Cabletron Warns of 3rd-Quarter Loss

Cabletron Systems Inc., the No. 3 computer networking company, warned it will lose about 10 cents a share in its fiscal third quarter because stiff competition forced it to cut prices. It was expected to earn 11 cents a share, based on the average estimate of analysts surveyed by First Call Corp. Cabletron said revenue will range from $330 million to $340 million in the quarter, compared with $331.8 million a year ago. Cabletron has struggled to compete with rivals Cisco Systems Inc. and 3Com Corp., which introduced more advanced equipment for linking computers to the Internet. Its shares fell $3.50 to close at $10.75 on the New York Stock Exchange. The Rochester, N.H.-based company made the announcement after the markets closed.