STOCKS TO WATCH: Cabletron, Dell, Delta 3 and Winstar

The network-equipment maker will see heavy action Friday after announcing plans to break into four operating companies.

Its shares moved up to 34 7/8 in after-hours activity after closing up 1 3/4 to 34 1/2 in Thursday's regular session.

In recent months Cabletron stock has rebounded on a combination of upbeat earnings reports and a sense the company was sharpening its focus. Despite the resurgence, Cabletron shares still trade at cheaper levels than other network hardware companies.

Cabletron recently took the first step in its reorganization when it recently sold FlowPoint Networks. At the time, Cabletron said would look at other ways to seize on the rapid growth in the network equipment industry.

The new operating companies include Riverstone Networks, which will sell hardware to communications service companies; Enterasys Networks, for corporate data networking equipment; Global Network Technology Services, a network consulting and services firm; and Aprisma Management Technologies, a vendor of network management software.

Dell will be active Friday after it tiptoed past analysts' reduced estimates in its fourth quarter, earning $436 million, or 16 cents a share, on sales of $6.8 billion.

First Call consensus lowered its profit estimate from 21 cents a share to 15 cents a share last month after Dell warning that its fourth-quarter earnings would fall short of expectations.

Dell shares closed up 3 15/64 to 38 51/64 ahead of the earnings report.

The $6.8 billion in sales marks a 31 percent improvement from the year-ago quarter when it earned $425 million, or 15 cents a share, on sales of $5.2 billion.

For the fiscal year, the PC maker earned $1.9 billion, or 68 cents a share, on sales of $25.3 billion, up from a profit of $1.5 billion, or 53 cents a share, on sales of $18.2 billion in fiscal 1998.

Total PC shipments jumped 36 percent from the year-ago quarter and 50 percent for the fiscal year.

The provider of low-cost Internet telephone service said its fourth-quarter net loss widened to 71 cents a share from a loss of 13 cents a year earlier. The company has been spending to build a network and attract customers. Deltathree.com rose 4 1/16 to 55 13/16 at Thursday's close.

Winstar posted a smaller-than-expected loss in its fourth quarter Thursday, losing $180.4 million, or $3.28 a share, on sales of $141.5 million.

First Call consensus expected the competitive local exchange carrier to lose $3.38 a share in the quarter.

Its shares closed up 2 1/16 to 83 3/4 ahead of the earnings report.

For the year, Winstar lost $700 million, or $13.72 a share, on sales of $445.6 million.

In the quarter, Winstar's gross profit margins improved to 35.4 percent, up from 10.5 percent in the year-ago quarter.

In the quarter, Winstar's broadband network expanded to 60 domestic markets, up from 30 at the end of 1998. It also more than doubled its building access rights to more than 8,000 buildings at year end, with over 1,500 access rights added in the fourth quarter alone.