Cabletron In A Tangle
Donald B. Reed likes to think of himself as a doer, not a talker. "Watch my feet, not my mouth," is a favorite saying of the new president and CEO of Cabletron Systems Inc. But three months after taking charge at the feisty kid brother of the networking industry, Reed seems to have his shoelaces tied together. On Dec. 2, Cabletron announced that profits for its quarter ended Nov. 30 would fall short of estimates--the second time in six months that Cabletron has missed its numbers. Reed will take a charge against pretax earnings of up to $30 million in Cabletron's fiscal fourth quarter, the company says. Cabletron stock is down more than 50% since Reed took over Sept. 1. Welcome to the corner office.
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