Bay Networks back in black
The networking giant posts a net profit of $20.6 million, compared with a loss of $118 million reported for the like period a year ago.
On a pro-forma basis, the networking giant met analysts' expectations, posting a profit of 12 cents per share for the quarter ended June 27. According to First Call, analysts had expected Bay to earn about 12 cents per share. The company posted quarterly revenue of $618.3 million, up from $543 million reported for the like quarter a year ago.
"We had a strong finish to fiscal 1998, as indicated by the 13 percent sequential growth we achieved in the fourth quarter," Bay Networks chief executive David House said in a statement. "Revenue from North America hit record levels, reflecting robust end-user demand. At the same time, channel inventories continue to be at healthy levels."
Bay Networks closed today at 34.8125, up nearly 7 percent. The earnings release came after the stock market closed.
As reported last month, Canadian telecommunications firm Northern Telecom said it would acquire Bay Networks for $9.1 billion, the latest example of consolidation in the computer networking business.