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Cabletron Systems Beats Estimates

March 29, 2001|Reuters

Cabletron Systems Inc. reported pro forma profit of $10.7 million, or 6 cents a share, for its fiscal fourth quarter, a penny better than analyst expectations, despite an industry-wide slowdown in telecommunications spending.

The results reversed a year-ago loss of $21.5 million, or 12 cents, at the holding company for four computer equipment makers. Revenue from continuing operations rose 43% to $291 million. Cabletron also raised its revenue outlook slightly for the fiscal first quarter to $305 to million $310 million. Wall Street was expecting revenue of $300 million to $305 million.

Citing strong fundamentals at its Aprisma Management Technologies and Enterasys Networks, Cabletron said it plans to make them independent public companies without an initial public offering.

Meanwhile, the IRS ruled that Cabletron's spin off of Riverstone Networks will be tax-free.

Shares of Cabletron fell $1.34 to close at $10.99 on the NYSE, before the results were released.

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