Bay Networks Inc, the Santa Clara-based networking hardware company, beat Wall Street expectations yesterday with its first quarter results, even after an unexpected charge. It reported net income up to $41.3m, or $0.19 after a $7.4m charge for in-process research and development from last year’s acquisition of NetICS Inc, from $5.6m, or $0.03 last year, which included a similar $42.6m hit. Without the charge this time, the company would have reported net income of $48.7, or $0.22 per share. Revenues in the quarter were up 15.0% at $601.3m. First Call’s average estimate was for $0.18 per share. Bay said the additional charge was based on revenue milestones reached during the quarter. Back in August Bay bragged of beating its revenue targets some seven weeks into the quarter. Bay had cash and equivalents of $826.6m at the quarter’s end.
