Enterasys Reports Q4 Revenue of $121 Million

Enterasys Networks reported Q4 revenue of $121.2 million, compared with net revenue of $122.7 million for Q3 2002. Net loss for the quarter was $30.6 million, or $0.15 per share. The company generated $34.5 million of cash from its Q4 operating activities, and ended fiscal year 2002 with $313.3 million of cash and marketable securities. Gross margin for the quarter was 35%, compared to a gross margin of 48% in Q3 2002. The fourth quarter decline in gross margin was due to a $17.6 million provision related to excess and obsolete inventory, which reduced gross margin by approximately 14.5%. William K. O'Brien, the company's CEO, said the focus in 2002 was on rightsizing the business, but that 2003 goals target modest revenue growth, market share gains, sustainable cash flow from operations, and profitability in Q4.
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