Shares in Bay Networks Inc fell $3.126 to $27 after the maker of switches, hubs and routers said product changes depressed its third-quarter profits – figures, page five – earnings per share slid by 15 cents to 20 cents, far below forecasts of 36 cents, despite sales rising 47.7% to $521.7m; Although overall switching demand remained strong, as the company moved from a single Ethernet switch offering to multiple platform choices, demand for its Model 28000 switch product declined, Bay said, adding that customer expectations of the announcement of new capabilities for the System 5000 hub created overhang during the quarter.
