SECURITIES AND EXCHANGE COMMISSION
Washington , D.C. 20549
Form 10-QA
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended August 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 1-10228
CABLETRON SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
Delaware 04-2797263
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) identification no.)
35 Industrial Way, Rochester, New Hampshire 03867
(Address of principal executive offices and Zip Code)
Registrant's telephone number, including area code: (603) 332-9400
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
YES - X NO - ___
As of September 30, 1997 there were 157,985,255 shares of the Registrant's
common stock outstanding.
This document contains 3 pages
<PAGE>
CABLETRON SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Ended
August 31,
1997 1996
---- ----
Cash flows from operating activities:
Net income ......................................... $116,411 $ 94,043
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization .................. 34,876 25,221
Provision for losses on accounts
receivable .................................. (1,202) 2,660
Deferred taxes ................................. (8,209) (15,594)
Gain/loss on disposal of property .............. (489) 80
Changes in assets and liabilities:
Accounts receivable ......................... (74,938) (46,914)
Inventories ................................. (77,008) (3,850)
Prepaid expenses and other assets ........... (6,564) (7,548)
Accounts payable and accrued expenses ....... 29,491 34,168
Income taxes payable ........................ (8,918) (2,080)
-------- --------
Net cash provided by operating activities ....... 3,450 80,186
-------- --------
Cash flows from investing activities:
Capital expenditures ............................... (46,517) (52,277)
Purchase of available-for-sale securities .......... (72,884) (95,640)
Purchase of held-to-maturity securities ............ (27,228) (160,985)
Maturities of marketable securities ................ 105,340 269,914
-------- --------
Net cash used in investing activities ........... (41,289) (38,988)
-------- --------
Cash flows from financing activities:
Common stock issued to employee stock
purchase plan ..................................... 3,311 3,019
Net proceeds from sale of stock
(Network Express/ZeitNet) .......................... --- 8,562
Repayment of notes from stockholders ............... --- (2,595)
Proceeds from stock option exercise ................ 13,215 6,719
Repurchases of common stock ........................ --- 544
-------- --------
Net cash provided by financing activities ....... 16,526 16,249
-------- --------
Effect of exchange rate changes on cash ............... 408 76
-------- --------
Net increase (decrease) in cash and cash
equivalents ........................................... (20,905) 57,523
Cash and cash equivalents, beginning of period ........ 214,828 106,101
-------- -------
Cash and cash equivalents, end of period .............. $193,923 $163,624
======== ========
Cash paid during the year for:
Income taxes ....................................... $ 40,151 $ 66,024
======== ========
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CABLETRON SYSTEMS, INC.
-----------------------
(Registrant)
November 21, 1997 /s/ Craig R. Benson
- ---------------- ------------------------------------
Date Craig R. Benson
Chairman of the Board and Treasurer
November 21, 1997 /s/ David J. Kirkpatrick
- ---------------- ------------------------------------
Date David J. Kirkpatrick
Director of Finance and Chief
Financial Officer
