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FDRY - (Sold on 7/16/07 for a gain of 65%)
BOUGHT
at $10.55 SOLD
at $17.39
On January 27th Foundry Networks Incorporated, a provider of
networking solutions including routers and switches, reported 4th
quarter revenue of $104.8 million which compares to revenue of
$111.1 million in the 4th quarter of the prior year. Net income was
$16.7 million
or 12 cents per share. For the year revenue was $409 million with net
income of $48 million or 34 cents per share. The company reported
record revenue in 2004.
During the 1st nine months of the year 29%
of total revenue was generated from government agencies while no single
customer accounted for more than 10% of revenue. Also during the 1st
nine months of the year 33% of revenue was generated from outside the
Americas while gross margins were 65% as compared to 63% for prior year
time period.
For the 1st quarter Foundry expects
revenue to be between $100 million and $110 million with earnings per
share of 8-12 cents. Current consensus estimates call for full year
earnings
of 47 cents per share on revenue of $442 million.
Foundry has cash and investments worth $617
million or $4.52 per share. Book value is $5.17 per share and the
company carries no debt. The stock has a price-to-sales ratio of 3.5
and a price-to-book ratio of 2. The company's book value has
increased by approximately 60% over last 2 years.
Looking at the 2 year chart below FDRY is
potentially forming an inverted head and shoulders bottoming pattern. (recommended on 2/16/05)
7/16/07-
SOLD AT $17.39 FOR A GAIN OF 65%. DURING THE SAME TIME PERIOD THE
NASDAQ
WAS UP 29%.
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