XYLAN'S STOCK FALLS 23 PERCENT : QUARTER'S EARNINGS DISAPPOINT INVESTORS.Byline: Dave McNary McNary may refer to:
Shares of Calabasas-based Xylan xylan /xy·lan/ (zi´lan) any of a group of pentosans composed of xylose residues; major structural constituents of wood, straw, and bran. Corp. lost 23 percent Tuesday Tuesday: see week. to a record low on disappointment over the network-equipment specialist's fourth-quarter results and growth prospects. Xylan, which hit a record high of $76 in May, lost $6.50 to close at $22 on trading of 7.15 million shares, or nine times its three-month average of 785,400. The issue also was pushed down by a sell-off Sell-Off The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the value of the security. Notes: A sell-off may occur for many reasons. in networking stocks, including Cisco Systems “Cisco” redirects here. For other uses, see Cisco (disambiguation). Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. , off $1.125 to $67.125, and 3Com, which lost $3.25 to $58.75. Additionally, Deutsche Morgan Morgan, American family of financiers and philanthropists. Junius Spencer Morgan, 1813–90, b. West Springfield, Mass., prospered at investment banking. Grenfell analyst Noel Lindsay cut his 1997 earnings estimate by 6 cents to 70 cents a share. After the market closed Monday, Xylan reported earnings of $5.03 million, or 11 cents a share, compared with earnings of $437,000, or 1 cent a share, in the 1995 period. Sales nearly tripled to $41.5 million from $15.5 million. Sales and profits were in line with Wall Street estimates, but during a conference call with analysts late Monday, Xylan executives indicated that they expect modest growth until the third quarter. That forecast was at odds with the growth expectations of several analysts. Xylan sells computer network switches, which enable computers to communicate with each other whenever they need to. The 4-year-old company went public in March at $26 a share with an offering of 3.2 million shares and the issue soared to $58.375 on its first day of trading. Since last summer, shares have been pulled down by the resignation of a chief financial officer over management differences, concern about competition from larger rivals and the relatively high number of short sellers owning the stock. |
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