Accelerating Profitably Towards The New
Joint Venture
Q2 2008 marks a key turning point for Enterasys with the announcement of our joint venture with Siemens. But let’s not lose sight of what enabled us to reach this major milestone – a history of consistent success achieved by our continued focus on customer satisfaction, profitable revenue growth, new product delivery, and new customer acquisition.
With that said, it may come as no surprise that in Q2 2008, Enterasys achieved yet another quarter of profitable revenue growth. I am very pleased to announce that revenues grew more than 12 percent sequentially and more than 10 percent over the same period in 2007. Gross margins remained strong at greater than 50% with EBITDA more than doubling over the year ago period. And we did all this while adding over 150 new customers!
Our outlook for the second half of the year remains optimistic as we continue our strong execution by leveraging the significant operating improvements and controls we have implemented over the past two years.
I would like to share some second quarter 2008 highlights with you:
New customers in APAC included:
- Energy – Glencore Singapore
- Government – Guangdong Museum
- Retail – Quiksilver
- Transportation – KumHo-Asiana Ltd.
New customers in the CALA region included:
- Finance - MAFRE
- Government – Ministério da Defesa
- Government – Prodaub - Processamento de Dados de Uberlândia
- Transportation – Aeropuerto Internacional La Aurora
- Transportation – TRENSURB
New customers in the EMEA region included:
- Entertainment – TV CABO
- Finance – Rahn & Bodmer
- Government – Landeskriminalamt Sachsen-Anhalt
- Retail – WALA Heilmittel GmbH
- Transportation – Grupo Talgo
New customers in North America included:
- Education – Moore County Schools
- Education – Tennessee Technological University
- Technology – Intuit
- Transportation – Allegiant Air
Product highlights include:
- Triple-speed power over Ethernet (PoE) shipments increased more than 75 percent in the first half of 2008 compared to the year ago period as Enterasys continues to be deployed in conjunction with VoIP and IP Video solutions from 3Com, Aastra, Alcatel, Avaya, Cisco, LifeSize, Mitel, NEC (Sphere), Nortel, Panasonic, Pelco, Polycom, ShoreTel, Siemens, Tandberg, and many others.
- Fixed Layer 3 switching revenues for the Enterasys® SecureStack™ C3 Gigabit Ethernet stackable switch increased nearly 90 percent, while PoE port shipments more than doubled from 1H07.
- The new Enterasys® G-Series policy-based edge switch continued to gain traction, with revenues and port shipments growing more than 300 percent sequentially in Q2 2008.
- The Enterasys Matrix® X-Series secure data center/core routers also had strong growth in Q2 2008, with revenues up more than 40 percent sequentially and 60 percent compared to the year ago quarter, while port shipments grew 44 percent sequentially and 26 percent on a year-over-year basis.
- 10 Gigabit Ethernet port shipments for the Matrix X-Series and Matrix N-Series more than doubled in 1H 2008, compared to 1H 2007.
- RoamAbout® wireless revenue increased nearly 50 percent in Q2 2008 compared to the year ago quarter.
I am proud of our many accomplishments this past quarter, and many thanks for your continued loyalty and support. Our ability to grow and increase awareness the remainder of this year and next will only be strengthened by joining forces with Siemens. As always, you can stay informed about the joint venture by visiting our website – always populated with the latest news and happenings to keep you up to speed during this exciting time.
Sincerely,
Mike Fabiaschi
President & CEO
Enterasys Secure Networks
