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Shares plunge as networking firm faces SEC probe

Cabletron spin-off sees stock down 61 per cent...
Written by Jon Bernstein, Contributor

Cabletron spin-off sees stock down 61 per cent...

Entrasys Networks, part of the company formerly known as Cabletron Systems, has delayed the announcement of its fourth quarter results while it is the subject of an investigation by the US financial authorities, the Securities and Exchange Commission. Shares closed last night at $4.10, down 61 per cent. Entrasys told analyst that it was postponing its earnings announcement so it could conduct a "rigorous review" of a $4m contract in the Asia-Pacific region. The networking firm was founded in August last year as a Cabletron spin-off. Cabletron which had struggled to compete with the likes of Cisco and Nortel in the data communications sector, ceased to exist as a public company on 6 August 2001.
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