Foundry: Strong trends from North American service provider sales
By Brad Reese on Tue, 07/29/08 - 3:09am.
According to RBC Capital Markets, book to bill at the end of Foundry's 2nd quarter was greater than 1.0 with strong trends from North American service provider sales.
RBC Capital Markets Managing Director - Mark Sue commented to yours truly:
 "Foundry posted strong 2Q08 results with revenues of $161M (+7% QoQ) vs. our estimate of $155M while non-GAAP EPS was a penny better than the street and inline with our estimate of $0.17."
"A final positive note in our view as the company is now being acquired by Brocade which in term had previously absorbed McData." |
"Book to bill at the end of Foundry's quarter was greater than 1.0 with strong trends from North American service provider sales."
"North America was 58% during the quarter vs. 53% in the prior quarter."
"EMEA was approx. 15%, essentially flat in terms of absolute dollars."
"Federal sales were 17.3% vs. 19%, down sequentially as anticipated."
"Asia and Japan sales were approximately 10%."
"Foundry's cash at the end of the quarter was $950M and the acquisition by Brocade totals $2.9B or approximately $18.50 in cash plus 0.0907 shares of BRCD stock for each share of FDRY common stock."
"We think it's a good deal for Foundry though it hasn't been without bumps recommending Foundry whose revenues had a few lumps."
"Our final price target considering our view that the deal is likely to go through without any major issues is $19.00."
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