Q4 2001 Pro Forma Net Income Up 53.7% and Revenue Increases 10% from Prior Quarter
NEWBURY, UK March 29, 2001 — Cabletron Systems (NYSE: CS) a holding company for leading networking and telecommunications companies, today reported its fourth quarter results of fiscal year 2001 for the period ending March 3, 2001.
“We are very pleased with our results for the fourth quarter,” said Piyush Patel, CEO and Chairman of Cabletron Systems. “Overall, the company’s growth was driven by continued demand for its innovative products and solutions, along with strong business in the international market.”
The combined revenues of the four subsidiaries for the fourth quarter of fiscal 2001 were $291 million compared with $265 million in the prior quarter and $203.4 million in the fourth quarter of fiscal 2000. This represents a sequential quarterly growth rate of 10%, or an annualised growth rate of 46%.”
On a pro forma basis, Cabletron’s subsidiary companies net income increased to $10.7 million, or $0.06 per diluted common, compared with pro forma net income of $6.9 million or $0.04 per diluted common share, in the prior quarter. This compares to Wall Street’s estimate of $0.05 per share for the fourth quarter of fiscal 2001. Cabletron has met or exceeded Wall Street’s expectations for the ninth consecutive quarter.
Net revenues for the year ended March 3, 2001 were $1,015.8 million, compared with $763.7 million for the year ended February 29, 2000. On a pro forma basis, net income for the four subsidiaries was $7.3 million or $0.04 per diluted common share during the year ended March 3, 2001. This compares with pro forma net income of $67.3 million or $0.38 per diluted common share during the year ended February 29, 2000. Net loss to common stockholders was $627.3 million or $3.40 per diluted common share during the year ended March 3, 2001, compared with net income to common stockholders of $464.3 million or $2.46 per diluted common share during 2000.
Enterasys Networks is a provider of enterprise network solutions required to serve emerging bandwidth-intensive enterprise and e-business applications, including converged voice and video, distributed supply chain management, and e-commerce. Enterasys solutions are deployed in some of the world’s most complex enterprise networks.
Enterasys had revenues of $221.1 million in the quarter, compared with revenues of $205.8 million in Q3. This represents a sequential quarterly growth rate of approximately 7.4%. This result compares to $177.7 million in Q4 of fiscal 2000, reflecting a year-over-year growth rate of 24.4%.
Key customer wins during the quarter included: New customers during the quarter include Toyota Canada, National Aerospace and Technical Institute of Spain, the German Federal Government, Network Plus, University Medical Center (UNLV), National Space Agency of Japan, Greatwall Broadband, Tinshan Telecom, the Brazilian Justice Institute, the City of Yoksuka Japan, Toshiba American Electronics, and Ferrari.
Building on its Layer 3 leadership, Enterasys launched the X-Pedition ER16 in Q4. This high performance switch router provides four times the Gigabit routing capacity of its other offerings, and provides a comprehensive set of advanced application services critical for e-business.
Enterasys also unveiled the industry’s first User Personalised Network This new system understands the relationships between the users of a network system and their business roles in an organisation, and leverages that understanding to dynamically provide secure, personalized access to IT services.
Enterasys expanded Secure Harbour, the industry’s first holistic security solution, with support the emerging IEEE 802.1X industry standard.
Riverstone Networks (NASDAQ: RSTN) is a leading provider of metropolitan area Internet infrastructure solutions focused on converting commodity bandwidth into profitable services for carriers and service providers.
Riverstone announced Q4 FY01 results on March 22, 2001. For more information on Riverstone, a copy of their press release or to listen to a replay of their conference call, visit their web site at: www.riverstonenet.com.
About Cabletron Systems
Cabletron Systems, based in Rochester, NH, was founded in 1983. Initially a provider of world-class networking solutions, Cabletron announced its corporate transformation to a holding company in 2000. Today, Cabletron is a holding company for four of the most innovative, customer-focused organizations in the telecommunications and networking industry: Aprisma Management Technologies, Enterasys Networks, GlobalNetwork Technology Services, and Riverstone Networks. For more information on Cabletron Systems, visit www.cabletron.com.
This release may contain projections or other forward-looking statements regarding the future financial performance of the Company or other future events and circumstances. Such forward-looking statements by their nature involve risks and uncertainties, and actual results or events could differ materially. Risks that could cause actual events or results to differ materially from those in described in the projections or forward-looking statements include business disruption and market perceptions associated with the Company's plan to transform its business into four independent operating subsidiaries, as well as risks associated with competitive conditions, pricing and margin pressures as a result of product shifts and changes in market dynamics, greater use of, and expenses associate with, distributors and resellers, limited management resources, the Company's acquisition strategy, volatility in the stock markets and market valuations being placed on communications infrast!
ructure and service companies, technological changes, intellectual property protection and related issues, dependence on suppliers and contract manufacturers, and potential volatility in operating results, among others. For a more detailed discussion of these and other risks and uncertainties related to the company's business, please refer to the Company’s most recent filings with the Securities and Exchange Commission, including the Company’s most recent annual report on Form 10-K, and the Company's other recent reports on Form10-Q and Form 8-K.
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