Financial - Cisco Reports Second Quarter Earnings

Summary:
* Q2 Net Sales: $8.4 billion
* Q2 Net Income: $1.9 billion GAAP; $2.1 billion non-GAAP
* Q2 Earnings Per Share: $0.31 GAAP (increase of 41% year over year); $0.33 non-GAAP (increase of 27% year over year)

Detailed:
SAN JOSE, Calif. - February 6, 2007 - Cisco®, the worldwide leader in networking that transforms how people connect, communicate and collaborate, today reported its second quarter results for the period ended January 27, 2007. Cisco reported second quarter net sales of $8.4 billion, net income on a generally accepted accounting principles (GAAP) basis of $1.9 billion or $0.31 per share, and non-GAAP net income of $2.1 billion or $0.33 per share. Scientific-Atlanta, Inc., acquired during the third quarter of fiscal 2006, contributed net sales of $639 million during the second quarter of fiscal 2007.

"Cisco achieved record results that were well balanced across our geographies, products, services, customer segments and new markets," said John Chambers, chairman and CEO, Cisco. "This illustrates our key competitive advantage of being able to develop a long-term vision, execute on our strategy and deliver consistent results.

"It is this unique ability to balance between strategy and innovation that has positioned Cisco to take advantage of key emerging business and IT trends such as the rise of video on the network," Chambers continued. "As the network becomes the platform, we are seeing more and more signs that all forms of IT and communication are moving into the network and increasing the total available market to Cisco."

GAAP Results
	Q2 2007	Q2 2006	vs. Q2 2006
Net Sales	$8.4 billion	$6.6 billion	+27.3%
Net Income	$1.9 billion	$1.4 billion	+39.7%
Earnings per Share	$0.31	$ 0.22	+40.9%

Non-GAAP Results
	Q2 2007	Q2 2006	vs. Q2 2006
Net Income	$2.1 billion	$1.6 billion	+28.1%
Earnings per Share	$0.33	$ 0.26	+26.9%

Net sales for the first six months of fiscal 2007 were $16.6 billion, compared with $13.2 billion for the first six months of fiscal 2006. Scientific-Atlanta, Inc. contributed $1.2 billion to net sales during the first six months of fiscal 2007. Net income for the first six months of fiscal 2007, on a GAAP basis, was $3.5 billion or $0.56 per share, compared with $2.6 billion or $0.42 per share for the first six months of fiscal 2006. Non-GAAP net income for the first six months of fiscal 2007 was $4.0 billion or $0.64 per share, compared with $3.2 billion or $0.51 per share for the first six months of fiscal 2006.

A reconciliation between net income on a GAAP basis and non-GAAP net income is provided in the table on page 6, which includes additional information regarding the effect of the December 2006 reinstatement (retroactive to January 1, 2006) of the U.S. federal research and development (R&D) tax credit.

Cisco will discuss second quarter results and business outlook on a conference call and Webcast at 1:30 p.m. Pacific Time today. Call information and related charts are available at http://investor.cisco.com.

Financial Highlights

* Cash flows from operations were $2.7 billion for the second quarter of fiscal 2007, compared with $1.9 billion for the second quarter of fiscal 2006, and compared with $2.3 billion for the first quarter of fiscal 2007.

* Cash and cash equivalents and investments were $20.7 billion at the end of the second quarter of fiscal 2007, compared with $17.8 billion at the end of the fourth quarter of fiscal 2006, and compared with $19.5 billion at the end of the first quarter of fiscal 2007.

* During the second quarter of fiscal 2007, Cisco repurchased 121 million shares of common stock at an average price of $27.01 per share for an aggregate purchase price of $3.3 billion. As of January 27, 2007, Cisco had repurchased and retired 2.1 billion shares of Cisco common stock at an average price of $19.00 per share for an aggregate purchase price of approximately $40.2 billion since the inception of the stock repurchase program.

* Days sales outstanding in accounts receivable (DSO) at the end of the second quarter of fiscal 2007 were 31 days, compared with 38 days at the end of the fourth quarter of fiscal 2006, and compared with 34 days at the end of the first quarter of fiscal 2007.

* Inventory turns on a GAAP basis were 7.8 in the second quarter of fiscal 2007, compared with 8.5 in the fourth quarter of fiscal 2006, and compared with 8.3 in the first quarter of fiscal 2007. Non-GAAP inventory turns were 7.6 in the second quarter of fiscal 2007, compared with 8.3 in the fourth quarter of fiscal 2006, and compared with 8.1 in the first quarter of fiscal 2007.

"We are very pleased with our overall performance and balance for the second quarter of the fiscal year," said Dennis Powell, chief financial officer, Cisco. "Cisco demonstrated continued strength of both our Cisco standalone business, with 18 percent revenue growth year over year, and our Scientific Atlanta business, with 21 percent growth year over year, which exceeded our expectations for combined revenue, operating income and earnings per share."

Business Highlights

Acquisitions

* Cisco announced a definitive agreement to acquire IronPort Systems, Inc., a leading provider of messaging security appliances, focusing on enterprise spam and spyware protection.

* Cisco completed the acquisitions of Tivella, Inc., Orative Corporation, and Greenfield Networks Inc.

New Product Introductions

* Cisco introduced two models to its iPhone® family of voice-over-IP products that marry the familiarity of the telephone with compelling Internet services, access to personal content, and integration with the home, designed to create complete solutions for the communication needs of consumers.

* Cisco introduced Cisco Digital Signage, a solution for management, publishing and playback of digital media on networked digital signage displays. Cisco also announced collaboration with NEC Display Solutions of America, Inc., a large-screen commercial LCD display supplier, to deliver a function-rich digital signage solution.

* Cisco introduced the Cisco MDS 9124 Multilayer Fabric Switch, designed to provide enterprise-class capabilities such as virtual storage area networks, advanced security, high availability and flexibility, all powered by the Cisco SAN operating system.

Major Customer Actions

* Turner Broadcasting System, Inc. chose Scientific Atlanta's MPEG-4 D9034 Encoder to provide MPEG-4 signals for telecommunications companies.

* Bank of America, working with its integration partner EDS, deployed Cisco's IP phones as part of an ongoing project that is fueling next-generation retail banking service innovations.

* FASTWEB, Italy's second-largest fixed telecommunications services provider, chose Cisco IP NGN architecture to deliver significant enhancements to its national network.

* Cisco and Sitronics JSC, a leading technology company in Russia and the Commonwealth of Independent States (CIS), announced a regional alliance to address the rapidly expanding telecommunications market in Russia, CIS and other emerging markets.

* Shui On Land Limited, a leading property developer in Mainland China, is planning to work with Cisco to build world-class digital communities in China.

* Singapore Telecommunications Limited is planning to deploy a Wi-Fi mesh network from Cisco in the North Region of Singapore.

Key Milestones

* Cisco announced that it plans to present two Cisco TelePresence systems each to the governments of five nations in the Emerging Markets as a means to improve communications and collaboration.

* Cisco achieved numerous product milestones throughout the second quarter, having now sold more than 2 million Cisco integrated services routers, shipping its 10-millionth IP phone and deploying its 500th Cisco CRS-1 Carrier Routing System.

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

Financial - Juniper Networks Q4 CY06 and year end results

Summary:
Net revenues for the fourth quarter of 2006 were $595.8 million, compared with $575.5 million for the same quarter last year, an increase of 4 percent. Net revenues for the fiscal year ended December 31, 2006 were $2,303.6 million, compared with $2,064.0 million for the same period last year, an increase of approximately 12 percent.

Extended:
SUNNYVALE, CA - January 30, 2007 -- Juniper Networks, Inc. (NASDAQ: JNPR) today reported its revenue results for the fourth quarter and year ended December 31, 2006.

Net revenues for the fourth quarter of 2006 were $595.8 million, compared with $575.5 million for the same quarter last year, an increase of 4 percent. Net revenues for the fiscal year ended December 31, 2006 were $2,303.6 million, compared with $2,064.0 million for the same period last year, an increase of approximately 12 percent.

Net cash, cash equivalents and investments increased over $200 million during the fourth quarter of 2006 to $2.6 billion.

"2006 marked our 10th anniversary and a year of considerable progress which culminated with record revenue results in the fourth quarter," said Scott Kriens, Juniper Networks' Chairman and CEO. "Moving into 2007, we see a marketplace that presents us with significant opportunity to deliver strategic value to customers, scale our ability to execute and continue to grow our business."

Capital expenditures and depreciation during the fourth quarter of 2006 were $32.3 million and $20.7 million, respectively.
Highlights:

Juniper's focus on innovation was reflected across a number of key product initiatives during the quarter.

For the service provider market, Juniper continued to invest and innovate delivering new features that improve operational efficiencies in next-generation core networks being deployed in response to increasing demand for multiplay service offerings.

New T-series enhancements included industry-leading point-to-multipoint JUNOS capabilities and new solutions to integrate optical transport and core IP routers. A new T-series 40 Gbps Interface Card delivers unprecedented interoperability and service agility over optical transport and IP network infrastructures. The latest features address service provider requirements in the strong installed base of more than 2,500 T-series routers deployed worldwide.

Also in the fourth quarter Juniper and NEC expanded its existing partnership and announced plans to jointly develop IMS-FMC solutions for the service provider market. Juniper and NEC are collaborating to deliver comprehensive, best-in-class solutions for both wired and wireless service providers.

On the enterprise side, Juniper announced its branch office strategy that includes standards-based application acceleration, IP telephony, routing and security designed to work with customers' existing networks and accommodate future growth.

The branch office strategy also includes a range of new implementation services with Juniper WAN Application Acceleration technologies, as well as the integration of Intelligent Communications capabilities from Avaya into the J-series routers offering greater flexibility for customers.

Also announced in the fourth quarter was the integration completion of Juniper's 802.1X components with the new Unified Access Control 2.0 solution, including elements of the Odyssey Access Client and Steel-Belted Radius. As an open standards-based Layer 2 and Layer 3 access control solution, UAC 2.0 can be deployed in a flexible array of deployment scenarios to give enterprises real-time visibility and granular policy control throughout the network.
Market Share Leadership

Juniper continues leadership momentum with its position in the "Leaders" quadrant of Gartner's Magic Quadrant for SSL VPN, North America, 3Q06 and Magic Quadrant for Network Intrusion Prevention System Appliances, 2H06. Juniper's placement in the Leaders quadrant was based on the company's completeness of vision and ability to execute in both the SSL VPN and IPS markets. Further, Infonetics Research, Inc. recognized Juniper as the second-largest security vendor in the industry and overall market share leader in the SSL VPN market. Juniper continued to maintain its Number 2 market share position in Service Provider and high-end enterprise routing for 16 and 4 consecutive quarters respectively according to Synergy Research Group.
Conference Call and Web cast:

Juniper Networks will host a conference call web cast today, January 30, 2007 at 1:45 p.m. (Pacific Time), to be broadcasted live over the Internet http://www.juniper.net/company/investor/conferencecall.html. The conference call will be archived on the Juniper Networks website until February 27, 2007. A replay will be accessible by telephone on January 30, 2007 after 4:00 p.m. Pacific Time through February 6, 2007 by dialing 800-633-8284 (or 402-977-9140), reservation number, 21321540. The replays will be available 24 hours/day, including weekends.

Financial - Extreme Networks Q2 FY07 results

Extreme Networks is the first to release their results for Q2 FY07.

Summary:
For the quarter, net revenue was $86.9 million, a 3.7 percent increase as compared to $83.8 million in the first quarter of fiscal 2007. Net revenue was $92.8 million in the second quarter of fiscal 2006.

Extended:

Extreme Networks, Inc. (Nasdaq: EXTR) today announced revenue results for its fiscal second quarter ended December 31, 2006.

For the quarter, net revenue was $86.9 million, comprised of $71.1 million in product revenue and $15.8 million in services revenue, a 3.7 percent increase as compared to $83.8 million in the first quarter of fiscal 2007. Net revenue was $92.8 million in the second quarter of fiscal 2006.

Revenues in the U.S. were $31.5 million in the quarter, representing 36.3 percent of total consolidated revenue, compared to $34.2 million or 40.9 percent of revenue in the first quarter of fiscal 2007, and compared to $31.9 million or 34.4 percent of revenue in the same quarter a year ago. International revenues were $55.4 million or 63.7 percent of total revenues, compared to $49.6 million or 59.1 percent of revenue in the first quarter of fiscal 2007, and compared to $60.9 million or 65.6 percent of total revenues in the second quarter of last fiscal year.

"We are pleased with the sequential increase in our net revenue results and our further penetration into the service provider customer segment." said Mark Canepa, president and CEO of Extreme Networks. "We are making progress on our organization changes. We are focused on improving the productivity of our North American sales force, and the development of our product portfolio."

Cash, short-term investments, and marketable securities were $204.2 million as of December 31, 2006 compared to $423.4 million as of October 1, 2006. During the quarter, the Company paid off its $200 million in subordinated convertible debentures. Also during the quarter, the Company completed its share repurchase program by repurchasing 0.9 million shares for $3.4 million. Since announcing the program in October 2005 and through December 31, 2006, the Company has repurchased a total of 11.1 million shares for $48.3 million dollars. Other items impacting cash during the quarter were capital expenditures of $1.9 million.

As previously announced, the Company's Board of Directors has appointed a Special Committee of independent directors to conduct a review of the Company's historical practices for stock option grants and accounting for option grants. The Company has announced that it has reached a preliminary conclusion that the appropriate measurement dates for financial accounting purposes of certain stock option grants differ from the recorded grant dates of those awards, and that it expects to restate its prior financial statements. As a result of the on-going investigation and the expected restatement of prior results, the Company is unable to provide detailed GAAP or non-GAAP financial statements for the quarters ended December 31, 2006, October 1, 2006, or the year ended July 2, 2006. The Special Committee has not yet completed its review of historical stock option grant practices. The Company intends to file its report on Form 10-K for the fiscal year ended July 2, 2006 and its reports on Form 10-Q for the quarters ended December 31, 2006 and October 1, 2006 as soon as practicable following the completion of the review.

The Company received a written notification from the staff of The Nasdaq Stock Market stating that the Nasdaq Listing Qualifications Panel has granted the Company's request for continued listing on The Nasdaq Stock Market, subject to the condition that the Company file the Form 10-Qs and Form 10-K by March 21, 2007. The Company is seeking an additional extension of time through the appeal process in the event that it is not able to file its reports with the SEC by the specified date.

Quarterly Business Highlights

• Extreme Networks' BlackDiamond^® 12K switch was selected as a finalist in Light Reading's prestigious "Leading Lights" competition.
• The expansion of our fixed-configuration Summit^® family of products with the addition of new Summit X450 switches. These new switches deliver the performance of high-density gigabit power over Ethernet and 10 gigabit Ethernet uplinks along support for hardware-based routing of IPv4 and IPv6. The switches also deliver the flexibility and stability of the industry's first highly resilient, modular operating system, ExtremeXOS™.
• Extreme Networks enabled the National Center for Data Mining (NCDM) at the University of Illinois at Chicago (UIC), to win the "Bandwidth Challenge" at Supercomputing '06 event.
• CMP Technology Named Extreme Networks the premier hardware provider for the InteropNet at Interop^® Las Vegas 2007 and Interop New York, 2007.
• Extreme Networks announced that it completed the transformation of its North American channel program with a focus on boosting the awareness, solution diversification and loyalty of channel partners.
• Extreme Networks announced new solutions for mid-sized networks, unveiling fixed-price network security and network convergence readiness assessments that can help customers plan, purchase and maintain their mission-critical networks.
• Extreme Networks and Avaya announced activities that align the companies as a premier source of engaged networks for public services organizations, including healthcare, education and state and local government.