Enterasys Networks, Inc. designs, develops, markets and supports network solutions designed to address the network communication, management and security requirements of global enterprises. The Company's solutions offer customers the network functionality required to facilitate the exchange of information among employees, customers, vendors, partners and other network users. Its Secure Networks solutions include products that are classified into multilayer switching, routing, security and network management software, and wireless networking. Its customers can use the Company's products in multi-vendor networks and can select from product feature sets and functionality, adding features and functionality in stages at their option. Enterasys Networks, Inc.'s installed base of customers consists of commercial enterprises; governmental entities; healthcare, financial, educational and non-profit institutions, and various other organizations. Secure Multilayer Switching Designed to secure and fit into any environment and grow with a customer's requirements, the Company's modular and stackable Layer 3 switches, known as the Matrix C-Series and N-Series, and its stackable Layer 2 Matrix V-Series switch address the market for secure, high-speed connectivity to individual users and departments within the enterprise network. During the fiscal year ended January 01, 2005 (fiscal 2004), Enterasys Networks, Inc. introduced versions of products in all three switching product lines. The Matrix C2 is a line of 10/100 and 10/100/1000 Gigabit stackable switches that included 10/100/1000 Power-over-Ethernet (PoE) stackable switch. It expanded its Matrix N-Series switching product family to include the Matrix N5 chassis with integrated PoE support and the NSA standalone Matrix N switch, which delivers advanced security functions in a small form factor. Its Matrix switches use both application-specific integrated circuits, which process data and information faster than software-based switches, while offering the desired security, network traffic control, performance, auditing and management services that enterprises require for day-to-day operation. The Company's Matrix switches are an integral part of its Secure Networks solutions, which enable these switches to differentiate among network users and applications. Secure Routing Routers connect computer networks and transmit information from one network to another. Designed for core routing in the enterprise network, the Company's X-Pedition and Matrix X routers combine advanced features and functionality with performance and security, while offering control over applications. Its routers also incorporate hardware-based, application-specific integrated circuit (ASIC) designs that enable them to process information faster than software-based routers. The Matrix X, a 10-Gigabit Ethernet Secure Core Router that supports Internet Protocol (IP) version 6 (IPv6) was introduced in fiscal 2004, and started shipping in January 2005. With the Matrix X, it is extending integrated security functionality from the network edge and distribution layer to the network core. The Matrix X supports critical converged applications and has the built-in security required to mitigate threats to a network's nerve center without compromising end user productivity, online customer services and other important business activities. Security and Network Management Software The Company's products incorporate security features, using methods, such as authentication procedures, encryption and network monitoring to prevent unauthorized access to the network. Its Dragon intrusion detection system detects security attacks using algorithms and library of over 2,000 patterns. Enterasys Networks Inc.'s Dragon technology also offers an integrated management system for monitoring selected devices throughout the network, enabling an enterprise to respond to security threats. In fiscal 2004, it extended Dragon to serve as a critical component of its Dynamic Intrusion Response solution. As part of its Dynamic Intrusion Re