Banyan is bracing itself for a set of disappointing first-quarter results later this month.
The networking company warned analysts last week that revenues will be down and that it expects to make a loss for the three months ended 31 March. The audited results will be posted on 21 April.
Banyan said it expects revenues for the quarter to be in the region of $20 million (#12.5 million) to $21 million. It also expects to post a net loss of between $5.5 and $6.5 million, or a loss of $0.32 to $0.38 per share, compared to the $0.15 per share earnings predicted by Wall Street.
For the same quarter last year, the company's revenues were $29.9 million and profits stood at $400,000. Banyan's revenues and profits have now been in decline for a year.
Banyan is going through a turbulent time, with the loss of its CEO, David Mahoney, last year, an extensive restructuring last November and the arrival of a new CEO, William Ferry, in February.
In a statement issued last week, Ferry hinted that further reorganisations may be necessary. "In the light of our expected results, it is clear that we must act swiftly to reduce our overall cost structure and improve our responsiveness to customers as we deliver standards-based solutions to their networks," he said.
He blamed the poor results on purchasing delays in several unnamed key accounts, delays in new product deliveries and uncertainty resulting from the changes in senior management.
"We are working to strengthen our customer relationships, accelerate the evaluation of new products and integrate these products with our customers' networks," Ferry concluded.
Meanwhile, fellow networking firm Cabletron posted positive results for the fourth quarter, ended 28 February 1997. It announced profits of $72.6 million before acquisition charges, compared to $53.4 million for the same period last year. For the year, revenues were $1.4 billion, a 28% increase on last year.
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