Foundry Reports on Q3

SAN JOSE, Calif. -- Foundry Networks(TM), Inc. (Nasdaq: FDRY - news), today reported financial results for its third quarter ended September 30, 2001. Net revenue for the third quarter was $74.7 million, which compares to $113.2 million reported for the same period last year. Pro forma net income for the third quarter of 2001, excluding non-cash charges for amortization of deferred stock compensation, was $2.5 million or $0.02 per diluted share, compared to pro forma net income of $28.6 million or $0.23 per diluted share in the third quarter of 2000. This marks the eleventh consecutive quarter of profitability for the Company. The Company also continued to maintain a solid financial position, improving its cash position by $24 million during the third quarter of 2001 while remaining debt-free. Net revenue for the first nine months of 2001 was $245.8 million, which compares to $272.0 million reported for the first nine months of 2000. Pro forma net income for the first nine months of 2001 was $16.1 million or $0.13 per diluted share, compared to pro forma net income of $72.7 million or $0.57 per share for the same period in 2000. "The Company-wide attention to our core fundamentals has enabled Foundry to endure the current economic environment," said Bobby Johnson, CEO and President of Foundry Networks. "Despite these challenging economic times, we are pleased to post our 11th consecutive quarter of profitability on both a GAAP (Generally Accepted Accounting Principles) and pro forma basis and now have accumulated over $104 million in retained earnings as a company. In addition, we continue to generate positive cash flows with approximately $284 million in cash and liquid investments." Foundry Networks Inc.