Networking equipment vendor Cabletron Systems on Wednesday reported a narrower than expected loss for its first fiscal quarter of 2001, and announced a timetable for when it plans to spin off its subsidiary companies.
Losses for the three-month period that ended on June 3 were $US3.7 million, or 2 cents per share. That compares with a profit of $7.3 million, or 4 cents per share, in the same same period a year ago, the Rochester, New Hampshire company said.
Financial analysts had expected Cabletron to report a loss of 3 cents a share for the quarter, according to 10 brokers polled by financial watchdog First Call/Thomson Financial.
First-quarter sales were $275.1 million, down from $349.5 million a year ago, Cabletron said.
Cabletron is in the midst of major restructuring effort that has transformed the vendor into four separate companies. On Wednesday, it said it expects to perform initial public offerings for two of the companies by the end of the year, market conditions permitting.
The first unit to go public will likely be Riverstone Networks, which offers infrastructure products for metropolitan area networks, Piyush Patel, president, chief executive officer and chairman of Cabletron, said in a statement.
For the first time, Cabletron also revealed separate financial results for the four subsidiaries. Following are results for the first fiscal quarter of 2001. The company didn't provide year-earlier comparisons:
Riverstone Networks had revenue of $15.8 million, up 24 per cent sequentially from the fourth quarter of fiscal 2000.
Aprisma Management Technologies, which makes networking products for service providers and large businesses, had sales of $15.1 million, up 13 per cent sequentially.
Enterasys Networks, which makes networking products for for voice and data networks, supply chain management, e-commerce and other areas that Cabletron refers to as "virtual enterprises", had sales of $177.1 million, up 5 per cent sequentially.
GlobalNetwork Technology services, which offers consulting services, had revenue of $10.4 million, up 29 per cent sequentially.
As a result of the restructuring, Cabletron has said it will discontinue some products that it doesn't consider central to its core offerings. The restructuring effort has been seen by some analysts as a move to compete more effectively with data networking giant Cisco Systems.