View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
January 16, 1997updated 05 Sep 2016 12:58pm

WITH SALES BEGINNING TO SLIDE, BAY LOOKS LIKE A SITTING DUCK

By CBR Staff Writer

When you see the mess into which Bay Networks Inc has got itself when all the other big communications equipment manufacturers are prospering mightily, the one word that springs to mind is Compaq. For its next trick, Compaq Computer Corp wants to be the industry number two by 2000, and it can only get past Hewlett-Packard Co by buying other companies. Digital Equipment Corp would supply the bulk, but Bay Networks would add over $2bn of finesse to Compaq’s efforts to turn the networking equipment business on its head by forcing margins down closer to personal computer levels. Bay is in such a mess that where the likes of 3Com Corp and Cisco Systems Inc are seeing their sales soar year-on-year, Bay’s fiscal second-quarter earnings were well below analysts’ expectations and sales fell 5% from a year earlier. The Santa Clara company said its per-share earnings before special factors fell to 10 cents, an embarrassing 13 cents below the consensus estimate of analysts surveyed by First Call Inc – although most of those analysts must clearly have been asleep at the wheel. Pretax charges totaled $207.2m for acquisitions, consolidation of product lines and related inventory, and reduction of excess office space. Dave House, hired from Intel in October to turn Bay around, is still putting together his management team, which makes this an ideal time for a predator to strike.

Content from our partners
Scan and deliver
GenAI cybersecurity: "A super-human analyst, with a brain the size of a planet."
Cloud, AI, and cyber security – highlights from DTX Manchester

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU