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* Brocade says seeking growth through partnerships

* Partnerships with IBM, Dell on track

* Shares fall 5.4 pct despite strong results
(Adds comments, background on industry M&A, share move)

By Ritsuko Ando

NEW YORK, Nov 24 (Reuters) – Brocade Communications Systems
Inc’s (BRCD.O) top executive denied the network equipment maker
had looked for a buyer and said the company was seeking to grow
through partnerships.

People familiar with the matter had told Reuters in October
that Brocade, which sells network gear and software that help
companies manage data networks, had put itself on the block and
that HP was a possible buyer.

“That is just false,” Chief Executive Michael Klayko said
during a conference call with analysts on Tuesday.

The company was widely seen as having missed out on a
buyout opportunity when Hewlett-Packard Co (HPQ.N) said it
would buy 3Com Corp (COMS.O) rather than Brocade.

Shares of Brocade fell 5.4 percent on Tuesday despite
stronger-than-expected results announced the previous day.
[ID:nN23258074]

The stock is down about 15 percent since HP announced its
plan to buy 3Com.

The HP-3Com deal followed a string of acquisitions in the
technology industry, including Dell Inc’s (DELL.O) purchase of
Perot Systems Corp, Xerox Corp’s (XRX.N) pending acquisition
of Affiliated Computer Services Inc (ACS.N) and Oracle Corp’s
(ORCL.O) plan to buy Sun Microsystems (JAVA.O).

Large technology firms are seeking to expand their product
portfolio and become “one stop shops” for their customers’
technology needs. Smaller manufacturers are believed to be open
to buyouts as a way of securing a solid sales channel.

Brocade, however, said it was seeking to grow through
partnerships, and said its sales agreements with Dell and IBM
were on track to bring in more revenue in 2010.

“We’re comfortable with the progress, specifically with IBM
and Dell,” said Ian Whiting, Brocade’s senior vice president of
worldwide sales.

Brocade shares were down 5.4 percent, or 42 cents, at $7.38
in early Nasdaq trading. They had risen slightly after-hours on
Monday following the company’s earnings announcement.
(Reporting by Ritsuko Ando, editing by Gerald E. McCormick and
Derek Caney)
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