Foundry Networks cuts Q1 earnings forecast

Ethernet equipment vendor Foundry Networks cut its outlook for the first quarter, saying earnings will be between $13 million and $14 million for the quarter, or about 8 cents to 9 cents per share, and revenue $148 million to $150 million. Average analyst expectations had been for earnings per share of 17 cents and revenue of just over $163 million. The company will report first quarter earnings on April 24. Foundry, in reporting fourth quarter 2007 numbers in January, hyped its increasing success in the service provider market. Moreover, gear such as Ethernet router was driving increasing carrier spending overall late last year. Now, Foundry says it is seeing some customers delaying purchasing decisions amid a generally unstable economy. It is not clear how many of those cautious customers are service providers, but watch closely as other vendors near their quarterly reports.

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- read this report at MarketWatch

Related articles:
- Foundry touted service provider success earlier this year. Foundry report