Feeds

Cabletron does OK amid networking gloom

Holds its head above water

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

Networking and telecoms outfit Cabletron Systems has surfed over the sea of despond afflicting its competitors by meeting industry expectations with its first quarter results.

Cabletron, which these days exists as a holding company for four businesses, yesterday announced combined revenues of its four subsidiaries at $311 million, compared to $217 million in the same quarter last year. It reported sales of $291 million in its previous quarter.

On these figures, Cabletron's net income was $9.8 million for its first quarter.

Hardly reason to dance in the streets of Rochester, New Hampshire (the loci of Cabletron's endeavours) - but compared to the performance of Cisco, Nortel and Lucent of late - it's a result in every sense of the word.

The encouraging figures have prompted Cabletron to announce it expects to complete the spin-out by mid-August of its Riverstone Networks unit, which markets Metropolitan Area Networking kit to service providers (incidentally something due to happen last year, but let's not quibble here).

Cabletron's renewed and aggressive timetable calls for the float of its enterprise networking subsidiary, Enterasys Networks (by far its largest revenue earner), immediately after this.

Aprisma Management Technologies, which sells Spectrum network management software, will be spun out of Cabletron, with (if plans pan out) an offer to Cabletron shareholders. This is expected to happen by the end of the year.

Joker in the pack, GNTS, is up for sale or disposition by its parent firm, with an announcement due by 16 July.

Cabletron, long considered the Rolls-Royce of networking, with clients like NATO, the BBC and err... Rolls-Royce, weathered a decline in fortunes for much of the last three years even while its competitors were enjoying boom times. Essentially it relied too heavily on hubs for its revenues while the market migrated to LAN switches, and as arch-enemy Cisco Systems tried to pitch its kit against circuit switched technology - which telcos know and trust.

Now Cabletron, perhaps inadvertently, is reaping the benefits of a later and more conservative entry into the telecoms market. It's also got a smart cookie at the helm these days in the shape of chief executive, Payush Patel.

The collapse of competitive carriers in the States, who had data centres full of part-paid Cisco and Lucent kit, has had a monstrous effect of those former darlings of Wall Street, as a slowdown in IT spending in general has piled on the misery.

Cabletron and emergent firms, most notably Juniper Networks, have held their head above water as Cisco et al have shed staff and trimmed sales and earnings forecasts. ®

Related Stories

Cabletron results a bright spot in the networking gloom
3Com loses $518m in Q4
Nortel axes 10,000 more jobs
Lucent to restate sales and cut 10,000 (full time) jobs
Cisco loses $2.69 billion on declining sales
Cisco boss slashes salary to $1
Cisco calls halt on Borg-like acquisition spree
Where have all the Cisco customers gone?
PSINet files Chapter 11

Secure remote control for conventional and virtual desktops

More from The Register

next story
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
NASA launches new climate model at SC14
75 days of supercomputing later ...
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
DEATH by COMMENTS: WordPress XSS vuln is BIGGEST for YEARS
Trio of XSS turns attackers into admins
SanDisk vows: We'll have a 16TB SSD WHOPPER by 2016
Flash WORM has a serious use for archived photos and videos
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.