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.