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Riverstone tops Wall Street estimates

Riverstone Networks announces a smaller-than-expected loss, beating analysts' estimates by 2 cents in its first stand-alone earnings report since spinning off from Cabletron.

    Riverstone Networks announced a smaller-than-expected loss Thursday, beating Wall Street analysts' estimates by 2 cents in its first stand-alone earnings report since spinning off from Cabletron Systems.

    Excluding one-time costs, Riverstone reported a fourth-quarter loss of $5.5 million, or 6 cents per share, compared with a loss of $6 million, or 7 cents per share, during the same time last year. Fourth-quarter revenue nearly tripled, from $12.8 million last year to $35.1 million this year.

    Wall Street analysts had expected a fourth-quarter loss of 8 cents per share, according to analysts polled by First Call.

    Riverstone, which makes networking hardware that telecommunications service providers use to speed content over the Internet, competes against Cisco Systems, Nortel Networks, Extreme Networks, Foundry Networks and others in the lucrative service provider market. Riverstone focuses primarily on networks for metropolitan areas and Internet service providers.

    The company last month raised $120 million in its initial public offering. Riverstone's shares, which opened at $10, closed at $8.63 Thursday.

    "Riverstone Networks' strong fourth-quarter...results demonstrate our focus and execution in the metropolitan area network, a market that continues to see investment from tier-one carriers and new entrants alike," Riverstone Chief Executive Romulus Pereira said in a statement.