Cabletron Systems (NYSE: CS) topped analyst estimates in the third quarter.
After market close Monday, the network equipment vendor reported a fiscal third quarter profit of $22 million, or 12 cents per share, excluding goodwill writedowns and a one-time gain. First Call's survey of 15 analysts predicted a profit of 10 cents per share, not including amortization costs.
In after hours activity following the earnings report, Cabletron shares traded at 27 1/2. The stock closed Monday's regular trading at 27, down 1 for the session.
Including an expense of $7.5 million for acquisition-related writedowns, and one-time gains of $9.3 million, Cabletron earned $26.1 million, or 14 cents per share, for the quarter ended Nov. 30.
Third quarter revenue rose to $371.7 million, up 4.2 percent sequentially and up 12.7 percent year-over-year.
"The positive financial results underscore the continuing success of our efforts to streamline operations, focus on our core businesses and attain the number one or number two market share in the segments that we target," said Piyush Patel, Cabletron's president, CEO and chairman.
Also Monday, Cabletron said it has closed the previously announced sale of FlowPoint DSL to Efficient Networks (Nasdaq: EFNT) in a stock deal valued at about $1 billion. ""We have also committed to pursue opportunities to enhance shareholder value," Patel said. "The sale of FlowPoint and the launch of Aprisma are the first steps in this strategy."
Since bottoming out in early March, shares of Cabletron have risen nearly 243 percent. Among 16 analysts polled by Zack's Investment Research, 10 maintain the equivalent of a "hold" rating on Cabletron, four recommend it as a "strong buy", and two have "moderate buy" ratings on the stock.>