* Third quarter was good to Foundry Networks
EDITOR’S NOTE: The name of this newsletter will change slightly next month, from “High-Speed LANs” to simply “LANs.” The focus remains the same; it’s just that the name is being changed to more accurately reflect the content. Thanks for reading.
Foundry Networks this week reported record quarterly revenue for the third quarter of 2006 of $118.8 million.
Like other technology companies, Foundry is under investigation for how it issued stock options, so the company’s financial statement does not include numbers on earnings or other balance-sheet items.
The revenue of $118.8 million was up from the $108.4 million reported last quarter and the $106.6 million reported in the third quarter of 2005. Interestingly, Foundry has a reserve of cash and marketable securities worth $840 million, up $20 million from the previous quarter.
Other interesting data also emerged, such as the fact that Foundry gets 20% of its revenue from the federal government – which is up substantially from 13% of its revenue in the second quarter. Plus, Foundry says its revenue from Japan was up 15% sequentially.
In addition, Foundry said its BigIron RX and FastIron SuperX families of chassis-based switches for enterprise companies grew 17% in revenue from one quarter to the next, and the two product families now represent about 30% of Foundry’s total product revenue. The company’s ServerIron chassis, used to connect server farms to the rest of a network, grew 50% from the second quarter. In the service provider market, Foundry says it now has a hundred customers deploying its NetIron XMR and MLX MPLS router families.
In related news, Foundry noted that Gartner has called the company a “visionary” company in its Magic Quadrant report, largely on the basis of its innovation in key technologies related to LANs.
