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Cabletron exceeds 2Q expectations

Cabletron Systems (NYSE: CS) returned to profits faster than analysts expected as the company topped estimates in the second quarter.

After market close Monday, the group of network companies reported fiscal second quarter net income of $1.1 million, or a penny per share, excluding special charges. First Call's survey of 14 analysts predicted a loss of a penny per share for the quarter ended Sept. 2. Analysts didn't predict a profit for Cabletron until the fiscal third quarter.

Including amortization and charges related to Cabletron's restructuring earlier this year, the company lost $110.9 million, or 60 cents per share.

Second quarter revenue for Cabletron's four operating companies rose to $241.1 million, up 10.4 percent from $218.5 million in the first quarter. Including sales from non-continuing segments, Cabletron saw revenue of $261.4 million.

The company's network management subsidiary, Aprisma Management Technologies, reported revenue of $17.3 million, a 15 percent gain from the first quarter. Enterasys, which sells equipment for corporate networks, saw 8 percent sequential growth to $190.7 million. Global Network Technology Services, a consulting unit, increased revenue to $12.5 million, up 20 percent from the first quarter. Cabletron's equipment vendor for service providers, Riverstone Networks, boosted revenue 10 percent sequentially to $20.6 million.

Shares of Cabletron rose 2 1/2 to 33 1/2 in Monday's regular trading, prior to the release of quarterly results.>