INTERCONNECTS

Foundry Networks Inc. said it should post better-than-expected earnings and revenue for the fourth quarter, thanks to improved sales of its router products. In morning trading, Foundry shares climbed $1.38, or 17%, to $9.53. The San Jose, Calif., maker of networking gear said its 4Q profit should increase from the third quarter, when it earned six cents a share. The forecast suggests the company will beat consensus estimates of analysts surveyed by Thomson First Call, which had pegged fourth-quarter earnings at six cents a share. Additionally, Foundry said it anticipates revenue in the range of $84 million to $87 million. Analysts were expecting sales of $79.6 million. In the year-earlier fourth quarter, Foundry earned one cent a share, excluding items, on revenue of $65.4 million. "Our JetCore and 10 Gigabit Ethernet products, as well as improved results from our international efforts, helped drive incremental growth," President and Chief Executive Bobby Johnson said in a press release late Wednesday. "Moreover, business was strong across our core vertical markets during the December quarter." The company also said that its book-to-bill ratio was greater than one during the quarter, suggesting industry growth. Networking-gear makers have had to cope with slack spending from telecommunications companies, as steep competition and the sluggish economy force telecom firms to tighten budgets and hold off on orders.