’s historical operating results and to competitor’s operating results.

Conference Call

Brocade will host a conference call on Wednesday, May 14, 2003, at 2:30 p.m. Pacific Time / 5:30 p.m. Eastern Time to discuss its second quarter fiscal year 2003 results. The dial-in numbers for the conference call are 877-407-2753 or 706-634-7602, password “Brocade”. The conference call will also be web cast at www.brocade.com/investors and will be archived for the next 12 months. A telephone replay of the conference call will be available until Wednesday, May 21, at 800-642-1687 or 706-645-9291, passcode 9745364.

About Brocade Communications Systems, Inc.

Brocade (Nasdaq: BRCD) offers the industry’s leading intelligent platform for networking storage. The world’s leading systems, applications, and storage vendors have selected Brocade to provide a networking foundation for their SAN solutions. The Brocade SilkWorm® family of fabric switches and software is designed to optimize data availability and storage and server resources in the enterprise. Using Brocade solutions, companies can simplify the implementation of storage area networks, reduce the total cost of ownership of data storage environments, and improve network and application efficiency. For more information, visit the Brocade website at www.brocade.com or contact the company at info@brocade.com.

Cautionary Statement

This press release contains forward-looking statements, as defined under Federal Securities Laws. These forward-looking statements include statements regarding the company’s future performance and profitability. These statements are just predictions and involve risks and uncertainties, such that actual results may differ significantly. These risks include, but are not limited to, quarterly fluctuations in our revenues and operating results; the effect of changes in IT spending levels; the effect of competition, including pricing pressure; our dependence on OEM partners; declines in the prices of our products; our ability to develop new and enhanced products that achieve widespread market acceptance; our ability to manage the transition between new and older products; risks associated with international political instability; our failure to manage expansion effectively; our failure to adequately anticipate future OEM and end-user product needs or to accurately forecast end-user demand; risks associated with increased international sales activity; our failure to manage distribution channels and relationships; the loss of our

BROCADE REPORTS Q2 03 FINANCIAL RESULTS PAGE 4

third-party contract manufacturers; our dependence on sole source and limited source suppliers for certain key components including ASICs, microprocessors, logic chips and programmable logic devices; the existence of undetected errors in our products; and possible fluctuations in future expenses. These and other risks are set forth in more detail in the Company’s reports on Form 10-Q for the fiscal quarter ended January 25, 2003 and on Form 10-K for the fiscal year ended October 26, 2002. Brocade expressly assumes no obligation to update any such forward-looking statements.

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Brocade, the B weave logo and SilkWorm are registered trademarks of Brocade Communications Systems, Inc. or its subsidiaries in the United States or in other countries. All other brands, products, or service names are or may be trademarks or service marks of, and are used to identify, products or services of their respective owners. All products, plans, and dates are subject to change without notice.

BROCADE REPORTS Q2 03 FINANCIAL RESULTS PAGE 5

BROCADE COMMUNICATIONS SYSTEMS, INC.
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND RECONCILIATION OF GAAP TO NON-GAAP OPERATING RESULTS (*)
(in thousands, except per share data)
(unaudited)

			Three Months Ended
			April 26, 2003
												April 27, 2002
			GAAP			Adjustments			Non-GAAP			GAAP (**)
Net revenues			$	130,946		$	—		$	130,946		$	134,950
Cost of revenues				60,262			—			60,262			53,673
		Gross margin		70,684			—			70,684			81,277
Operating expenses:
	Research and development			36,548			—			36,548			33,012
	Sales and marketing			31,962			—			31,962			26,794
	General and administrative			5,304			—			5,304			4,840
	Restructuring costs			10,888		(a)	(10,888	)		—			—
	Amortization of deferred stock compensation			212		(b)	(212	)		—			242
	In-process research and development and other acquisition costs			134,898		(c)	(134,898	)		—			—
		Total operating expenses		219,812			(145,998	)		73,814			64,888
Income (loss) from operations				(149,128	)		145,998			(3,130	)		16,389
Interest and other income, net				5,097			—			5,097			6,661
Interest expense				(3,362	)		—			(3,362	)		(3,360	)
Income (loss) before provision for income taxes				(147,393	)		145,998			(1,395	)		19,690
Income tax (benefit) provision				(1,376	)	(d)	971			(405	)		5,712
Net income (loss)			$	(146,017	)	$	145,027		$	(990	)	$	13,978
Net income (loss) per share – basic			$	(0.57	)				$	0.00		$	0.06
Net income (loss) per share – diluted			$	(0.57	)				$	0.00		$	0.06
Shares used in per share calculation – basic				254,687						254,687			231,185
Shares used in per share calculation – diluted				254,687						254,687			245,678

BROCADE REPORTS Q2 03 FINANCIAL RESULTS PAGE 6

BROCADE COMMUNICATIONS SYSTEMS, INC.
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND RECONCILIATION OF GAAP TO NON-GAAP OPERATING RESULTS (*)
(in thousands, except per share data)
(unaudited)

			Six Months Ended
			April 26, 2003
												April 27, 2002
			GAAP			Adjustments			Non-GAAP			GAAP (**)
Net revenues			$	254,062		$	—		$	254,062		$	258,028
Cost of revenues				117,285						117,285			102,651
		Gross margin		136,777			—			136,777			155,377
Operating expenses:
	Research and development			68,418			—			68,418			62,314
	Sales and marketing			62,723			—			62,723			52,384
	General and administrative			10,266			—			10,266			9,383
	Restructuring costs			21,006		(a)	(21,006	)		—			—
	Amortization of deferred stock compensation			281		(b)	(212	)		69			484
	In-process research and development and other acquisition costs			134,898		(c)	(134,898	)		—			—
		Total operating expenses		297,592			(156,116	)		141,476			124,565
Income (loss) from operations				(160,815	)		156,116			(4,699	)		30,812
Interest and other income, net				10,430			—			10,430			9,996
Interest expense				(6,712	)		—			(6,712	)		(4,670	)
Income (loss) before provision for income taxes				(157,097	)		156,116			(981	)		36,138
Income tax (benefit) provision				(4,190	)	(d)	3,905			(285	)		10,489
Net income (loss)			$	(152,907	)	$	152,211		$	(696	)	$	25,649
Net income (loss) per share – basic			$	(0.62	)				$	0.00		$	0.11
Net income (loss) per share – diluted			$	(0.62	)				$	0.00		$	0.10
Shares used in per share calculation – basic				244,792						244,792			229,720
Shares used in per share calculation – diluted				244,792						244,792			246,955

(*) The non-GAAP, formerly pro-forma, information provided in this press release is a supplement to, and not a substitute for, our financial results presented in accordance with GAAP. The non-GAAP results exclude certain expenses to provide what we believe is a more complete understanding of our underlying operational results and trends. Specifically, we believe the non-GAAP results provide useful information to both management and investors by excluding certain expenses that we believe are not indicative of our core operating results. Further, these non-GAAP results are one of the primary indicators management uses for planning and forecasting of future periods. Brocade management refers to these non-GAAP financial measures in making decisions regarding the Company’s operational performance and to facilitate internal comparisons to both the Company’s historical operating results and to competitor’s operating results. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results.

BROCADE REPORTS Q2 03 FINANCIAL RESULTS PAGE 7

(**) For the three and six-month periods ended April 27, 2002, there were no differences between GAAP and non-GAAP results.

(a)	Severance and related benefits, asset impairment charges, and contract termination charges related to the restructuring of business operations.
(b)	Deferred stock compensation related to the acquisition of Rhapsody.
(c)	In-process research and development and other acquisition costs related to the acquisition of Rhapsody.
(d)	Income tax effects associated with non-GAAP adjustments.

BROCADE REPORTS Q2 03 FINANCIAL RESULTS PAGE 8

BROCADE COMMUNICATIONS SYSTEMS, INC.
GAAP CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)

				April 26,			October 26,
				2003			2002
Assets
Current assets:
	Cash and cash equivalents			$	415,946		$	516,535
	Short-term investments				119,540			50,988
		Total cash, cash equivalents, and short-term investments			535,486			567,523
	Marketable equity securities				868			226
	Accounts receivable, net				65,750			97,707
	Inventories, net				5,064			5,402
	Deferred tax assets, net				28,418			28,418
	Prepaid expenses and other current assets				12,196			16,429
		Total current assets			647,782			715,705
Long-term investments					369,158			320,865
Property and equipment, net					133,310			143,625
Deferred tax assets, net					221,033			221,878
Convertible subordinated debt issuance costs					9,041			10,274
Other assets					4,960			9,316
			Total assets	$	1,385,284		$	1,421,663
Liabilities and Stockholders’ Equity
Current liabilities:
	Accounts payable			$	41,853		$	57,538
	Accrued employee compensation				30,259			23,930
	Deferred revenue				20,133			22,430
	Current liabilities associated with lease losses				8,532			8,204
	Other accrued liabilities				38,762			49,364
		Total current liabilities			139,539			161,466
Non-current liabilities associated with lease losses					20,399			22,602
Convertible subordinated debt					550,000			550,000
Stockholders’ equity:
	Common stock				718,015			577,406
	Deferred stock compensation				(1,465	)		(69	)
	Accumulated other comprehensive income				7,523			6,078
	Accumulated earnings (deficit)				(48,727	)		104,180
		Total stockholders’ equity			675,346			687,595
			Total liabilities and stockholders’ equity	$	1,385,284		$	1,421,663

BROCADE REPORTS Q2 03 FINANCIAL RESULTS PAGE 9

BROCADE COMMUNICATIONS SYSTEMS, INC.
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND RECONCILIATION OF GAAP TO NON-GAAP OPERATING RESULTS (*)
(in thousands, except per share data)
(unaudited)

			Three Months Ended
			January 25, 2003
			GAAP			Adjustments			Non-GAAP
Net revenues			$	123,116		$	—		$	123,116
Cost of revenues				57,023			—			57,023
		Gross margin		66,093			—			66,093
Operating expenses:
	Research and development			31,870			—			31,870
	Sales and marketing			30,761			—			30,761
	General and administrative			4,962			—			4,962
	Restructuring costs			10,118		(a)	(10,118	)		—
	Amortization of deferred stock compensation			69			—			69
		Total operating expenses		77,780			(10,118	)		67,662
Loss from operations				(11,687	)		10,118			(1,569	)
Interest and other income, net				5,333			—			5,333
Interest expense				(3,350	)		—			(3,350	)
Income (loss) before provision for income taxes				(9,704	)		10,118			414
Income tax (benefit) provision				(2,814	)	(d)	2,934			120
Net income (loss)			$	(6,890	)	$	7,184		$	294
Net income (loss) per share – basic			$	(0.03	)				$	0.00
Net income (loss) per share – diluted			$	(0.03	)				$	0.00
Shares used in per share calculation – basic				234,898						234,898
Shares used in per share calculation – diluted				234,898						237,766