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

To: Bob Walsh who wrote (5772)	3/22/1999 4:56:00 PM
From: BMcV	Read Replies (1) \| Respond to of 8358

So, are they priming us for takeoff, or trying to cushion the blow?

To: Bob Walsh who wrote (5772)	3/22/1999 5:05:00 PM
From: BMcV	Read Replies (1) \| Respond to of 8358

Good-looking Q from CS. Revenues up, gross margin up, DSOs down, made a profit vs expected loss. This, with the ridiculously named "Ignition" Inititive, should send us up tomorrow. Looks like we finally hit bottom and have turned around: biz.yahoo.com Monday March 22, 4:41 pm Eastern Time Company Press Release Cabletron Announces Fourth Quarter and Fiscal Year Results ROCHESTER, N.H.--(BUSINESS WIRE)--March 22, 1999--Cabletron Systems, Inc. (NYSE:CS - news) today reported financial results for the fourth quarter and fiscal year ended February 28, 1999. Net sales for the fourth quarter were $345.1 million as compared with $311.5 million in the fourth quarter of fiscal 1998. Net income for the quarter was $2.5 million, or $.01 per share on a diluted basis, exclusive of a fixed asset loss, compared to a net loss of $6.3 million, or $.04 per share, exclusive of special charges of $257.0 million (net of tax) or $1.63 per share in a comparable period last year. In preparation for the Company's new initiatives, including the outsourcing of manufacturing, the Company recognized a fourth quarter 1999 fixed asset loss for idle, obsolete and discarded equipment. Including this loss, the Company reported a net loss for the fourth quarter of $8.3 million, or $.05 per share, compared with a net loss of $263.4 million, or $1.67 per share, in last year's fourth quarter. During the quarter the Company reached significant financial and market milestones. -0- -- Return to profitability, net income increased $23.5 million sequentially, exclusive of the fixed asset loss and special charges -- Revenue increased 11% this quarter compared to same quarter last year -- Cash & investments increased 23% or $91 million sequentially -- Gross margin percentage increased 9% sequentially -- Record international annual revenue of nearly $600 million -- S G & A expense dropped 14% sequentially -- Lowest headcount in three years -- Lowest inventory in three years -- Lowest accounts receivables and DSO's in two years -- Layer 3 Switching revenue represented approximately 15% of overall revenue ''Cabletron has never been more focused,'' said John d'Auguste, Cabletron's president of operations. ''Our outsourcing agreement with Celestica, combined with other important initiatives we announced today under Project Ignition, are essential steps as we set out to grow the company and increase shareholder value. We have aggressively reduced our costs throughout the quarter and will continue to refine our investment priorities in the coming fiscal year.'' In addition, the company experienced further progress in the migration from shared to switched revenue, as highlighted below: -0- -- Q1/99 Shared Media was 15% and Switched was 54% of Revenue -- Q4/99 Shared Media was 8% and Switched was 63% of Revenue About Cabletron Systems 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 is the business communications specialist for the information age. Cabletron's web site can be reached on the Internet at: cabletron.com. The net income results set forth in this news release including those for prior periods are subject to 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 more complete discussion of the SEC's comments, please refer to the Company's Form 10-Q dated October 16, 1998 where these comments were previously discussed in detail. -0-