Cabletron Systems Splitting Core Business Into Four Companies

Cabletron Systems (CS Quote) said it plans to reorganize its core business into four independent operating companies in order to better focus on high-growth areas of the communications market. The new companies -- Riverstone Networks, Enterasys Networks, Global Network Technology Services and Aprisma Management Technologies -- will focus on service provider, enterprise electronic business, professional services and infrastructure management, the company said. Cabletron said the four units eventually will be separate, publicly traded companies.

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As reported earlier, Dell (DELL Quote) reported fourth-quarter earnings of 16 cents a share, a penny ahead of the revised 29-analyst estimate and the year-ago earnings. The consensus estimate was lowered from 21 cents a share, excluding the gain, following Dell's Jan. 26 announcement that it expected to report fourth quarter net income of about 16 cents a share, including an investment gain of 1 cent a share.

Dell said its profit growth was slowed by parts shortages and a sales slowdown tied to Y2K fears. Net income was $436 million, compared with $425 million in the year-ago period. ...