Profits fall for Bay Networks

Profits fall for Bay Networks
Tom Foremski
Network equipment maker Bay Networks has warned that its third quarter fiscal sales and profits will be lower than expected with sales about ten per cent lower than its second quarter.
“In recent years, revenue in the March quarter has been below the level achieved in the December quarter. We are disappointed that we did not break this historical pattern.,” said Bay CEO Dave House.
He blamed low demand across several product areas and lower profit margins due to aggressive price cutting on Ethernet switches. House predicted that market conditions will continue to be competitive due to a price war in the low end of the market but he is optimistic on long term prospects for the company.

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