Bay Networks celebrated its final results as an independent company with fourth quarter net income of $20.6 million, compared to a loss of $118 million last year.
The company, which is being acquired by Nortel, increased its revenues by 13.9 per cent to $618.3 million for the quarter.
For the year, Bay reported net losses of $34.8 million, though revenues jumped 15.2 per cent to $2.4 billion. The company blamed acquisition costs, including the $154 million charge on ongoing research and development from its New Oak and Netstation purchases.
Graeme Allen, Bay?s UK managing director, said 1997?s revenues were in line with expectations, and claimed the Emea region was the ?most outstanding geography?.
Allen said Europe, which grew by two per cent to represent 25 per cent of global revenues, saw growth in its remote access products. ?Shared media? products such as shared Ethernet hubs continue to decline in favour of switching products, he continued.
Into the new financial year, Allen said the company?s immediate concern will be to clear its message in the remote access world. Bay markets its Versalar product but Nortel codeveloped rival Rapport with Shiva. Bay/Nortel will also have to revise their competing network management systems.
Bay insists the merger will be less painful because it will keep its identity and it will be Nortel?s data networking division that will be subsumed into it. However it is unclear whose fiscal calendar the new unit will follow.
Bay?s shareholders are to vote whether they want the merger to go ahead on 15 September.
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