Foundry Networks (MM) (FDRY) News

FDRY: Insider trading charges:

http://www.sec.gov/litigation/litreleases/2013/lr22660.htm

BRCD is a buy with Foundry inside:
Brocade and Foundry Networks Announce Signing of Amendment to Definitive Agreement for Acquisition of Foundry by Brocade
Date : 11/07/2008 @ 6:32PM
Source : PR Newswire
Stock : Foundry Networks (MM) (FDRY)
Quote : 16.66 0.0 (0.00%) @ 2:05AM

Brocade and Foundry Networks Announce Signing of Amendment to Definitive Agreement for Acquisition of Foundry by Brocade
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Brocade(R) (NASDAQ:BRCD) and Foundry Networks(R), Inc. (NASDAQ:FDRY) today announced that they have signed an amendment to the definitive agreement, which provides for the acquisition of the outstanding shares of Foundry Networks by Brocade. Under the revised terms, Foundry stockholders would be entitled to receive $16.50 per share in an all-cash transaction at the closing of the deal, as previously announced by the companies on Oct. 29, 2008.

In addition, Foundry stockholders may receive the proceeds of the sale of Foundry's portfolio of auction rate securities -- up to approximately $50 million in the aggregate -- calculated on a fully diluted basis based on the treasury stock method, if Foundry is successful in liquidating its portfolio of these securities prior to the close of the acquisition. It is anticipated that such amount, if any, would be distributed shortly before the closing of the acquisition through a dividend to Foundry stockholders.

Brocade expects to finance the acquisition from various financing sources, including cash on hand at both companies and the net proceeds from a $1.1 billion term loan facility which has already been deposited into a restricted Brocade custody account pending the closing of the acquisition of Foundry and other customary release conditions.

"We are excited about this transaction and believe that the combination will provide a number of strategic and financial benefits that we expect will be well-received by the customers of both companies," said Mike Klayko, CEO of Brocade. "This will help to solidify Brocade's position as a proven, high-performance networking leader for today's most demanding, data-intensive organizations."

The two companies originally entered into an agreement on July 21, 2008. The revised agreement has been approved by the boards of directors of Brocade and Foundry, and the board of directors of Foundry has unanimously recommended that Foundry stockholders vote in favor of the revised transaction. Foundry stockholders must also vote on the revised agreement in a special meeting currently expected to be held in December 2008. Pending Foundry stockholder approval, the companies expect to close the transaction in late December 2008, subject to the satisfaction of customary terms and conditions.

good overall look into networks!
orningstar.com
These Networking Firms Offer Growth and Value
Wednesday October 15, 3:38 pm ET
By Grady Burkett

Shares of telecom equipment and data networking firms have been on a steady slide for the better part of a year, and they've taken a severe beating along with the rest of the market. The Dow Jones U.S. Telecom Equipment Index, which consists of familiar names such as Cisco (NasdaqGS:CSCO - News) and Motorola (NYSE:MOT - News), as well as less-familiar niche vendors like Finisar (NasdaqGS:FNSR - News) and Sonus (NasdaqGS:SONS - News), is down about 30% since August and has been cut nearly in half over the past 12 months. Near-frozen credit markets, a down-trodden U.S. economy and the threat of a protracted global recession have prompted investors to indiscriminately sell equities, especially those that face significant uncertainty in the near term.

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The outlook for the telecom equipment and networking industries over the next few quarters isn't good. Telecom equipment vendors have been dealing with weak demand since 2007, and further deterioration seems likely, given the current environment. Demand for networking gear is also likely to be put on hold at many firms, as managers wait before spending. Many telecom and networking equipment firms have also relied on Asia and emerging markets to fuel growth recently, with a weak dollar further boosting revenues and cash flows. Unfortunately, the European economy is deteriorating and previously fast-growing markets such as China, India, and Brazil are quickly losing steam. Moreover, a stronger dollar will likely turn what had been a nice boost into a significant head wind.

Turmoil in the capital markets is causing significant disruption to the business plans of firms in the telecom equipment industry. Chinese giant Huawei recently chose to delay the sale of its mobile phone business until a better selling environment materializes. This decision doesn't reflect well on the value of Motorola's wireless phone unit and could hinder its ability to spin off the business next year. Meanwhile, embattled Nortel (NYSE:NT - News) felt compelled to offer up its fast-growing Metro Ethernet business to raise cash and streamline its business at a very inopportune time. And, investors are skeptical that any deal can get done in this environment. FoundryâEuro�s (NasdaqGS:FDRY - News) stock price fell below $14 at one point, more than 20% lower than the cash portion of BrocadeâEuro�s (NasdaqGS:BRCD - News) buyout offer, despite announcements that Brocade had secured the necessary financing and that the deal is expected to close this year. At this point, fundamentals seem to be taking a back seat to emotions.

The good news is that all of this fear and turmoil has created some compelling buying opportunities. Growth investors can find promising opportunities without paying a hefty premium, and value investors are now finding opportunities that didn't exist just months ago. Given all of the bargains, we recommend that both sets of investors screen out firms with shaky balance sheets. We believe Cisco fits the bill beautifully for most investors and that the stock is compelling currently. But, given that firm's iconic status, we dug a bit deeper to find four less well-known companies that we believe are also trading at very attractive valuations. The first two, Juniper (NasdaqGS:JNPR - News) and F5 (NasdaqGS:FFIV - News), are well positioned for continued long-term growth. The last two, Radware (NasdaqGS:RDWR - News) and Extreme Networks (NasdaqGM:EXTR - News), fall into our "too cheap too ignore" bucket, as each is trading at a market price that is near or below the net cash that the company holds on its balance sheet.

Juniper Networks, Inc.
Morningstar Rating: 5 Stars
From its start in the late 1990s, Juniper has catapulted itself into the number-two position in service-provider routing, enterprise routing, and overall network security. The convergence of network infrastructure will necessarily progress toward Internet protocol-based systems, creating an increased dependence on JuniperâEuro™s IP-based network equipment. Although near-term economic weakness will likely mute demand for routers, we think JuniperâEuro™s long-term growth prospects remain intact.

F5 Networks, Inc.
Morningstar Rating: 5 Stars
During the last several years, F5 has doubled its share of the application switch market--largely at Cisco's expense--by emphasizing a software-based approach to traffic management. F5 has incorporated more features into its switches, including security and wide-area network optimization, which in turn makes its customers more reliant on its devices and less likely to change vendors. We believe that F5 should continue to benefit from the proliferation of bandwidth-intensive applications, such as video, and we expect the companyâEuro™s revenue growth to average roughly 16% during the next five years.

Radware, Ltd.
Morningstar Rating: 5 Stars
In 2006, Radware's ineffective marketing, confusing product line, and inability to attract new selling partners began to take its toll on growth, and the company's market share steadily declined from 9% to roughly 6%. Late in 2006, management began taking steps to fix the Radware's problems, reorganizing its poorly performing U.S. salesforce and making its switches simpler to manage while incorporating more functions. After two years of declining revenues within the United States, Radware is showing improvement in this geography. We believe that Radware's current net cash balance of more than $150 million, or nearly $8 per share, mitigates much of the downside risk from its current share price.

Extreme Networks, Inc.
Morningstar Rating: 4 Stars
Extreme Networks has been working to fix a litany of issues over the past five years, from declining revenues and inconsistent profitability to key employee defections. Although we don't believe that Extreme can compete effectively against industry giants like Cisco and Huawei over the long haul, the company does have a decent portfolio of technology patents; key partnerships with Siemens (NYSE:SI - News), Ericsson (NasdaqGS:ERIC - News), and Avaya; and more than $1.75 per share in cash equivalents on the balance sheet. For now, we believe these assets put a backstop on Extreme's stock price.

Brocade gets $1.225 bln loan to finance Foundry deal

By Sue Chang
Last update: 4:46 p.m. EDT Oct. 7, 2008
SAN FRANCISCO (MarketWatch) -- Brocade said late Tuesday it entered into a $1.225 billion secured credit facility to partly finance its buyout of Foundry Networks (FDRY:foundry networks inc.

FDRY 16.26, -0.91, -5.3%) . In addition to the funds, Brocade expects to raise up to $400 million in additional financing and using cash on hand to fund the deal. The proposed buyout has received regulatory clearance and approval from the boards of each company. Shareholders of Foundry are scheduled to vote on the deal on Oct. 24. The buyout is expected to close in the fourth quarter.

Foundry Networks initiated with "buy" - update
05/08/08 - Wedbush Morgan Securities

NEW YORK, May 8 (newratings.com) - Analysts at Wedbush Morgan initiate coverage of Foundry Networks (FDRY) with a "buy" rating. The 12-month target price is set to $15.

In a research note published this morning, the analysts mention that the company has significant potential to expand its market share in the core businesses. Foundry Networks is poised to return to growth, benefiting from its recently refreshed and diversified product portfolio, the analysts say. The company is well positioned to withstand a weak economy and sustain/expand its share going forward, Wedbush Morgan adds.

http://www.newratings.com/en/main/company_headline.m?id=1743400

----also----


Foundry Networks honored with 2008 'Best of Interop' Green Award
Posted on
Monday, 5 May 2008


Press Release Content


Foundry selected as being most green from more than 200 submissions.


Foundry Networks®, Inc. (NASDAQ: FDRY), a performance and total solutions leader for end-to-end switching and routing, announced it has been selected by InformationWeek, the leading multimedia business technology brand, and Interop, the leading global business technology event series, for the ‘Best of Interop' Green Award.

Selected from more than 200 submissions in all Best of Interop categories, Foundry Networks was singled out for its ability to deliver industry-leading performance while minimizing power, space and cooling consumption in its switching, routing and application delivery controller (ADC) product set and solutions.

Foundry'sTM networking solutions address these critical green issues head-on by delivering highly dense, scalable and power efficient solutions to enable greater flexibility and capabilities for organizations worldwide.

As the winner of the 2008 Best of Interop Green Award, Foundry was hand-selected by InformationWeek's panel of expert judges. Each year, Best of Interop winners prove to be the key players in the continuing evolution of business technology.

The Best of Interop Awards are designed to help IT and network managers shorten the evaluation process in assessing new technology products. By identifying innovative products debuted at Interop, the Best of Interop Awards assist in the search for creative solutions.

"The 2008 winner of the Best of Interop Green Award, Foundry Networks, has adopted an eco-friendly approach to their products," said Art Wittmann, editor for InformationWeek. "We congratulate Foundry Networks for leading the way in green computing."

Attention to green initiatives in the networking space are extremely important to IT managers, not only to be more ecologically sound, but also to significantly lower ongoing operating costs and to create highly dense and powerful switching and routing systems to enable efficient business growth.

Organizations are running out of physical space, networking capacity and power due to dramatic business-critical application growth, many of these applications require robust disaster recovery technologies as safeguards, and the new server technologies deployed to meet application growth require more than current data center infrastructures can deliver.

As part of Foundry's ongoing efforts to advance the greener, next-generation data center, the new interface modules for the BigIron® RX Series switches and the NetIron® MLX Series routers will deliver the industry's highest 10 gigabit Ethernet (10GbE) and gigabit Ethernet (GbE) density of up to 512 ports of 10GbE and 1536 ports of GbE in a single system while also dramatically reducing power per actual gigabit of performance.

The BigIron 16-port 10GbE SFP+ module (RX-BI16XG), and NetIron MLX 48-port GbE MRJ21 module (NI-MLX-1Gx48-T) deliver exceptional flexibility and scalability for advanced data centers and high-performance computing (HPC) applications1. With these new high-density interface modules, the BigIron RX Series switches and NetIron MLX Series routers now deliver more than twice the 10GbE and GbE density of their nearest competitors.

Organizations can be confident that data center expansion and HPC growth will be manageable and environmentally friendly through Foundry's industry-leading routers and switches and intelligent best-of-breed networking solutions.

"We are honored to take home the Best of Interop Green Award," said Bobby Johnson, president and chief executive officer for Foundry Networks. "Our focus on engineering leadership has allowed Foundry to create powerful high-performance networks with increased density and energy efficient attributes that enable businesses to grow effectively within the capital constraints and environmental issues facing enterprises and service providers today. With more than 200 other submissions to select from, receiving the Best of Interop Green Award is a testament to Foundry's ongoing focus on innovation and edge-to-core solutions."

http://www.arabianbusiness.com/press_releases/detail/17804

Foundry Networks cuts first-quarter forecast
By Jeffry Bartash, MarketWatch
Last update: 9:53 a.m. EDT April 11, 2008
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WASHINGTON (MarketWatch) -- Foundry Networks, a maker of routers and switches, reduced its financial forecast on Friday, saying some customers delayed orders because of a weaker U.S. economy.
In early trades, Foundry stock fell 2.5% to $11.30.
Foundry now says it expects to report first-quarter earnings of $13 million to $14 million, or 8 cents to 9 cents a share, including stock-based compensation. That compares to income of $9.1 million, or 6 cents a share, in the comparable 2007 first quarter.
Revenue is seen totaling $148 million to $150 million. In the year-earlier quarter, Foundry produced $135.8 million in sales.
The Santa Clara, Calif.-based company had been forecast to earn 17 cents a share on revenue of $163.4 million, according to an average estimates of analysts compiled by FactSet Research.
"Entering the quarter, we expressed our view that Foundry would experience typical seasonality," said Bobby Johnson, chief executive of Foundry said in a statement. "However, during the first quarter, a more challenging macroeconomic environment evolved from the financial market crises, which we believe led some customers to delay their purchase decisions."
Foundry plans to issue full quarterly results on April 24. End of Story
Jeffry Bartash is a reporter for MarketWatch in Washington.

http://www.marketwatch.com/news/story/foundry-networks-cuts-first-quarter-forecast/story.aspx?guid=%7B57703762%2D1D23%2D48BF%2D9CDC%2D9692414592F2%7D&siteid=yhoof

Hostway Invests in Foundry Networks' Application Delivery Switches to Provide Enhanced Global Server Load Balancing Service
Wednesday March 26, 10:55 am ET
Solution Features Multi-Site Redundancy and Disaster Recovery to Ensure Business Critical Web Sites Operate Nonstop for Enterprise Customers

SANTA CLARA, Calif. and LONDON, March 26, 2008 (PRIME NEWSWIRE) -- Foundry Networks(r), Inc. (NasdaqGS:FDRY - News), a performance and total solutions leader for end-to-end switching and routing, today announced that Hostway Corporation, a specialist managed Web hosting services and domain name registration company, has selected its ServerIron(r) 4G application delivery switches to provide new Global Server Load Balancing (GSLB) services to enterprise customers.

Founded in 1998, Hostway is privately owned and profitable with more than 600,000 enterprise and consumer customers worldwide. Its top enterprise clients include well-known names, such as Wikipedia, Fox Sports, Honda and KPMG. The company is one of the top five largest independent Web hosting companies in the world and the only truly global provider dedicated solely to Web hosting.

As part of Hostway's plans to offer its enterprise customers a wider range of services, the company selected Foundry ServerIron 4G application delivery switches, with integrated DNS proxy and GSLB capabilities. Working with Foundry(tm), these switches were installed in a number of locations globally including the United States, United Kingdom and South Korea.

David Foxley, UK sales manager, Hostway, explains, ``We want to offer our enterprise clients a service, which would make a significant difference in how their own customers interact with them online. For our customers who use their Web sites as an essential tool for e-commerce, GSLB makes sure they don't suffer any downtime or loss of revenue by ensuring nonstop operation.''

GSLB provides load balancing and high availability for Web sites or server farms hosted in multiple data centers. Web sites using GSLB are routed to the data center providing and, in the unlikely event of a failure, users are directed to the best alternative location thereby providing uninterrupted service. As international organizations expand into emerging markets, such as China and India, it will become increasingly important for them to make sure their Web sites are available and fully operational to customers from every corner of the globe at all times and GLSB ensures just this.

Foxley explains, ``Customers trying to buy tickets to a rock concert running worldwide would access the organizer's Web site with local content provided to them based on their geographic location. Organizations can therefore adapt content to specific regions, changing language, advertising content, products and numbers so a customer, for example, based in the United Kingdom, would be directed to a site with local content relevant to them, whereas if they were in France or Germany, they'd be routed elsewhere.''

Hostway selected Foundry's ServerIron 4G switches for this project as a cost effective way to provide customers with high-availability, redundant, resilient data center class switches, capable of handling large amounts of data.

By offering this new integrated GSLB feature, Hostway can protect its customers from power-outages or site redundancy as well as natural disasters or any other unplanned downtime ensuring visitors to an organization's Web site are always redirected to a functioning alternative. Additional features, such as e-mail SPAM mitigation, were important for Hostway as the company wanted to extend its enterprise services to organizations growing their online businesses.

Foxley continues, ``The level of support we received when making previous purchases encouraged us to consider them again for our Web application switches. After rigorous testing, we determined that Foundry was the best option in terms of features, price, scalability, reliability and performance.''

Gary Hemminger, director of product management, application delivery, Foundry, comments, ``We're excited to be working with Hostway as they continue to extend services and offer their customers innovative managed hosting solutions. As the world of Web becomes ever increasingly 24x7x365, Hostway can provide support to ensure access to Web sites is possible at any time and from any location.''

About Hostway Worldwide

Founded in 1998, Hostway Corporation (http://www.hostway.co.uk) is one of the three largest web hosting companies in the world with a direct presence in 11 countries, 15 worldwide operation centers, and more than 700 employees. Serving customers both small and large, Hostway combines best of breed hosting infrastructure with innovative online tools that help customers broaden their reach and grow their businesses online. Hostway offers a wide range of managed hosting services ranging from Windows and Linux based shared hosting plans, to complete dedicated server and Enterprise managed solutions to now over 600,000 customers worldwide. Hostway franchises include - Affinity Internet, Bigstep, DiscountDomains, Hostway UK, Hostway Netherlands, Hostway Korea, Hostway Australia, Hostway Denmark, NetNation, PowerMedium, RegistryPro, Server Service, Service Over Internet, ValueWeb and WinSave. Find out more at http://www.hostway.co.uk/loadbalancing.

About Foundry Networks

Foundry Networks, Inc. (NasdaqGS:FDRY - News) is a leading provider of high-performance enterprise and service provider switching, routing, security and Web traffic management solutions, including Layer 2/3 LAN switches, Layer 3 Backbone switches, Layer 4-7 application switches, wireless LAN and access points, metro and core routers. Foundry's customers include the world's premier ISPs, metro service providers, and enterprises, including e-commerce sites, universities, entertainment, health and wellness, government, financial and manufacturing companies. For more information about the company and its products, call 1.888.TURBOLAN or visit http://www.foundrynet.com.

The Foundry Networks, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=2756


Contact:

Foundry Networks
Foundry Media Contact
Pavel Radda
408.207.1332
pradda@foundrynet.com

FD
Foundry Investor Contact
Brendan Lahiff
415.293.4425
brendan.lahiff@fd.com

Source: Foundry Networks, Inc.