Foundry forges forward as sales improve
Product upgrades launched amid better fourth-quarter results
Foundry Networks has launched upgraded versions of its BigIron and NetIron switches and unveiled improved fourth-quarter results.
"We've been seeing strong sales in the UK for a while," said Andy Palmer, Foundry's UK managing director. "Germany is also showing signs of a good recovery."
Sales for the last three months of 2003 were $111.1m, up nine per cent from the same period in 2002. Profit also rose - from $10.5m in the fourth quarter of 2002 to $24.1m in the final quarter of 2003.
"The firm seems to have upped its profile - Foundry is putting some effort into it now," said Clive Longbottom, services director at analyst Quocirca.
"It is delivering standardised products and working to get partners on board - more power to their elbow."
On an annual basis, Foundry's turnover for 2003 was $399.6m, compared with $300.7m in 2002. Foundry also updated its BigIron and NetIron chassis, announcing new modules for both line-ups.
A 40-port Gigabit-over-copper module and a two-port 10 Gigabit Ethernet module with XENPAK optics will sit beside four-port 10GB modules with XENPAK and 40-port fibre-based Gigabit modules.
The new arrivals have pushed prices on older kit in Foundry's range down.
"A 10GB port is now the same price as 10 single Gigabit ports," said Palmer. "10GB also gives the users a road-map and makes it easier for them to upgrade. There are massive deployments of Gigabit to the desktop, and that is helping as well."
Longbottom agreed. "Gigabit is becoming mainstream in business, and Gigabit to the desktop means most companies need a 10GB backhaul. It all depends on whether Foundry can keep it going."