Feeds

Foundry issues second profit warning

Networking stock prices dive due to telecoms slowdown

  • alert
  • submit to reddit

Designing a Defense for Mobile Applications

Shares in US networking equipment maker Foundry Networks almost halved in value yesterday after it issued a second profit warning.

Foundry, which completed a highly-successful IPO in 1999, said its earnings would be well below even the lowered expectations it had set in an earlier profit warning. The firm's second revision of fourth quarter results put its estimated net revenue at between $100 million and $110 million.

"These latest projections, modified from earlier higher projections, reflect a shift over the last few weeks in the pattern of communications infrastructure capital spending," said Bobby Johnson, Foundry's chief executive officer.

Foundry has attracted attention as one of the new breed of Gigabit Ethernet firms whose equipment offers a performance lead over Cisco Systems. Consolidation in the US telecoms market has resulted in a slow-down of demand for the high-end networking equipment Foundry supplies.

In after-hours trading Foundry's shares dropped from $33 to $16.75. Other networking players were also affected by the news with shares in Cisco falling 6 per cent and Juniper Networks 19 per cent. ®

Related stories

Cisco looks rosy, 3Com peaky

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
Attack of the clones: Oracle's latest Red Hat Linux lookalike arrives
Oracle's Linux boss says Larry's Linux isn't just for Oracle apps anymore
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
FLAPE – the next BIG THING in storage
Find cold data with flash, transmit it from tape
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.