Bays lastest press release
14:40 =Bay Networks Says Sales Momentum Is 'Very Strong' >BAY
SANTA CLARA, Calif. --Bay Networks Inc. (BAY) Chief Executive
Andy Ludwick said ''sales momentum is very strong'' at the computer networking company.
He acknowledged that securities analysts have become nervous about Bay's fiscal third quarter, ending March 31, a problem that has pushed the stock of the fast-growing company down to 34 7/8 on the New York Stock Exchange, more than 30% below its 52-week high.
But, while agreeing with analysts' statements that the quarter got off to a slow start, Ludwick told Dow Jones that ''the sales numbers are there. Sales momentum is actually getting stronger.''
He declined to comment more specifically on analysts' forecasts that fiscal third-quarter sales will grow 8% to 10% from second-quarter sales of $541.1million.
In the third quarter of fiscal 1995, Bay earned $46 million, or 24 cents ashare, on revenue of $353 million.
Ludwick also said the company's acquisitions have worked out very well. William J. Ruehle, chief financial officer, pointed to Centillion Networks Inc., a money-losing startup acquired last May for the seemingly hefty price of $140 million in Bay stock. Ruehle said that, in three quarters under Bay's ownership, Centillion has gone from minimal sales to $13 million in he latest quarter and ontributed one cent a share to Bay's earnings in the fiscal second quarter.
Ludwick said he thinks the networking industry's impressive growth rates of 30% to 50% a year can continue for at least the next two to three years based on demand trends he can see clearly now. ''In two to three years, ask again,''he said. |
