Fully diluted, pro forma earnings per share increased to $.11 in the current quarter from $.05 in the second quarter of fiscal 2002.
We are extremely pleased with our results for the second quarter, particularly in view of the challenges presented by the prevailing economic conditions, said Henry Fiallo, CEO and Chairman of Enterasys Networks. We have continued to outperform the market led by our broad product offering exclusively targeting the enterprise market, our large customer base, solutions orientation, and our high touch sales model.
On a pro forma basis, Enterasys’ gross margins were stable at 50% and pretax income increased by $2.5 million to $33.5 million in the second quarter of fiscal 2002.
Enterasys Second Quarter Highlights:
Dell’Oro ranks Enterasys #1 for 10th consecutive quarter: The Dell’Oro Group ranked Enterasys 1 in the rapidly growing modular layer 3 market for the 10th consecutive quarter. With Dell’Oro predicting that the Layer 3 market will grow to $8.2 billion by 2004, Enterasys is the leader in a key market segment.
Enterasys grows security and mobility revenues by 19%. In the second quarter, Enterasys grew security and mobility revenues to over $31million, compared to revenues of $26 million in the prior quarter, representing a growth rate of approximately 19%.
Significant customer wins: Significant customers wins in the second quarter included: GE Aircraft Engines, Ernst & Young, Compaq, City of Mesa, Colgate University, Demoulas, First USA, NEC (Australia), Ningxia Power Utility (China), Pacific Union, Provicia di Roma, Seagate, Shanghai Songjian University City, Toshiba, and Vertis Advertising.
Enterasys achieves sequential sales out growth of 15% from distribution partners: Enterasys generated strong sales out from its distribution partners.
Deloitte Consulting joins Enterasys Partner Program. Enterasys added Deloitte Consulting as a global elite partner in its successful Partner Program. Deloitte Consulting, a global leader in providing services in all aspects of enterprise transformation, from strategy and processes to information technology, will jointly sell solutions to Global 50 accounts.
Enterasys strengthens its product position: During the second quarter, Enterasys shipped the R2, the industry’s first 54 MB capable wireless access platform; released the next generation of our award winning IDS product, Dragon 5.0, which most recently captured Network Computing Editor’s Choice Award; launched a new line of VPN Gateways, our ANG-1100 series; and, Layer-3 enabled our Vertical Horizon switching line.
SOURCE: COMPANY PRESS RELEASE
