Sonic Foundry Cuts Expectations - Surely isn't good for tomorrow.
"``These latest projections, modified from earlier higher projections, reflect a shift over the last few weeks in the pattern of communications infrastructure capital spending,'' said Bobby Johnson, Chief Executive Officer. "
Tuesday December 19, 4:01 pm Eastern Time
Press Release
Foundry Networks Provides Fourth Quarter Outlook
SAN JOSE, Calif.--(BUSINESS WIRE)--Dec. 19, 2000--Foundry Networks(TM), Inc. (Nasdaq:FDRY - news), a leader in high-performance end-to-end IP infrastructure networking products, today provided its financial outlook for the fourth quarter ending December 31, 2000.
Based on current sales information reflecting reduced capital expenditures by Internet Service Providers and E-commerce Sites, the Company anticipates fourth quarter net revenue of $100 million to $110 million. Gross margins remain strong and are expected to be in the 62-64% range. Pretax operating profits are expected to be in the $20 million to $26 million range. Earnings per share for the fourth quarter, excluding non-cash charges for amortization of deferred stock compensation, are expected to be in the range $0.11 to $0.14 per diluted share, subject to final audit.
``These latest projections, modified from earlier higher projections, reflect a shift over the last few weeks in the pattern of communications infrastructure capital spending,'' said Bobby Johnson, Chief Executive Officer. ``However, despite recent challenges in the industry, we think Foundry is very well positioned to build upon the price/performance benefits of our end-to-end IP infrastructure solutions. Foundry maintains industry-leading gross margins, which we believe will remain solid as the Company continually introduces innovative new products.''
The Company is completing its normal planning process for the upcoming year and intends to provide sales and income statement guidance for fiscal year 2001 when it announces its final results for the current year on or about January 16, 2001, in accordance with its normal practice. Although fiscal year 2001 guidance is expected to be slightly lower than earlier estimates, we still expect to show a strong year-over-year improvement.
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.
Safe Harbor Statement
This press release contains forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by that section. These forward-looking statements include the financial projections for the fourth quarter and fiscal 2001, and statements from Bobby Johnson regarding Foundry's historic sales patterns, future growth prospects, financial metrics and new product pricing, performance and availability. The expected results described in this statement are subject to a number of risks and uncertainties, including the strength of the overall economy and the high-technology arena in particular, continued demand for Internet related equipment and acceptance of Foundry's current and future products, Foundry's ability to introduce new and superior products and predict future industry standards, the quality of new products offered by Foundry's competitors in the intensely competitive networking market, and Foundry's ability to attract and retain skilled employees in an intensively competitive hiring market. Actual results may differ materially due to these and other factors. The matters discussed in this press release also involve risks and uncertainties described from time to time in Foundry's filings with the Securities and Exchange Commission. In particular, see the Risk Factors described in Foundry's final Prospectus dated September 27, 1999 for its initial public offering as well as its most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K. Foundry assumes no obligation to update the forward-looking information contained in this press release.
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Contact:
Foundry Networks
Tim Heffner, 408/586-1700 (CFO)
theffner@foundrynet.com
Michael Iburg, 408/586-1894 (Treasurer)
miburg@foundrynet.com
or
Morgen-Walke
Jason Golz/Quynh Nguyen, 415/296-7383 (IR)
qnguyen@mwa-sf.com
Peter DeLauzon (Financial Media)
pdelauzon@mwa-sf.com |
