x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

•	Net revenues of $141.8 million compared to net revenues of $68.2 million in the third quarter of fiscal 2013.

•	Product revenues of $109.9 million compared to product revenues of $54.1 million in the third quarter of fiscal 2013.

•	Service revenues of $31.9 million compared to service revenues of $14.1 million in the third quarter of fiscal 2013.

•	Total gross margin of 50% of net revenues compared to total gross margin of 56% of net revenues in the third quarter of fiscal 2013.

•	Operating loss of $23.4 million compared to operating loss of $1.9 million in the third quarter of fiscal 2013.

•	Net loss of $25.1 million compared to net loss of $2.2 million in the third quarter of fiscal 2013.

•	Cash flow used in operating activities of $30.6 million in the nine months ended March 31, 2014 compared to cash flow provided by operating activities of $7.0 million in the nine months ended March 31, 2013.

•	Cash and cash equivalents, short-term investments and marketable securities decreased by $99.6 million to $106.1 million as of March 31, 2014 from $205.6 million as of June 30, 2013, primarily due to cash used to fund a portion of the acquisition of Enterasys offset by $24 million additional borrowings from the Revolving Facility.

---

---

---

---

---

•	Revenue Recognition

•	Inventory Valuation

•	Long Lived Assets

•	Allowance for Doubtful Accounts

•	Deferred Tax Valuation Allowance

•	Accounting for Uncertainty in Income Taxes

•	Share-Based Compensation

•	Legal Contingencies

•	Restructuring Costs

---

---

---

---

---

Item 4.	Controls and Procedures

---

---

Item 1.	Legal Proceedings

Item 1A.	Risk Factors

•	we are dependent upon obtaining orders during a quarter and shipping those orders in the same quarter to achieve our revenue objectives;

•	decreases in the prices of the products that we sell;

•	the mix of products sold and the mix of distribution channels through which products are sold;

•	acceptance provisions in customer contracts;

•	our ability to deliver installation or inspection services by the end of the quarter;

•	changes in general and/or specific economic conditions in the networking industry;

•	seasonal fluctuations in demand for our products and services;

•	a disproportionate percentage of our sales occurring in the last month of the quarter;

•	our ability to ship products by the end of a quarter;

•	reduced visibility into the implementation cycles for our products and our customers’ spending plans;

•	our ability to forecast demand for our products, which in the case of lower-than-expected sales, may result in excess or obsolete inventory in addition to non-cancelable purchase commitments for component parts;

•	sales to the telecommunications service provider market, which represent a significant source of large product orders, are especially volatile and difficult to forecast;

•	product returns or the cancellation or rescheduling of orders;

•	announcements and new product introductions by our competitors;

•	our ability to develop and support relationships with enterprise customers, service providers and other potential large customers;

•	our ability to achieve targeted cost reductions;

•	fluctuations in warranty or other service expenses actually incurred;

•	our ability to obtain sufficient supplies of sole- or limited-source components for our products on a timely basis;

•	increases in the price of the components that we purchase.

---

•	issue equity securities which would dilute current stockholders' percentage ownership;

•	incur substantial debt;

•	assume contingent liabilities; or

•	expend significant cash.

•	difficulties in the assimilation of acquired operations, technologies and/or products;

•	unanticipated costs associated with the acquisition or investment transaction;

•	the diversion of management's attention from other business concerns;

•	adverse effects on existing business relationships with suppliers and customers;

•	risks associated with entering markets in which we have no or limited prior experience;

•	the potential loss of key employees of acquired organizations; and

•	substantial charges for the amortization of certain purchased intangible assets, deferred stock compensation or similar items.

---

•	incur additional indebtedness;

•	create liens;

•	make investments;

•	enter into transactions with affiliates;

•	sell assets;

•	guarantee indebtedness;

•	declare or pay dividends or other distributions to stockholders;

•	repurchase equity interests;

•	change the nature of our business;

•	enter into swap agreements;

•	issue or sell capital stock of certain of our subsidiaries; and

•	consolidate, merge, or transfer all or substantially all of our assets and the assets of our subsidiaries on a consolidated basis.

•	ASICs;

•	Merchant silicon;

•	microprocessors;

•	programmable integrated circuits;

•	selected other integrated circuits;

•	custom power supplies; and

•	custom-tooled sheet metal.

•	flash memory;

•	DRAMs and SRAMs;

•	printed circuit boards; and

•	CAMs

•	Connectors

•	Timing circuits (crystals & clocks).

---

---

•	customers may delay or cancel plans to purchase our products and services;

•	customers may not be able to pay, or may delay payment of, the amounts that they owe us which may adversely affect our cash flow, the timing of our revenue recognition and the amount of revenue;

•	increased pricing pressure may result from our competitors aggressively discounting their products;

•	accurate budgeting and planning will be difficult due to low visibility into future sales;

•	forecasting customer demand will be more difficult, increasing the risk of either excess and obsolete inventory if our forecast is too high or insufficient inventory to meet customer demand if our forecast is too low; and

•	our component suppliers and contract manufacturers have been negatively affected by the economy which may result in product delays and changes in pricing and service levels.

---

•	stop selling our products that incorporate the challenged intellectual property;

•	obtain a royalty bearing license to sell or use the relevant technology, and that license may not be available on reasonable terms or available at all;

•	pay damages; or

•	redesign those products that use the disputed technology.

•	open source license terms may be ambiguous and may result in unanticipated obligations regarding our products and intellectual property;

•	open source software cannot be protected under trade secret law;

•	suppliers of open-source software do not provide the warranty, support and liability protections typically provided by vendors who offer proprietary software; and

•	it may be difficult for us to accurately determine the developers of the open source code and whether the acquired software infringes third-party intellectual property rights.

---

•	longer accounts receivable collection cycles;

•	difficulties in managing operations across disparate geographic areas;

•	difficulties associated with enforcing agreements through foreign legal systems;

•	higher credit risks requiring cash in advance or letters of credit;

---

•	difficulties in safeguarding intellectual property;

•	political and economic turbulence;

•	terrorism, war or other armed conflict;

•	natural disasters and epidemics;

•	potential adverse tax consequences;

•	compliance with regulatory requirements of foreign countries, including compliance with rapidly evolving environmental regulations;

•	compliance with U.S. laws and regulations pertaining to the sale and distribution of products to customers in foreign countries, including export controls and the Foreign Corrupt Practices Act; and

•	the payment of operating expenses in local currencies, which exposes us to risks of currency fluctuations.

•	budgetary constraints and internal acceptance reviews by customers will result in the loss of potential sales;

•	there may be substantial variation in the length of the sales cycle from customer to customer, making decisions on the expenditure of resources difficult to assess;

•	we may incur substantial sales and marketing expenses and expend significant management time in an attempt to initiate or increase the sale of products to customers, but not succeed;

•	if a sales forecast from a specific customer for a particular quarter is not achieved in that quarter, we may be unable to compensate for the shortfall, which could harm our operating results; and

•	downward pricing pressures could occur during the lengthy sales cycle for our products.

---

•	the timely adoption and market acceptance of industry standards, and timely resolution of conflicting U.S. and international industry standards; and

•	our ability to influence the development of emerging industry standards and to introduce new and enhanced products that are compatible with such standards.

---

---

---

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds

Item 3.	Defaults Upon Senior Securities - Not applicable

Item 4.	Mine Safety Disclosure - Not Applicable

Item 5.	Other Information

---

Item 6.	Exhibits

(a)	Exhibits:

---