Networking vendor Cabletron Systems reported third-quarter income on Monday of $US22 million or 12 cents per share on a pro forma basis, company officials said in a statement. The results beat the expectations of Wall Street analysts by two cents per share, according to a consensus estimate gathered by First Call/Thomson Financial.
Net sales for the period, which ended November 30, were $371.7 million, up about 13 percent from sales of $329.9 million a year ago, Cabletron officials said.
The positive results reflect the company's success at streamlining its operations and focusing more on its core businesses, Piyush Patel, Cabletron's president and chief executive, said in the statement. Cabletron sells hardware, software and services to businesses and service providers that build voice and data networks.
In the third quarter a year ago, the vendor reported a pro forma net loss of $23.8 million or 14 cents per share.
Including charges and other income, actual third-quarter net income was $26.1 million or 14 cents per diluted share. This compares to an actual net loss of $84.5 million or 50 cents per diluted share in the same period last year, the company said.
Earlier yesterday, Cabletron also announced that it has closed the sale of its FlowPoint division, which makes DSL (digital subscriber line) and CPE (customer premises equipment) products, to Efficient Networks. Efficient issued 13.5 million shares for FlowPoint, valuing the sale at about $1 billion.
In connection with the sale, Cabletron said it has struck a manufacturing alliance with Efficient through which Cabletron will continue to tackle the DSL market.
Cabletron's shares on the New York Stock Exchange closed at $27.75 Monday evening, down 75 cents from the previous day. The financial results were announced after the market closed.