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Foundry Takes Its Lumps

Foundry Networks Inc. (Nasdaq: FDRY) reported higher revenues for its third quarter, but still missed analysts' expectations.

The switch maker posted revenues of $102.5 million, up slightly from $101.7 million reported in the same period last year. But the company fell just short of the $103.17 million in revenues analysts were looking for.

It earned 11 cents a share, which is what analysts expected, and it showed sequential growth over the second quarter's $97.8 million.

Foundry CEO Bobby Johnson says the vendor dodged the "lumpiness" that characterized past quarters. Earlier this year, for the second successive quarter, Foundry missed analysts earnings estimates, thanks to some large orders arriving at the very end of the month (see Foundry Haunted by 'Lumpiness').

”We saw less of a back-end loaded quarter than the previous quarter,” Johnson says. But he added that Foundry’s largest deals with the federal government, which makes up 28 percent of its total revenues, came in the last two weeks of Q3.

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