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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: Stash who wrote (2164)	12/2/1998 5:13:00 PM
From: VegasMan	Respond to of 90042

CS warns....may pose some problems and/or buying opportunities for other networkers. biz.yahoo.com biz.yahoo.com Cabletron Systems Announces Third Quarter Expectations ROCHESTER, N.H.--(BUSINESS WIRE)--Dec. 2, 1998--Cabletron Systems (NYSE:CS - news) today announced that, based on current information, it expects revenues for its third quarter of fiscal 1999, which ended November 30, 1998, to be in the range of $330 million to $340 million, as compared to $331.8 million for the third quarter of fiscal 1998. At these sales levels, the company expects a small operating loss of approximately $0.10 per share before non-recurring charges. The Company also will incur pre-tax charges related to the acquisitions of NetVantage, Inc., Flowpoint Corporation and the DSLAM division of Ariel Corporation. Final results for the third fiscal quarter are expected to be reported on December 21, 1998. ''This quarter was more challenging than we anticipated. We compete in one of the world's most competitive industries, which is characterized by significant pricing pressures, shifts in technology and longer market acceptance time,'' said Craig Benson, Cabletron's chairman and CEO. ''Despite these challenges, we now hold 33.6 percent of the worldwide chassis-based layer 3 switch market, the fastest growing and most exciting technology segment in all of networking, according to the Dell'Oro Group. Looking forward, our technology lead provides us with significant opportunity in this dynamic market segment,'' Benson continued. ''During our fiscal fourth quarter, we will be shipping the industry's first WAN interfaces to the layer 3 and 4 marketplace. This WAN market represents perhaps the biggest opportunity for layer 3 and 4 routing technology, both because of the need for increased bandwidth and for the ability to prioritize important applications without investing in huge WAN pipes. This delivers payback based on WAN costs alone as short as a few months. Cabletron's full product line is uniquely positioned to benefit from the explosive growth of the Internet and global networked economy, Benson concluded.'' About Cabletron Cabletron Systems, a premier provider of enterprise-class networking solutions, delivers dependable network access and communications to millions of people worldwide. With scaleable products designed for Fortune 1000 enterprise networks, service providers and small businesses, Cabletron provides simple, reliable and cost-effective business solutions for the information age. Cabletron's web site can be reached on the Internet at: cabletron.com. The revenue and earnings expectations discussed in this news release constitute forward looking information and final accounting results could differ materially. One factor that could cause results to differ is the resolution by the company of comments by the SEC on the company's Form 10-K for fiscal 1998 and Form 10-Q for its first quarter of fiscal 1999. For a better understanding of these comments, please refer to the Company's Form 10-Q dated October 16, 1998 where these comments were previously discussed in detail. For a detailed discussion of the general risks and uncertainties related to the company's business, please refer to the company's annual report on Form 10-K for fiscal 1998. VM