Solid Financial Results
I am pleased to announce that Enterasys has achieved profitable revenue growth for the fiscal third quarter, which ended 27 September 2008. Revenues grew more than five percent sequentially and gross margins increased consecutively, remaining strong at greater than 50%. EBITDA more than doubled over the prior quarter.
We were able to achieve these solid results while continuing to focus on customer satisfaction, drive profitable revenue growth, deliver new products, and win new customers. In fact, we added more than 150 new customers last quarter, bringing the total for the past ten quarters to more than 1,650!
The fact that these profitable results coincide with last quarter’s announcement that Siemens AG partnered with The Gores Group, LLC in a joint venture, is a positive indicator of the success that is eminent as we grow Enterasys, Siemens Enterprise Communications, and SER.
I would like to share some third quarter 2008 highlights with you:
New customers in APAC included:
- Government – Jeonnam Provincial Police Agency
- Government – National Native Title Tribunal
- Manufacturing - Flexsys Chemicals
- Telecommunications - NOKIA
New customers in the CALA region included:
- Energy - Usina Moema
- Government – Tribunal de Conta do MT
- Healthcare – Paraná Clínicas
- Manufacturing - Empresa Siderurgica del Peru S.A.
- Transportation - Azul Linhas Aéreas
New customers in the EMEA region included:
- Government – Conseil General - Vosges
- Healthcare – Ospedale Del Mare
- Manufacturing – Grupo Leche Pascual
- Manufacturing - Dyckerhoff
- Transportation – John Paul II International Airport Krakow - Balice Ltd.
New customers in North America included:
- Education – Great Rivers Educational Cooperative
- Education - Scott County Schools
- Finance – Bank of Old Monroe
- Finance - Tomato Bank, Ltd.
- Manufacturing – AVA Solar
Product highlights include:
- In its second quarter of general availability, the Enterasys D2 secure gigabit Ethernet workgroup switch continued to gain traction, with revenues climbing 37% sequentially in Q3 2008.
- The new Enterasys G-Series policy-based edge switch continued to gain traction, with revenues growing more than 25 percent sequentially in Q3 2008.
- 10 Gigabit Ethernet revenue and port shipments for the Matrix X-Series and Matrix N-Series grew nearly 55% compared to the year ago quarter.
- Enterasys delivered the new 10 GbE Enterasys SecureStack C3 with IPv6 support and a limited lifetime warranty.
As always, thank you for your continued loyalty and support, we could not have achieved this success without you. As we merge these three companies together, our success will be measured by your satisfaction as we deliver unified communications solutions that are mobile and secure.
Sincerely,
Mark Stone
Chairman of the Board and Interim CEO
Enterasys Secure Networks