STOCK WATCH - Cabletron

Cabletron Systems has issued a warning that profit for Q3 ended 30 November will not be as high as analysts expected. The networking company said it will only make about $335 million, compared with $360 million last year. Recently appointed Cabletron CEO Don Reed said the eight per cent dip was partly due to delayed government orders and weakness in some domestic segments. He said management did not have enough details to explain the poor forecast. Other industry sources have said the drop was a result of corporates shunning Cabletron's core hub products in favour of faster switches from its competitors. Final figures will be published on 22 December.