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War Fogs Foundry's Numbers

Foundry reports record annual revenues but is feeling the strain of the war in Iraq

Foundry Networks Inc. (Nasdaq: FDRY) said yesterday that its fourth-quarter profits had fallen by 31 percent and its revenues were off by 6 percent, thanks to a decline in federal spending. The switch maker posted quarterly revenues of $104.8 million, down from $111.1 million from the same period of the previous year. This was below analysts' estimates of $106.67 million (see Foundry Profits in Q4).

The company earned $16.7 million, or 12 cents a share, which was in line with expectations. This compares to earnings of $24.1 million, or 17 cents per share, for the same period of 2003.

Foundry did report record full-year revenues of $409.1 million, which was up from the $399.6 million it reported in 2003. But that, too, was a disappointment, as analysts were looking for revenues of $411.3 million.

The vendor's full-year 2004 profits were $48 million, or 34 cents a share, which was down from the $75.1 million, or 55 cents a share, it earned in 2003.

Excluding the expense of Foundrys litigation settlement with Nortel Networks Corp. (NYSE/Toronto: NT), however, the company's net income for 2004 was $66.7 million, or 47 cents a share, which was in line with analysts' expectations (see Nortel, Foundry Settle Suits).

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