Cabletron Systems reports record third quarter earnings and revenue.ROCHESTER Rochester (rŏch`ĕstər, –ĭstər). 1 City (1990 pop. 70,745), seat of Olmsted co., SE Minn.; inc. 1858. , N.H.--(BUSINESS WIRE)--Dec. 15, 1994--Cabletron Systems Inc. (NYSE NYSE See: New York Stock Exchange :CS) today reported record operating results for its third quarter that ended Nov. 30, 1994. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $210.0 million represented a 34 percent increase over sales of $156.5 million reported in the third quarter of the preceding year. Pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern earnings of $64.0 million represented a 34 percent increase over pretax earnings of $47.8 million reported in the comparable quarter of the preceding fiscal year. Worldwide sales for the first nine months of fiscal 1995 were $584.7 million, a 36 percent increase, compared to $429.9 million in the first nine months of the preceding fiscal year. Net income in the third quarter ended Nov. 30, 1994 totaled $41.8 million or 59 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. compared to net income of $31.2 million or 44 cents per share in the comparable quarter of the preceding fiscal year. Net income for the nine months of fiscal 1995 totaled $116.5 million of $1.63 per share, compared to net income of $85.7 million or $1.21 per share for the comparable nine months of the prior fiscal year. "Cabletron (Cabletron Systems, Inc., Rochester, NH) A networking company founded in 1983 and separated into three companies in 2000: Enterasys Networks (www.enterasys.com) for enterprise class routers and switches, Riverstone Networks (www.riverstonenet. expanded its product offerings this quarter with the addition of 18 new Token Ring/SNA solutions," said S. Robert Levine, Cabletron's president and chief executive officer. "Cabletron also added new sales offices for its customers in Chile, China and Malaysia." "Cabletron continues its industry-leading track record of 23 consecutive quarters of record profits and sales as a public company, and more than 40 quarters of record sales and profits as a public or private company. This record is a direct result of the dedication and support of our employees and shareholders, and the commitment to work together with our customers to develop the premier products and service in the industry," said Levine. Headquartered in Rochester, N.H., Cabletron Systems is the worldwide modular hub A network hub that is configured by adding different modules, each supporting a topology, such as Ethernet, Token Ring, FDDI, etc. See hub. market leader in the networking industry-(b). Cabletron is ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001-certified and develops, manufactures and markets Ethernet Ethernet Telecommunications networking protocol introduced by Xerox Corp. in 1979. It was developed as an inexpensive way of sending information quickly between office machines connected together in a single room or building, but it rapidly became a standard computer , FDDI (Fiber Distributed Data Interface) Often pronounced "fiddy," it was a LAN and MAN access method that had its heyday in the mid-1990s. FDDI was an ANSI standard token passing network that transmitted 100 Mbps over optical fiber up to 10 kilometers. , token ring A local area network (LAN) access method developed by IBM. Conforming to the IEEE 802.5 standard, Token Ring uses a token ring access method and connects up to 255 nodes in a star topology at 4, 16 or 100 Mbps. and ATM networking products based on its Integrated Network A network that supports both data and voice and/or different networking protocols. See converged network and new public network. Architecture (INA Ina (ē`nä), city (1990 pop. 60,062), Nagano prefecture, central Honshu, Japan, on the Tenryu River. It is an agricultural and industrial center with a famous agricultural school. ). The INA strategy provides standards-based products and services necessary to build and manage a global, distributed platform of interconnected local and wide area networks. Cabletron's common stock is traded 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. under the symbol CS. The company reported record revenue of $598.1 million and earnings of $119.2 million for the fiscal year 1994. Cabletron now services more than 63,000 customer sites around the world. (b)-Source: Dataquest Incorporated; February 1994
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Cabletron Systems Inc.
Consolidated Condensed Statements of Income
(three months and nine months ending Nov. 30, 1994 and Nov. 30, 1993)
(in thousands, except earnings per share)
(unaudited) (unaudited)
Third Quarter Nine Months
1994 1993 1994 1993
Net sales $210,013 $156,525 $584,712 $429,944
Cost of sales 85,435 63,756 237,962 175,083
Gross profit 124,578 92,769 346,750 254,861
Operating expenses:
R&D 22,003 15,847 60,350 43,256
S Q& A 41,036 30,553 114,619 83,828
Operating income before
interest 61,539 46,369 171,781 127,777
Interest income (net) 2,421 1,428 6,631 4,121
Income from operations before
income taxes 63,960 47,797 178,412 131,898
Income taxes 22,130 16,627 61,957 46,225
Net income 41,830 31,170 116,455 85,673
Earnings per share 0.59 0.44 1.63 1.21
Weighted average common shares
outstanding 71,503 71,123 71,450 70,920
Note:
Weighted average common shares outstanding reflects 2.5-for-one
stock split on Sept. 12, 1994
Cabletron Systems Inc.
Consolidated Condensed Balance Sheets (ended Nov. 30, 1994 (unaudited)
and Feb. 28, 1994) (in thousands)
(unaudited)
11/30/94 2/28/94
Assets
Cash & short-term investments $224,069 $163,719
Accounts receivable (net) 74,999 61,027
Inventories 108,997 78,950
Deferred taxes 14,079 14,079
Other assets 10,614 8,678
Total current assets 432,758 326,453
Investments 86,426 92,112
Property, plant & equipment (net) 106,376 79,494
Capitalized software costs (net) 850 1,014
Total assets 626,410 499,073
Liabilities & Stockholders' Equity
Accounts payable 28,260 36,466
Accrued liabilities 42,996 29,894
Income taxes payable 8,880 4,341
Total current liabilities 80,136 70,701
Deferred taxes 4,580 4,580
Stockholders' equity 541,694 423,792
Total liabilities & Stockholders'
equity 626,410 499,073
CONTACT: Cabletron Systems
Ed Cortes, 603/337-4225
Michele Jachim, 603/337-3366
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