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Bay Networks Shares Fall on Slower Sales

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January 22, 1998|Bloomberg News

Bay Networks Inc. shares fell about 10.5% after the Santa Clara-based company reported slower-than-expected sales growth for several products. Shares of Bay, the No. 3 maker of computer-networking equipment, fell $2.56 to close at $27 in New York Stock Exchange trading. Though the company reported record second-quarter revenue and earnings Monday, in line with expectations, sales of its switching products rose only 14% in the quarter, down from more than 30% growth in the last six months, analysts said. Sales of the company's Baystack 350T switches, which link computers into networks at large businesses, are beginning to come under pressure as Cisco Systems Inc. and 3Com Corp., the No. 1 and 2 makers of networking equipment, introduce competing products, said Scott Heritage, an analyst with UBS Securities, who maintains a "hold" rating on Bay's stock.

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