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To: violatrader who wrote (27640)	3/15/1999 6:51:00 PM
From: puborectalis	Respond to of 120523

A PHOENIX RISES!!!!CS making relationships with MSFT,NOVL,NSCP by: fasthustle (47/M/Washington,N.C.) 16753 of 16755 Beleaguered Cabletron: On the mend or on the outs? By Paula Musich, PC Week Online March 15, 1999 9:00 AM ET When it reports fourth-quarter numbers next week, Cabletron Systems Inc. will use the occasion to kick off a new directory-enabled networking initiative. But the news begs the question: Is the beleaguered networking supplier glossing over another disappointing quarter or hoping to re-energize itself with a slew of new products, services and alliances? While the Rochester, N.H., company missed third-quarter revenue and earnings targets by a wide margin in November, financial analysts are split on whether Cabletron has turned the corner. Some are assessing the company more optimistically now, and longtime customers appear to be sticking with Cabletron for the time being. "We're not unhappy," said Paul Johnson, senior technical analyst at BancBoston Robertson Stephens, in New York. "They have some things coming that will make people stand up and take notice." One of those is a new relationship with Novell Inc. Under the deal, Cabletron will build Novell Directory Services support into its SmartSwitch and SmartSwitch Router lines and Spectrum network management platform, according to Mike Skubisz, Cabletron's chief technology officer. Cabletron is also establishing relationships with Netscape Communications Corp. and Microsoft Corp. for additional directory services capabilities. By NetWorld+Interop in May, Cabletron will roll out new policy-based networking and accounting tools, including integration with Telco Research Corp.'s traffic accounting application. Cabletron will also target service providers with new virtual private networking and voice-over-IP offerings, Skubisz said. Over the next several months, the company plans to cut prices and boost performance in its SmartSwitch and SmartSwitch Router lines and introduce professional services based on Spectrum. "From a technology perspective, the things they're doing are really good," said Cabletron customer Ron Hoffman, executive director of worldwide networks, desktop and telecommunications at Seagate Technology Inc., in Scotts Valley, Calif. "They may turn it around." From a business perspective, Cabletron's turnaround has been glacial. Since founder Craig Benson retook the helm from President Don Reed a year ago, the competitive landscape has changed dramatically, with large telecommunications suppliers buying their way into the data communications market. Analysts have long considered Cabletron an acquisition target, a possibility that Skubisz didn't dispute, as long as "the right partner" were involved. Meanwhile, Cabletron has lost cachet with some long-term customers. "The last major transactions we have steered toward Cisco [Systems Inc.] because of the uncertainty," said Curt Schumacher, vice president of system operations at the Chicago Board of Options Exchange. "It's tough presenting [Cabletron's] case to upper management." Still, the Options Exchange continues to buy Cabletron equipment, said Schumacher, who calls himself a Cabletron "poster child." "We're not giving up," he said. "I can't--we have a huge installed base. But now we look project by project. Some they win, and some they lose."