Cabletron predicts Q3 operating loss

Cabletron Systems on Wednesday said it expects to report a third-quarter operating loss of 10 cents per share before non-recurring charges on revenues of $US330 million to $340 million. Revenues for the same period last year were $331.8 million.

Analysts polled by First Call had expected the networking company to report a profit of 11 cents per share for the quarter, which ended November 30, 1998. Cabletron is due to reveal its actual numbers on December 21.

Cabletron also said it will incur pre-tax charges related to the acquisitions of NetVantage, Flowpoint and the DSLAM division of Ariel. The company did not say how great those charges will be.

"This quarter was more challenging than we anticipated. We compete in one of the world's most competitive industries, which is characterised by significant pricing pressures, shifts in technology and longer market acceptance time," Craig Benson, Cabletron's chairman and chief executive officer, said.

For its second quarter, ended August 31, Cabletron posted revenues of $370.6 million and net income of $14.6 million, or 9 cents per share.