Enterasys Networks
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| Enterasys Networks | |
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| Type | Privately-held company |
|---|---|
| Founded | 2000 |
| Headquarters | Andover, Massachusetts |
| Key people | CEO: Michael Fabiaschi |
| Industry | Telecommunications hardware |
| Products | Switches, Routers |
| Revenue |  $331.09 Million USD (2004) |
| Employees | 1,150 |
| Website | www.enterasys.com |
Formed in March 2000 as a spin-off of Cabletron Systems, Enterasys Networks is a networking company catering almost exclusively to large enterprises. The company designs and manufactures all types of networking equipment including routers, switches, and 802.11 wireless access points and controllers.
In addition to hardware, the company also builds software for managing and securing enterprise-class networks.
The company's headquarters are in Andover, Massachusetts.
[edit] Fraud trial
In 2006, five former company officials were tried on accusations of breaking accounting rules in order to inflate revenue in the quarter when Enterasys was spun off from the Cabletron.
On Tuesday, December 19, 2006, a federal jury convicted four former Enterasys executives on securities fraud and conspiracy charges, but did not reach a verdict on five charges against the company's former chief operating officer.
The four convicted former executives included former chief financial officer Robert Gagalis, 49, of Rye; former vice president Bruce Kay, 53, of Yarmouth, Maine; former accountant Robert Barber, 53, of Durham; and David Boey, 51, of Atlanta, who worked in the company's Singapore office.
The four were convicted on 27 of 39 conspiracy, securities and wire fraud charges against them. The charges related to sales contracts, investments and revenue the computer networking company reported during and immediately after the company's spinoff from Cabletron Systems Inc.
Former chief operating officer Jerry Shanahan, the only defendant who was not a certified public accountant, was acquitted on one count of securities fraud. However, the jury returned no verdict on a wire fraud charge, three other securities fraud charges and a conspiracy charge.
The securities fraud charges are each punishable by up to 10 years in prison, while conspiracy can draw up to five years in prison and a $250,000 fine.
