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

To: Kiriakos Georgiou who wrote (4822)	8/24/1998 4:28:00 PM
From: Doug	Respond to of 8358

K.G: It is unfortunate that CS tripped just when margins in Networking changed dramatically from 35% to 12%.The only game plan now left is to increase revenue dramatically even if it means lower margins. If they can show revenue growth with very modest profits, you will see better days. You may be aware that our earnings estimate(Zacks) has ben reduced by 12.5% to 7c. Since we missed the last one by 2c they must have felt a reduction was in order. I still feel that CS should completely eliminate their inhouse manufacture and reduce their SG&A. There are many other things that can be done to improve earnings but they are too involved.