Feeds

Cabletron in dire straits

Company warns of third-quarter loss -- analysts foretell doom

  • alert
  • submit to reddit

Mobile application security vulnerability report

Any hopes that Cabletron had picked itself up after a disappointing year has been squashed after the third biggest producer of computer networking equipment warned of a fiscal third-quarter loss. Cabletron said it would report a loss of around ten cents a share, before charges, despite earlier predictions that it was expected to earn 11 cents a share. Revenue will range from $330 million to $340 million -- compared with $331.8 million last year -- the company has said. Cabletron blamed the loss on poor sales. This latest batch of bad news has come as bitter disappointment to the company and analysts believe it leaves Cabletron with little room for manoeuvre. Unless there is a dramatic turnaround, Cabletron will either have to team up with another company or find a buyer. "I don't believe they will survive on a go-forward basis unless they find a partner," said Craig Johnson, an analyst with the Pita Group. But Megan Graham-Hackett at Standard & Poor's Rating Service is even more blunt. "They've got a couple of assets that are attractive enough in a rapidly consolidating industry. They're definitely positioned to be taken over," she said. Cabletron's position has been made even more acute because it's been saddled with an outdated product line, analysts are saying, as it tried to compete with rivals Cisco Systems and 3Com which have both introduced more advanced products. The New Hampshire-based company has said it will publish the quarter's results on 21 December. Earlier this year Cabletron spent $372 million acquiring a number of companies including NetVantage, FlowPoint, Ariel Communications Systems Group and Yago Systems. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.