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

To: polarisnh who wrote (3300)	4/1/1998 12:13:00 PM
From: Doug	Respond to of 8358

Steven: I would agree with you that the Founding fathers were to blame for the debacle. This technology game is a fast moving one. It requires an R&D and Sales strategy based on quick identification and analysis of market trends and very fast responses to those demands. The Mgmt of CS have been exceptionally slow. The margins in Intelligent switches are being squeezed and CS needs to respond to that by either ramping up in house productivity or Out-sourcing to EMC's either here or in S.E Asia. Their Sales per worker is way too low. I am aware of CS's fondness for inhouse Manufacture. Presently JIT(just in time) EMC (Electronic Contract manufacture) is increasing whilst Inventory & in-house Manufacturing is decreasing. With the advent of ASIC based Intelligent chips which requires little Software I believe CS is fighting the trend. Their recent attempts to downsize have been cosmetic. I forsee the next Q will be another down one. They will now include Transition of Mgmt. as an "add on" to their last Portfolio of excuses. Unless Mmgt. show a Q with an earnings explosion, it is unlikely that the Street will show any interest. Somehow that message should be conveyed to the Mgmt. and employees of CS.

To: polarisnh who wrote (3300)	4/1/1998 1:34:00 PM
From: J Bertrand	Read Replies (2) \| Respond to of 8358

Steven, Obviously you know more about Levine and Benson than I do. My point was, and apologize if I wasn't clear, was not to say that Benson wasn't responsible. Certainly he is. What I am most excited about is that Benson is aligned with the shareholders. He has lost over $450 million in value since May. I think he will be doing everything possible to improve Cabletron's stock price. He certainly has HUGE incentive to make it work. I think you are right. Reed probably was an escape goat. But, I think I understand the psychology. Reed was playing with Benson's money. Right or wrong, how much time would you give somebody when they were in charge of your multi million dollar investment? I think he just became impatient. I think Reed helped him with strategy, but I don't think that Benson is a sit back and let somebody else do it kind of guy...from what I have read. You know him better than I. Finally, I think these guys are survivors. I think that they are scrappy. If they were not survivors, they wouldn't have been able to get the business to a billion in sales. Based on Benson's survival ability and his alignment with shareholder interests, I can't see how this change will not be beneficial to shareholders. Just my opinion. The psychology is on our side Take care Jeff Bertrand