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Technology Stocks : Cabletron Systems (CS: NYSE) -- Ignore unavailable to you. Want to Upgrade?

To: Fred Mussler who wrote (6918)	9/20/1999 7:09:00 PM
From: Howard Shlom	Respond to of 8358

Cabletron gets Compaq investment By Deborah Adamson, CBS MarketWatch Last Update: 7:00 PM ET Sep 20, 1999 Earnings Surprises ROCHESTER, N.H. (CBS.MW) -- Cabletron Systems said Monday that Compaq is buying an equity stake in its management software business and agreed to buy its products for several years. The Rochester, N.H. company (CS: news, msgs) said the deal replaces any existing agreements between the two companies. Cabletron also reported earnings for the second quarter of $12.5 million, or 7 cents a share, from $10.5 million, or 6 cents, a year earlier. The company was expected to earn 6 cents, according to analysts surveyed by First Call. Sales dropped to $357 million from $370 million. Net income, which included a $7.5 million charge for writing down goodwill related to an acquisition and a $10 million gain from an equity investment, rose to $13 million, or 7 cents, from $6.4 million, or 4 cents, a year earlier. "This is a fundamentally different company today than it was 6 months ago," said Piyush Patel, Cabletron chairman and CEO, in a statement. "We have a clear strategy and direction, we are focused on execution and we now have clear visibility into our business fundamentals." Cabletron credited strong sales of its SmartSwitch routers, which grew 200 percent year over year, for the improved performance. The company also said it specifically targeted cable companies, local exchange carriers and Internet service providers to expand its business. Cabletron shares closed down 5/8 at 19 1/8 prior to the news. ////////////////\\\\\\\\\http://cbs.marketwatch.com/archive/19990920/news/current/cs.htx?source=blq/yhoo&dist=yhoo