Brittney Griner Back in US Blur Your Home on Google Maps Gift Picks From CNET Editors 17 Superb Gift Ideas Guillermo del Toro's 'Pinocchio' 'Harry & Meghan' on Netflix Prepping for 'Avatar 2' Lensa AI Selfies
Want CNET to notify you of price drops and the latest stories?
No, thank you

Cabletron Systems delivers in fourth quarter

After falling off Wall Street's radar screen for the better part of two years, network-equipment maker Cabletron Systems took another significant step in its recovery Wednesday when it beat analysts' estimates by a penny a share in its fourth quarter.

Cabletron (NYSE: CS) posted a profit of $28.1 million, or 15 cents a share, on sales of $381.8 million.

First Call consensus expected it to earn 14 cents a share in the quarter.

Ahead of the earnings report, Cabletron shares closed off 4 1/4 to 47 3/4.

"We are very pleased with our results for the fourth quarter, the fifth consecutive quarter Cabletron has met or surpassed Wall Street expectations," said CEO Piyush Patel in a prepared release. "Our business metrics have continued to greatly improve and our balance sheet is the strongest it has ever been."

After falling to a low of 7 3/16 in April, Cabletron officials knew it was time for a change.

Last month, Cabletron announced that it would split into four separate companies.

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.

Following the announcement, Cabletron shares doubled to a 52-week high of 52 3/4 earlier this month.

For the fiscal year, Cabletron earned $70 million, or 37 cents a share, on sales of $1.46 billion compared to a loss of $9.5 million, or 6 cents a share, on sales of $1.41 billion in fiscal 1999.

Analysts are looking for a profit of 74 cents a share in fiscal 2001.

Eight of the 16 analysts following the stock maintain either a "buy" or "strong buy" recommendation while the other eight call it a "hold."