Enterasys Networks announced its financial results once again met company expectations for the fiscal fourth quarter, ended 30 December 2006.
Enterasys achieved positive net income in Q4 and posted its third consecutive quarter of revenue growth. For the full year, revenue increased in 2006 compared to 2005.
Gross margins increased over the prior quarter, remaining strong at more than 50%.
Enterasys has now posted six consecutive quarters of pro-forma operating profitability. These results do not reflect any purchase accounting adjustments that may be applied, related to the company's acquisition in March 2006 by a group of private investors led by The Gores Group, and Tennenbaum Capital Partners.
"Enterasys had another strong quarter to wrap up 2006, continuing the momentum we established when the new management team joined the company," said Mike Fabiaschi, president and CEO, Enterasys Networks.
"These results clearly reflect the success of our efforts to forge and strengthen our relationships with customers and partners. The unique capabilities of our Secure Network hardware, software and services to secure any network, coupled with our customer-centric culture, are driving profitable revenue growth and an expanding roster of new customers worldwide."
Enterasys' African operations continued to grow in Q4 and the company is still perceived as the leader in secure network infrastructure.
"There has been an increased demand for full implementations of the Enterasys total Secure Networks solutions in both South Africa and across Africa," said Martin May, Enterasys regional director, Africa.
"The increase in polymorphic threats has meant businesses are looking for a multi-dimensional solution to secure their business continuity, which is exactly what Enterasys delivers," comments May.
Highlights for the fourth quarter of 2006 include:
* More than 150 new customers, bringing the total for the past three quarters to nearly 500.
* Total port shipments rose approximately 7% sequentially in Q4 2006, and 25% compared to Q4 2005.
*.Matrix X secure core router revenue grew more than 50%, and 10Gbps Ethernet port shipments nearly tripled over Q3 2006.
*.Layer 2 switching, led by the SecureStack A2, B2 and B3 edge switches, posted another sequential quarter of revenue growth and 50% growth over 2005. Port shipments rose more than 40% over Q4 2005.
*.Matrix N-Series modular Layer 3 switches revenue and port shipments increased over Q3 2006 and over the full year 2005.
*.The SecureStack C2 and C3 fixed Layer 3 switches posted sequential revenue growth, and more than 50% growth in port shipments over Q3 2006.
** Licence shipments of Enterasys Dragon, NetSight and Sentinel software solutions for security, visibility and control grew sequentially over Q3 2006 as well as over FY2005.
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Enterasys is an investor group led by The Gores Group and Tennenbaum Capital Partners. Enterasys' unique Secure Networks solutions secure any network from any vendor and ensure the integrity and performance of IT services, and the business users that rely on them.
Operational in South Africa for well over a decade, the local company is supported by a growing channel. Consistently delivering superior bespoke solutions, Enterasys has established an impressive client base in both the public and private sectors.
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