Skip to content

Foundry Reports Second Quarter Results and Tenth Profitable Quarter

San Jose, CA - July 25, 2001 - Foundry Networks™, Inc. (Nasdaq: FDRY), today reported financial results for its second quarter ended June 30, 2001.

Net revenue for the second quarter was $88.6 million, which compares to $88.8 million reported for the same period last year. Pro forma net income for the second quarter of 2001, excluding non-cash charges for amortization of deferred stock compensation, was $8.3 million or $0.07 per diluted share, compared to pro forma net income of $23.9 million or $0.19 per diluted share in the second quarter of 2000. This marks the tenth consecutive quarter of profitability for the Company.

Net revenue for the first six months of 2001 was $171.1 million, which compares to $158.8 million reported for the first six months of 2000. Pro forma net income for the first six months of 2001 was $13.6 million or $0.11 per diluted share, compared to pro forma net income of $43.7 million or $0.34 per share for the same period in 2000.

During the second quarter, Foundry successfully introduced more products and features than any other quarter in the history of the Company. During the period, the Company debuted its third generation JetCore ASIC chipset, demonstrated its MPLS Draft-Martini, introduced its 10 Gigabit Ethernet products for LAN, MAN, and WAN, and delivered its second generation platform for the NetIron product. The Company also experienced increased sales activity in the Asia-Pacific region with customers such as China Telecom and WIDE (Widely Integrated Distributed Environments) of Japan. These customers were among the new customers that chose the scalability, availability, and performance leadership of Foundry's solutions.

"It is the tremendous effort, dedication, and commitment of every Foundry employee that has allowed us to execute on our core fundamentals and maneuver through the challenges of the current market environment," said Bobby Johnson, CEO and President of Foundry Networks. "We have also clearly benefited from our product and customer diversification initiatives, introducing many new products and adding over 300 new customers worldwide, with significant wins in metropolitan area networks (MAN). Foundry remains focused on intelligently building our organization, and delivering the highest degree of customer satisfaction as we aggressively pursue global opportunities."

Second Quarter Highlights:

  • On June 25, 2001, Foundry delivered an industry leading Ethernet stackable, the FastIron 4802.
  • On June 25, 2001, Foundry announced technology breakthrough and industry leading features with third generation JetCore ASIC chipset.
  • On June 7, 2001, Foundry and Adam Net teamed up to support the largest Internet exchange in Japan.
  • On June 5, 2001, Lucent Technologies and Foundry joined forces to accelerate the development of Optical Ethernet Metropolitan Area Networks.
  • On June 4, 2001, Foundry demonstrated Multi-Protocol Label Switching (MPLS) Draft-Martini at SuperComm 2001.
  • On May 16, 2001, Foundry announced a complete suite of standards-based 10 Gigabit Ethernet products for high performance LAN, MAN and WAN.
  • On May 15, 2001, Foundry appointed new Vice President of Customer Support to further extend customer service leadership.
  • On May 7, 2001, Foundry and Applied Innovation demonstrated Optical Gigabit Ethernet solution for Metropolitan Area Ethernet network.
  • On May 7, 2001, Foundry delivered bandwidth provisioning, accounting, and billing for metro service providers with new Velocity Management module.
  • On May 1, 2001, Foundry demonstrated multivendor Multi Protocol Label Switching (MPLS) for IP traffic engineering.
  • On April 5, 2001, Foundry was named a 2001 finalist by Network Computing for Well-Connected Award.

Business Outlook
"We continue to have strong confidence in the resilient, long term demand for networking products and the Company's growth potential," noted Mr. Johnson. "However, because the macroeconomic picture for the technology sector in the short term remains cloudy, we will not be providing financial guidance for the current quarter."

Conference Call
Foundry Networks will host a conference call today to further discuss these results at 2:00 p.m. PDT. The call can be accessed via a webcast at www.foundrynet.com. A Web replay will also be available after the call at this same Web address.

Safe Harbor Statement
This press release contains forward-looking statements 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 a statement by Bobby Johnson regarding the Company's long term growth potential and demand for technology products. The forward looking statements in this press release 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. Actual results could differ materially from those projected in our forward looking statements. Investors should review the risk factors described in more detail in our most recent Annual Report on Form 10-K and most recent Quarterly Report on Form 10-Q available from Foundry or from the SEC at www.sec.gov. Foundry assumes no obligation to update the forward looking statements contained in this press release.

About Foundry Networks

Foundry Networks, Inc. (NASDAQ: FDRY) is a leading provider of high-performance enterprise and service provider switching, routing, security and Web traffic management solutions, including Layer 2/3 LAN switches, Layer 3 Backbone switches, Layer 4-7 application switches, wireless LAN and access points, metro routers and core routers. Foundry's customers include the world's premier ISPs, metro service providers, and enterprises, including e-commerce sites, universities, entertainment, health and wellness, government, financial and manufacturing companies. For more information about the company and its products, call 1.888.TURBOLAN or visit www.foundrynet.com.

Contacts