Bay Networks Inc is boasting that its current first quarter will surpass its expectations. Halfway through its first quarter, Bay says it has had strong sales across its product lines, according to chief financial officer David Rynne. We have some products in the switching area that are doing particularly well,” said Rynne. Last quarter we did better in shared media than we had expected going into the quarter and that seems to be continuing, and we’re doing fine in routing and remote access as well,” he said. By way of an example, Rynne said that the company had raised production targets twice during the quarter to match demand for its BayStack 350 Autosense ethernet switch released earlier this year, presumably this is not meant to be a reflection on the company’s previous low estimates. The growth in demand is clearly big news for Bay. The company recently reported virtually flat fourth quarter and end of year figures at a time where its major networking rivals, Cisco Systems Inc and 3Com Corp have reported last quarter revenues up 35.2% and 25.7% respectively. Bay says the good start to its first seven weeks in its financial year will not see it modifing targets for the full year yet. We hope it’s fundamental but it’s too early to call,” said Rynne. However, at least one Wall Street firm has been impressed. Salomon Brothers upgraded Bay Networks to buy from hold, citing the company’s sales momentum.
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