Cabletron swims against enterprise current

Cabletron swims against enterprise current

In the face of poor quarter results from the likes of Cisco and Nortel, Cabletron Systems has reason to smile - posting combined revenues across the company's four subsidiaries of US$291 million and beating analysts predictions by a whisker.

The revenues for Cabletron's subsidiaries were up $26 million on the previous quarter - a growth rate of 10 per cent. Net income was $10.7 million or $0.06 per diluted common share. Wall Street analysts had predicted $0.05 per share for the quarter.

In contrast, Cisco warned its revenues would be $4.7 billion - 30 per cent below the previous quarter's sales and $200 million less than sales for the same quarter last year. The result will be the first year-to-year drop in quarterly revenues in Cisco's 11-year history as a publicly traded company. Earnings per share will be in the low single digits, less than the consensus forecast of $0.08 per share.

Nortel recorded a loss of 12 cents per share, a cent more than the 11 cents per share loss analysts expected. The company posted revenue of US$6.18 billion for the quarter, a little better than consensus analyst estimates of $6.1 billion. The results were due to reduced capital spending by service providers and enterprises in the face of a US economy slowdown, according to the company.

Cabletron's software subsidiary Aprisma recorded revenues of $21.9 million for the quarter, up from 19.7 million in the previous quarter. Enterprise network solutions provider Enterasys had revenues of$221 million and a sequential quarterly growth of around 7.4 per cent.

Follow Us

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments