Foundry Networks(TM), Inc. (NASDAQ:FDRY) , a performance and total solutions leader for end-to-end switching and routing, today announced financial results for its third quarter ended September 30, 2008.

Foundry's revenue for the third quarter of 2008 was $165.9 million, compared to $159.5 million in the third quarter of 2007, and compared to $160.7 million in the second quarter of 2008. Net income was $17.8 million or $0.12 per diluted share, compared to net income of $27.6 million, or $0.18 per diluted share in the third quarter of 2007, and net income of $18.3 million, or $0.12 per diluted share in the second quarter of 2008.

Revenue for the first nine months of 2008 was $476.6 million, compared to $438.6 million for the first nine months of 2007. Net income for the first nine months of 2008 was $50.1 million, or $0.33 per diluted share, compared to net income of $52.3 million, or $0.34 per diluted share, for the same period in 2007.

Included in Foundry's results for the third quarter of 2008 were $13.4 million of non-cash stock-based compensation expense and $2.8 million of expense for costs arising out of the pending acquisition by Brocade Communications Systems, Inc. and related litigation. Excluding these expenses and the related tax effect, non-GAAP net income in the third quarter of 2008 was $28.4 million and non-GAAP net income per diluted share was $0.19 per share. Please refer to the table below for a reconciliation of GAAP to non- GAAP net income.

In the third quarter of 2008, North American non-Federal commercial revenue represented 47.6% of total revenue, representing a decrease of approximately 15.6% from the prior quarter. This was offset by sales to the U.S. Federal Government, which represented 28.3% of total revenue and was up 68.7% sequentially, a record high for Foundry. Sales to Europe, the Middle East and Africa (EMEA) represented 14.7% of total revenue, representing an increase of 2.3% from the prior quarter. Sales to Japan represented 4.1% of total revenue while the rest of Asia represented 5.4%. The Company ended the quarter with $1,006.7 million in cash and securities and the book-to-bill ratio was equal to one.