On its conference call Thursday, Foundry execs highlighted a decline in the companys federal spending as its sore spot for the quarter. The U.S. government, which traditionally accounts for around 28 percent of Foundry revenues, only accounted for 23 percent of its revenues in the quarter.
Foundry CEO Bobby Johnson explained that the company is feeling the effects of events in Iraq. The one area that could have been more productive for us was the U.S. Federal Government sector -- it was greatly affected by the shifting of budgets to the Iraqi war effort.
Money is being redirected to bombs and bullets as opposed to infrastructure."
Johnson, who faced a barrage of questions on the future of Foundry's Federal business, admitted that some deals scheduled for December did not go through until January. Other anticipated government deals, however, may have disappeared into the ether. I dont known if these projects will be funded or not, he said.
On the product side, Johnson promised to follow up the companys newly launched 10-Gig SuperX switches with its new Internet and Metro Router (IMR) (see Foundry Flashes SuperX Switches).
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