Cabletron Systems Announces Plan to Transform Business and Establish Four Independent Operating Companies.Business/Technology Editors ROCHESTER, N.H.--(BUSINESS WIRE)--Feb. 10, 2000 Fundamental transformation increases ability to respond to evolving market needs Cabletron Systems (NYSE NYSE See: New York Stock Exchange :CS) today announced that it plans to fundamentally transform its business through the formation of four independent operating companies. These companies--Riverstone Networks, Enterasys Networks This article or section contains information about scheduled or expected future events. It may contain tentative information; the content may change as the event approaches and more information becomes available. , Global Network Technology Services, and Aprisma Management Technologies--will focus on the key high growth areas of the communications marketplace--service provider, enterprise e-business, professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. and infrastructure management. &uot;We believe that the business is capable of vastly accelerated growth in these key markets. Our action today has a single purpose - to give us the focus and agility to seize these market opportunities and better serve our customers,&uot; said Piyush Patel, Cabletron's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. and president. &uot;Each of these companies will speak with clarity of purpose to its shareholders, customers, partners and employees.&uot; The four companies, and their target markets, are: Riverstone Networks: Riverstone, led by Romulus Pereira, President, will focus exclusively on the service provider market, including content hosting, Application Service Providers, POPs, CLECs, ISPs, MSOs and alternate carriers with the goal of delivering high performance, application enabled infrastructures. Enterasys Networks: Enterasys, led by Henry Fiallo, President, will focus exclusively on Global 2000 enterprise customers. Its solutions will enable customers to drive competitive advantage through their e-business infrastructures. Global Network Technology Services (GNTS GNTS Global Network Technology Services ): GNTS, led by Earle Humphreys, President, is a network consulting company that will focus exclusively on professional services, including the design, performance, management and security of complex networks for large enterprise and service provider customers. Aprisma Management Technologies Aprisma Management Technologies was created after Cabletron Systems was broken up into 5 smaller pieces, as the business unit to continue the highly successful SPECTRUM network management suite. It was acquired in early 2005 by Concord, which in turn was acquired by Computer Associates. : Aprisma, led by Michael Skubisz, President, will focus exclusively on delivering infrastructure management software for service provider and enterprise markets. Although the companies will initially be subsidiaries of Cabletron, the eventual goal is to have four separate, publicly traded companies publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. . The company presently anticipates that this will be achieved by spinning out these companies to its shareholders, preceded where appropriate by subsidiary IPOs. The transformation will complete the company's realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. of its operations and organizational structure begun several quarters ago and build on the revenue momentum, technological leadership and strong balance sheet it has developed over the last several months. &uot;In order to provide the best possible customer experience in this ever changing market - we need to transform ourselves to a new business model - one that allows us to focus exclusively on developing solutions tailored to individual markets and customers. This transformation is consistent with the way we are approaching these markets today -aligning our organization and resources to the customers we serve,&uot; said Patel. About Cabletron Systems Cabletron Systems, a premier provider of world-class networking solutions, delivers reliable network access and communications to millions of people worldwide. With scalable products designed for Global 1000 enterprise networks, service providers and small businesses, Cabletron is the e-business communications specialist in the Internet economy. Cabletron Systems products and services are used by leading Internet Service Providers Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. including MindSpring, Intellispace and Cybertech Wireless, leading e-business retailers such as toysmart.com, government organizations such as NASA NASA: see National Aeronautics and Space Administration. NASA in full National Aeronautics and Space Administration Independent U.S. and thousands of enterprise, healthcare, manufacturing and financial customers around the world. Cabletron Systems also supports a global network of Synergy Plus authorized distributors and resellers who deliver award winning technology and services in their regional markets. Listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. for more than a decade under the symbol CS, Cabletron is an S& 500 index company. Cabletron's web site can be reached on the Internet at www.cabletron.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Certain statements in this news release may constitute forward-looking statements and actual results could differ materially. Factors that could cause actual results to differ include general competitive conditions, pricing pressures, changing market dynamics, business disruption as a result of the transformation, and the continued market valuations being placed on communications infrastructure and service companies. 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for fiscal 2000. |
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