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Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?

To: Jeffery E. Forrest who wrote (13872)	3/17/1998 7:27:00 PM
From: Moonray	Read Replies (2) \| Respond to of 22053

Bay Networks sees 3rd-qtr sales below 2nd-qtr level 05:26 p.m Mar 17, 1998 Eastern SANTA CLARA, Calif., (Reuters) - Bay Networks Inc. said on Tuesday it expects its fiscal third-quarter revenue to be about 10 percent below the second quarter's $645 million because of weak product demand. Bay Networks, a computer networking gear maker, also said it expects net operating income to be less than the second quarter's, but still expects to report a profit for the third quarter. As a result, gross margins will be below the 51.5 percent reported in the second quarter, the company said, in an announcement after the close of the New York Stock Exchange's regular trading session Tuesday. In addition, the Santa Clara, Calif., company said it expects to take a charge of about $154 million, or $0.67 a share, for the recent acquisitions of New Oak Communications Inc and Netstation Corp -- transactions that were completed in the third quarter. Bay Networks did not specify why product demand was lower than expected but said several technology shifts in the market were factors. Despite this quarter's shortfall, Bay Networks still expects June quarter's revenue to be above the December quarter, the company said. Bay Networks, based in Santa Clara, Calif., is the world's third-largest manufacturer of computer networking gear, in terms of annual sales -- ranking behind Cisco Systems Inc. and 3Com Corp., in first and second place, respectively -- and ahead of fourth-ranked Cabletron Systems Inc. On Tuesday, Bay Networks' stock dropped $0.0625 to $26.50 a share on the NYSE. o~~~ O