Enterasys Networks, the Secure Networks Company, has announced that financial results once again met expectations for the fiscal first quarter ended 31 March 2007.
First-quarter revenue increased on a year-over-year basis, while gross margins remained strong at greater than 50%.
Enterasys has now posted seven 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.
"Our goal for the first quarter was to continue building the company's momentum from 2006, and that's exactly what we did," said Mike Fabiaschi, president and CEO of Enterasys Networks.
These results demonstrate that existing and new customers and partners around the world are benefiting from the unique value delivered by our secure networks hardware, software and services. Every day we work to become our customers' and partners' favourite vendor. That effort is making Enterasys an ever-stronger competitor in the enterprise network infrastructure industry.
Highlights for the first quarter of 2007 include:
Delivering four new Diamond Distributed Forwarding Engines (DFEs), the latest innovation for the industry-leading Enterasys Matrix N-Series flow-based switches. The new DFEs deliver increased security, routing and policy scalability for backbone roles in the core and distribution layers of enterprise networks.
Introducing the Enterasys SecureSwitch I-Series industrial switch, the first Ethernet switch with Enterasys industry-leading policy architecture, in a hardened design that can withstand the extreme environmental conditions of the typical manufacturing plant or energy industry facility.
The addition of more than 150 new customers, bringing the total for the past four quarters to more than 650.
New customers in the EMEA region included:
Financial Services - N"urnberger Versicherung in Germany Healthcare, Santry Sports Clinic in Ireland Government, INAIL in Italy Defence, ESAT in France Technology and Softline in South Africa
Total port shipments rose approximately 9% in Q1 compared to the year-ago quarter.
LAN switching revenue rose 14% from Q1 of last year.
Matrix X secure core router revenue grew more than 90% and 10Gbps Ethernet port shipments increased more than six-fold over Q1 2006. Shipments of 10Gbps Ethernet ports for the Matrix N-Series modular Layer 3 switches grew six-fold and 10/100/1000Mbps Power-over-Ethernet ports rose 90% year over year.
Fixed Layer 2 switching revenue, led by the SecureStack A2, B2 and B3 edge switches, increased more than 25% while port shipments rose 18% over the year-ago quarter.
Fixed Layer 3 switch revenue SecureStack C2 and C3 rose 16% and port shipments increased nearly 10% over Q1 of last year.
Licence shipments of Enterasys NetSight and Enterasys Network Access Control software solutions for security, visibility and control posted strong double-digit increases year over year.
* RoamAbout wireless product revenue increased nearly 20% over the prior year.
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Enterasys Networks 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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