Networking equipment and services vendor Cabletron Systems this week announced a larger than expected loss for its third quarter, after a dip in sales.
Cabletron reported a net loss of $21.2 million for the quarter ended 30 November, 1998, compared with a profit of $19.9 million during the year earlier period. Loss per share was below analysts expectations of $0.12 per share, to just $0.10 despite an earlier profit warning.
Sales were down slightly for the period. During the quarter sales totalled $329.9 million, compared with $331.8 million in the same period a year earlier.
The company also took an exceptional charge of $74.7 million during the quarter for the acquisitions of Netvantage, Flowpoint and Ariel's Dslam subsidiary.
Cabletron has made life difficult for itself, with a narrow product line, historically weak marketing and channel sales, as well as battling against reduced demand for devices such as hubs.
Analysts blame the company's management and have suggested that chief executive Craig Benson should resign. Cabletron is also rumoured to be an acquisition target for a communications giant such as Ericsson, Lucent or Nortel.
"We have some work to do on our operating basis, but I am enthused by the growth in our key driving sectors," said Benson in a statement. Benson added that the company's priority in the coming quarter was to increase revenue.
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