Bay Networks stock plunges
Bay Networks' stock hits a 52-week low a day after it announced that its CEO has resigned and that quarterly results would plumment 91 percent.
The networking equipment manufacturer, which traded as low as 20-1/4 during the day, announced its results after the market's close. The company's shares closed at 24-1/4 yesterday.
Bay Networks reported earnings of $5.6 million for the quarter ending September 30, compared with $63.2 million a year ago. The quarterly results included a one-time charge of $42.6 million for its acquisition of LANcity in September.
Bay Networks' revenues, meanwhile, climbed 14.2 percent to nearly $522.7 million for the quarter over a year ago.
The earnings report followed the announcement that chief executive Andrew Ludwick has resigned. Paul Severino, Bay Networks' chairman, will serve as acting chief executive.
Ludwick was the founding president of Bay Networks, which was created in 1994 after the merger of SynOptics Communications and Wellfleet Communications. He will continue to serve on the company's board of directors.