Cabletron Systems first quarter to be below expectations.ROCHESTER, N.Y.--(BUSINESS WIRE)--June 2, 1997--Cabletron Systems Inc. announced that, based on current information, it expects revenues for its first quarter of fiscal 1998 to be in the range of $360 million to $370 million which compares to $324 million for the first quarter of fiscal 1997. The company expects earnings for the quarter to meet or slightly exceed earnings per share of $0.37 or $57.1 million in net income, reported for the first quarter of fiscal year 1997. The company expects to release final results for the first fiscal quarter on June 23. Chairman and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. Craig R. Benson said that management does not yet have details for the quarter of fully explain these expected results. He indicated that demand appears to have been strong during the quarter for Cabletron's newer high-end switching products such as MMAC-Plus 6 and SmartSwitch 6000 and for its Spectrum Software but softer for its traditional shared media products and some other mature products. Delays in production availablity on the new SmartSwitch products created a backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. on these products and may have resulted in some lost sales opportunities. He said that sales results for some operations, particularly Europe, fell substantially short of their targets at the end of the quarter. Additionally, overall margins are expected to be impacted primarily by the sales shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. as well as by product mix and other factors. Benson stated that while sales rose 10 percent over the comparable prior period he was concerned with the overall level of effort expended ex·pend tr.v. ex·pend·ed, ex·pend·ing, ex·pends 1. To lay out; spend: expending tax revenues on government operations. See Synonyms at spend. 2. in achieving these sales levels and is guarded about the company's typically more seasonal summer quarter; however, with the new products already introduced and a more seasonally strong selling period, the company is optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about its outlook in subsequent more seasonally strong quarters. As previously disclosed, like other networking companies, Cabletron has been experiencing longer sales cycles for its core products as a result of the increasing dollar amount of customers' orders and longer customer planning cycles. The revenue and earnings expectations contained in this press release constitute forward looking information, and actual results could differ materially. Among the factors that could cause actual results to differ are final accounting results, competitive conditions, including new product announcements, technological changes and changes in overall demand levels for computer networking
Computer networking is the engineering discipline concerned with communication between computer systems or devices. products. For a more detailed discussion of the risks and uncertainties related to the company's business, please refer to the company's Annual Report of Form 10K for fiscal 1997. About Cabletron Systems Inc. Cabletron Systems is a recognized leader in providing high-performance Intranet and Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the solutions, including LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. and WAN switches, remote access products and advanced network and systems management software. Under its Synthesis product framework, Cabletron markets products to businesses and customers throughout the world for linking and managing enterprise-wide networks. With corporate headquarters in Rochester, N.H., Cabletron employs 6,600 people worldwide. Cabletron's common stock is traded over 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. under the symbol CS. Cabletron's World Wide Web site can be reached on the Internet at http://www.cabletron.com . CONTACT: Cabletron Systems Inc. Jim Caldwell Jim Caldwell is an American television presenter. He was the host of Tic Tac Dough from 1985 until its cancellation the following year. He later hosted Top Card for TNN, The Nashville Network, for 2 seasons. Since the early 1990s, Caldwell has hosted dozens of infomercials. 603/337-4225 |
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