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

To: Doug who wrote (3131)	3/3/1998 11:39:00 AM
From: Michael Hart	Read Replies (1) \| Respond to of 8358

[ Outsourcing ] In the late 80's and early 90's of Cabletron the fact that they had there own manufacturing was a MAJOR positive. To say that because everyone outsources than Cableton should to is to simplistic. Owning your own production during a fast growing technology market allows management to be extremely flexible in providing the best in delivery scheduling, customer service, new product introduction, ECO control, buying power. Cabletron was able to win many, many customer orders just based on these factors alone while also creating the impression they were delivering new technology faster than competitors and creating a tremendous reputation for customer service all because they controlled the product flow 100%. Having said that however, when a market matures and technology is not moving as fast things like margins and high volume production begin to outway the advantages of a nimble in house process. My opinion is that the previous Cabletron management stayed to long with "what they new" and did not begin transfering to a more outsourced process until sometime last year when they hired new management in this area. They still have a way to go but it looks like they are on the right track for the new larger Cabletron. Bottom line: They have new management and are addressing this and many other areas from the past that can be attributed to trying to run a large corporation like a smaller fast growing organization. All good news for those who are either entering at this point or are long term holders. Mike