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

To: skippy who wrote (6252)	6/4/1999 9:47:00 AM
From: BWAC	Read Replies (1) \| Respond to of 8358

And the rats begin to jump the sinking ship.

To: skippy who wrote (6252)	6/4/1999 10:17:00 AM
From: BMcV	Respond to of 8358

well, Skipster, your story sounds pretty much par for the course, and very much like the reason CS with CB couldn't be taken seriously. Let's hope for the best from the new guy, for all our sakes. The PR on Patel's appointment had a slight anti-NH bias, I thought, with the comment about "Californian entreprenurial spirit" being what CS needs.

To: skippy who wrote (6252)	6/22/1999 6:15:00 PM
From: Michael Hart	Read Replies (1) \| Respond to of 8358

[ Another Hot Flash from the Skipmaster.. ] Good call Skippy. The following was in the local paper: fosters.com Mike ------------------------ Cabletron cutback on deal means no move to Pease By TERESA ROBINSON Foster's Daily Democrat Rochester Bureau Chief ROCHESTER — Cabletron Systems has cut back on an agreement with Celestica Inc., meaning employees will not move to a new facility at the Pease International Tradeport. Instead, the computer networking company will keep manufacturing operations in Rochester and eventually work with several vendors, a company spokesman said this morning. Cabletron announced a deal in March to sell its entire manufacturing operations to Toronto-based Celestica. Under the original plan, Celestica would have taken over all Cabletron manufacturing operations in an "outsourcing" arrangement in which it would make Cabletron products. Cabletron's equipment would be sold to Celestica. However, Cabletron officials said Monday plans for outsourcing are progressing slower than planned, with Celestica taking over only 40 percent of the manufacturing operations. "We are going to move a little slower in terms of our long-term relationship," said Cabletron Chief Executive Officer and President Payush Patel. Cabletron is now looking to have its products manufactured by more than one company, spokesman Darren Orzechowski said this morning. The idea is to create a broader product line and improved competition in the marketplace to encourage better pricing. "It's like anything you buy," Orzechowski said. "If there's more competition, there's better prices." Under the original plan, Cabletron manufacturing employees would have been rehired by Celestica and operations moved to a new facility to be built at Pease. The employees will remain with Cabletron. Orzechowski added it is his understanding Celestica will go ahead with the Pease construction project, but Celestica officials could not be reached this morning for confirmation. Celestica also operates a facility in Exeter. Orzechowski noted that Cabletron is still committed to its agreement with Celestica, but has just scaled back its scope. Cabletron has been a staple in Rochester since the 1980s when Craig Benson and Bob Levine began the business in a Gonic garage. Early on, the company soared to the forefront of the computer networking industry before its competitors also started to take over the majority of the market. Stock prices neared $45 two years ago, but plummeted after a series of layoffs and organizational changes, including the resignation of both its founders. Benson announced his resignation earlier this month and was replaced by Patel. Cabletron's stock, which was about $7 at the time of the Celestica announcement in March, quickly doubled. The closing price Monday was $15.75 per share. © 1999 Geo. J. Foster Co.