Cabletron Q4 earnings edge analysts' predictions

Cabletron Systems has reported fourth-quarter net income of $US28.1 million, or 15 cents per diluted share, which excludes extraordinary charges, squeezing past First Call/Thomson Financial analyst estimates of 14 cents per share.

Including all income and other charges, the company's actual net income for the quarter that ended February 29 was $431.2 million, or $2.23 per diluted share, compared to actual net income of $42.6 million, or 22 cents per diluted share, in the same period last year when Cabletron also posted an actual net loss of $12.7 million.

Fourth-quarter revenue hit $381.8 million, up from $345 million in the year-ago quarter.

The company ended fiscal-year 2000 with net income of $69.9 million, or 37 cents per diluted share, up from a loss of $9.4 million a year ago. Company sales rose to $1.45 billion for the fiscal year, compared to $1.4 billion in fiscal-year 1999. Cabletron also reported earnings of $160 million before interest, taxes, depreciation and amortization, compared to earnings of $49.8 million a year ago.

Cabletron, during the fourth quarter of fiscal year 2000, said it would become a holding company that will launch four separate companies focused on particular areas of Internet infrastructure. Next week in New York, it will hold an event introducing the strategy and management of its new Enterasys unit, which will focus on serving Fortune 2000 enterprise customers.

Executives reportedly warned that as part of that restructuring, the company expects to lose money in the current quarter, with a likely loss of $25 million to $45 million.

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