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Foundry Flops After Shortfall

The networker drops 10% following an earnings miss.

Foundry'sundefined first-quarter numbers came up a little lighter than expected.

The San Jose, Calif., networking-equipment maker said adjusted net income was $17.4 million, or 12 cents a share, on sales of $114 million. Those figures compare with a pro forma profit of 7 cents the share on $84.6 million in revenue in the year-ago quarter.

Analysts were counting on an adjusted profit of 13 cents a share on sales of $113 million, according to Reuters Research.

The company said it saw a slowdown in federal government spending, which represented about 19% of sales in the quarter.

"We are excited about our strong start in 2006," CEO Bobby Johnson said in a press release Thursday.

Looking ahead, the company did not give a specific forecast in its press statement, but it was upbeat about its prospects for the year.

"Foundry will be well positioned for continued growth in 2006," Johnson said in the press release.

Foundry shares ended regular trading down 21 cents to $17.06, and fell an additional $1.71, or 10%, to $15.35 in post-close action.