Foundry Networks 4Q Profit Jumps

Foundry Networks 4th-Quarter Profit, Sales Jump

"NEW YORK (Associated Press) - Networking equipment maker Foundry Networks Inc. said Tuesday its fourth-quarter profit jumped 84 percent, helped by growing sales to communications service providers and the U.S. government.

Foundry's shares nonetheless fell in after-hours trading.

The company earned $28.9 million, or 18 cents per share, up from $15.7 million, or 10 cents per share, a year earlier. Excluding stock option costs and other items, the company earned 24 cents per share in the latest quarter.

Revenue rose 28 percent to $168.7 million from $132 million.

Analysts, on average, were expecting a profit of 23 cents per share, excluding stock option costs, on sales of $166.1 million, according to a poll by Thomson Financial.

Banc of America Securities analyst Tim Long had expected Foundry's results to beat his expectations of a profit of 24 cents per share.

For the full year, Foundry earned $81.1 million, or 52 cents per share, up from $38.7 million, or 26 cents per share, a year earlier.

Revenue rose 28 percent to $607.2 million from $473.3 million.

The company been diversifying its federal government business, increasing its reach into the service provider market and expanding its share of the enterprise market, Bobby Johnson, president and chief executive, said in a statement.

Shares fell 92 cents, or 6.2 percent, to $14 in after-hours electronic trading. The stock had closed up 52 cents, or 3.6 percent, at $14.92 in the regular session. "

Perhaps your IT guy has finally realized Cisco 'aint the only game in town. Or, maybe Foundry's BI-RX-32 has started turning heads. Either way the race just heated up and we've got a front row seat!