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Financial - Foundry Networks Q4 CY06 and year end results

Summary:

Foundry's revenue for the fourth quarter of 2006 was $132.7 million, compared to $118.8 million reported for the third quarter of 2006 and $116.1 million in the fourth quarter of 2005.

Revenue for the full year 2006 was $474.0 million, compared to $403.9 million last year.

Detailed:

San Jose, CA – January 31, 2007 - Foundry Networks™, Inc. (NASDAQ: FDRY), today announced preliminary revenue results for its fourth quarter and year ended December 31, 2006. Because of Foundry's continued work related to the previously announced restatement of its earnings, today's announcement of results for the fourth quarter of 2006 does not include a current income statement, balance sheet or other GAAP financials for the fourth quarter or prior periods.

Foundry's revenue for the fourth quarter of 2006 was $132.7 million, compared to $118.8 million reported for the third quarter of 2006 and $116.1 million in the fourth quarter of 2005.

Revenue for the full year 2006 was $474.0 million, compared to $403.9 million last year.

Foundry's cash and marketable securities balance grew by approximately $46 million in the fourth quarter of 2006. As of December 31, 2006 the total value of cash and marketable securities was $886.0 million. Additionally, Foundry added 34 employees during the fourth quarter and 97 during the full-year 2006, mostly salespeople and engineers. The total number of employees at year-end was 816.

In the fourth quarter of 2006, sales to the U.S. Federal Government represented 17% of total revenue while sales to North American commercial customers represented 53% of total revenue. Sales to Europe, the Middle East and Africa (EMEA) represented 15% of total revenue during the period. North American commercial revenue, which includes enterprise and service provider customers, and EMEA revenue, reached record high levels in the most recent quarter.

"We concluded 2006 with a record second half, resulting in the best full-year revenue in our company's history," said Bobby Johnson, President and CEO of Foundry Networks. "Shipments of our NetIron XMR and MLX MPLS router families, which target service providers and high-end customers, grew rapidly, increasing nearly two-fold quarter-over-quarter, and now represent approximately 13% of total revenue. Meanwhile, our BigIron RX and FastIron SuperX families continue to make progress penetrating the enterprise markets. These four product families, along with our new Layer 3 stackable switches and new Layer 4-7 application management switches, now represent more than half of our total revenue.

"Our product development engine has delivered industry leading technology into the hands of our growing sales footprint, both of which have contributed to our record results. Looking forward, we believe we are well positioned for long-term growth," concluded Johnson.

2006 Product Highlights

For the Enterprise LAN switching market, Foundry introduced the:

  • FastIron SX 800 and FastIron SX 1600
  • FastIron GS
  • SecureIron™ Perimeter Traffic Manager (PTM), and SecureIronLS
  • IronPoint 200 Access Points
  • IronView® Network Manager Release 2.0 (INM R2.0)

For the Service Provider router market, Foundry introduced the:

  • NetIron XMR Series Routers
  • NetIron MLX Series Routers
  • NetIron® M2404 Metro Access Switch Family

For the Application Traffic Management market, Foundry introduced the:

  • ServerIron 4G
  • ServerIron 350, 450 and 850 Plus Series
  • ServerIronGT 10 Gigabit Switches

1 comment:

TAG said...

The MLX series has definitely seen an increase in demand over the past 12 months. The cost performance ratio versus Cisco's comparable metro routers (12000) is quite compelling for prospective customers. We are always dealing with clients migrating from Cisco to Foundry for exactly this reason.