NETWORKS

Zacks.com releases details on a group of stocks that are part of their exclusive list of Stocks to Sell Now. Foundry Networks Inc. (NASDAQ:FDRY) designs, develops, manufactures and markets a comprehensive suite of high performance networking products for enterprises and Internet service providers. For its second quarter, Foundry Networks reported net income of 11 cents per diluted share last week on revenues of $97.8 million. The earnings results compared to 13 cents in the year-ago quarter and missed the consensus by more than -21%. Revenues improved from $95.7 million in last year's second quarter but was still below what analysts were expecting. The company said orders during the quarter would have been enough to reach its revenue targets, but an unexpectedly large volume of orders arrived late and Foundry Networks was not able to build and ship all of the orders prior to quarter-end. In addition, the company forecasted third quarter diluted earnings per share between 9 cents and 13 cents, which was below the consensus. Earnings estimates for this year, ending December 2004, moved lower 12 cents, or about -18%, in the past three months, including a slide of 2 cents, or about -3%, in the past seven trading days. The company should be able to fulfill its potential in the future, but in the shorter-term investors may want to stay patient and watch for its earnings estimates to improve before adding or deepening a position.