Cabletron Posts Unexpected 4th-Quarter Profit

Cabletron Systems Inc. reported an unexpected profit for the fiscal fourth quarter as the computer networking company’s growth in sales of new equipment offset lower sales of its older products. Cabletron reported earnings before a charge of $2.5 million, or 1 cent a share, contrasted with a loss before charges of $6.3 million, or 4 cents, a year ago. The Rochester, N.H.-based company was expected to lose 1 cent a share, according to First Call Corp. Sales rose 11% to $345.1 million.

Cabletron also said it will sell its manufacturing division to Canada’s Celestica Inc., which makes Cabletron’s computer networking products. It was not immediately clear how many of Cabletron’s 6,900 jobs would be lost. Cabletron said the move would save it $50 million in the first year. Cabletron shares rose 31 cents to close at $10 on the New York Stock Exchange. The company reported results after the close of regular U.S. trading.