Foundry Networks, Incorporated (FDRY)

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Foundry Networks cuts first-quarter forecast
By Jeffry Bartash, MarketWatch
Last update: 9:53 a.m. EDT April 11, 2008
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WASHINGTON (MarketWatch) -- Foundry Networks, a maker of routers and switches, reduced its financial forecast on Friday, saying some customers delayed orders because of a weaker U.S. economy.
In early trades, Foundry stock fell 2.5% to $11.30.
Foundry now says it expects to report first-quarter earnings of $13 million to $14 million, or 8 cents to 9 cents a share, including stock-based compensation. That compares to income of $9.1 million, or 6 cents a share, in the comparable 2007 first quarter.
Revenue is seen totaling $148 million to $150 million. In the year-earlier quarter, Foundry produced $135.8 million in sales.
The Santa Clara, Calif.-based company had been forecast to earn 17 cents a share on revenue of $163.4 million, according to an average estimates of analysts compiled by FactSet Research.
"Entering the quarter, we expressed our view that Foundry would experience typical seasonality," said Bobby Johnson, chief executive of Foundry said in a statement. "However, during the first quarter, a more challenging macroeconomic environment evolved from the financial market crises, which we believe led some customers to delay their purchase decisions."
Foundry plans to issue full quarterly results on April 24. End of Story
Jeffry Bartash is a reporter for MarketWatch in Washington.

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