FDRY..Revenues Increase 28% Sequentially to $113.2 Million
Layer 3 Gigabit Ethernet Backbone Ports Grow 54% Sequentially NetIron Internet Routers More Than Double to Represent 9% of Revenues
SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 17, 2000-- Foundry Networks(TM), Inc. (Nasdaq:FDRY - news), a leader in high-performance end-to-end IP infrastructure networking products, today announced financial results for its third quarter ended September 30, 2000.
The Company generated record net revenue of $113.2 million for the third quarter, compared to $88.8 million in the second quarter of 2000 and $38.9 million in the third quarter of 1999, increases of 28% and 191%, respectively. Net income for the third quarter, excluding non-cash charges for amortization of deferred stock compensation, was $28.5 million or $0.22 per diluted share, compared with $23.5 million or $0.19 per share in the second quarter of 2000, an increase of 21%. Net income for the third quarter, including the amortization of deferred stock compensation, was $27.2 million or $0.22 per share, compared with $22.5 million or $0.18 per share in the second quarter of 2000, an increase of 21%.
Net revenue for the nine months ended September 30, 2000 was $272.0 million, compared with $78.4 million for the same period in 1999, an increase of 247%. Net income for the nine months ended September 30, 2000, excluding amortization of deferred stock compensation, was $72.1 million or $0.57 per share, compared with $13.7 million or $0.25 per share for the same period in 1999. Net income for the nine months ended September 30, 2000, including amortization of deferred stock compensation, was $67.8 million or $0.53 per share, as compared with $9.1 million or $0.08 per share for the same period in 1999.
``Foundry continues to grow rapidly as deployment of our end-to-end IP infrastructure solutions accelerates,'' commented Bobby Johnson, President and CEO of Foundry Networks. ``We are delighted to gain increased traction with our NetIron product family in the Internet router market while aggressively ramping shipments of our high port density Layer 3 Gigabit Ethernet switches. Particularly encouraging during the quarter was the fact that an increasing percentage of customers began accepting and deploying all three product lines in their networks. As a result, we ended the quarter with over 60 Internet router customers. We are also pleased with the success rate of our expanding global sales force in penetrating new accounts while continuing to serve repeat customers. Foundry remains firmly committed to rapid growth and high profitability, and this quarter was no exception.''
``Overwhelming demand for our high-end Internet routers and Layer 3 Gigabit Ethernet switches led the way to record revenues this quarter,'' stated Tim Heffner, Chief Financial Officer of Foundry Networks. ``Several elements contributed to Foundry's record breaking third quarter. For example, we maintained industry-leading gross margins of greater than 65% and added nearly 100 new employees.''
Third Quarter Highlights
On September 28, 2000, Foundry's Global Ethernet was named the winner, in the Carrier Network Infrastructure Category of the Best of Show Awards competition, at NetWorld+Interop 2000 Atlanta by CMP Media's InternetWeek and Network Computing.
On September 27, 2000, Foundry announced the FastIron(TM)III high-density Layer 3 LAN switch which delivers high port density with redundant management, multi-protocol, and extensive security features at industry-leading price/performance for enterprise core and wiring closet LAN distribution networks.
On September 26, 2000, Foundry announced three new products: the ServerIron4802 based on a new purpose-built Application Specific Integrated Circuit (ASIC) technology that provides integrated Layer 2 through Layer 7 Internet traffic and content management switching; IronWare(TM) release 7.1 software adding Global Ethernet and Bandwidth Management capability to the BigIron(TM) Layer 3 switch family of products; Global Ethernet technology, which combines the best features of Ethernet and SONET, and delivers native broadband Ethernet solutions to local, Metropolitan, regional and global networks.
On September 26, 2000, Foundry and Stream Intelligent Networks Corp. announced that Stream will deploy Foundry's NetIron(TM) Internet backbone routers with Foundry's innovative Global Ethernet technology to deliver end-to-end Metropolitan Gigabit Ethernet services.
On September 25, 2000, Foundry announced the successful completion of interoperability testing for both Packet Over SONET (POS) and Gigabit Ethernet interfaces between Foundry's NetIron Internet backbone routers and CIENA's MultiWave Metro(TM) intelligent optical transport systems.
On September 21, 2000, Foundry announced that EarthLink will deploy Foundry's NetIron400 Internet routers complete with OC-12c/STM4 Packet Over SONET/SDH interfaces to support their OSPF and BGP4 networks.
On September 21, 2000, Foundry announced that Yahoo! Inc. deployed Foundry's NetIron800 Internet routers and ServerIron Layer 4-7 Web switches at the core of Yahoo!(TM)GeoCities' network.
On September 18, 2000, Foundry announced that Korea Thrunet Co., Ltd., Korea's leading broadband Internet-access service provider, deployed Foundry's BigIron Layer 3 switches and SeverIron Layer 4-7 Web switches to enhance its metropolitan and national backbone networks.
On September 12, 2000, Foundry announced the immediate availability of ServerIronXL/TCS, the industry's most powerful content aware cache switch to build intelligent content networks that rout traffic based on content rather that just IP addresses.
On August 8, 2000, Foundry announced details of its strategic partnership with Novell for the Novell Content Exchange Web acceleration service.
On August 2, 2000, Foundry announced that its BigIron 4000 Layer 3 Gigabit Ethernet switch was awarded Network World's `World Class Award' based on its performance and feature set by the Applied Research Institute.
On July 11, 2000, Foundry announced that Focal Communications Corporation selected Foundry's family of BigIron Layer 3 switches for its Focal Internet eXchange (FIX) platforms to deliver innovative high-performance Internet services.
About Foundry Networks
Foundry Networks, Inc. (Nasdaq:FDRY - news) is a leader in high-performance, end-to-end switching and routing solutions, including Internet routers, Layer 3 switches and Layer 4-7 Internet traffic and content management switches. Foundry products are installed in the world's largest ISPs, including AOL (NYSE: AOL - news), EarthLink (Nasdaq: ELNK - news), AT&T WorldNet, MSN and Cable & Wireless (NYSE: CWP - news). Foundry products are also installed in large enterprise, entertainment, pharmaceutical and manufacturing companies as well as search engines, e-commerce sites, universities and government organizations. Some of these customers include: The University of Washington, University of Miami, LucasFilm, Yahoo! (NASDAQ: YHOO - news), LTV Steel (NYSE: LTV - news), Incyte Pharmaceuticals (NASDAQ: INCY - news), U.S. Army, Air Force and Navy, NASA and NIH. For more information about the company and its products, call 1.888.TURBO.LAN or visit our web site at www.foundrynetworks.com.
Note to Editors: Foundry Networks, ServerIron, BigIron, FastIron, IronWare, and NetIron are trademarks of Foundry Networks, Inc. All other trademarks are the sole property of their respective holders. |
