Pat,
You're incredible. Do you ever sleep? Your prior post was at 3:50AM<g>.
Fairly positive coverage of NN by Dow Jones et al.
June 2, 1998
Newbridge Reports Results
In Line With Analyst Forecasts
Dow Jones Newswires
Newbridge Networks Corp., a Canadian maker of networking gear, late
Tuesday reported a profit for its latest period, reversing a year-ago loss
despite a drop in sales.
For the fourth fiscal quarter ended April 30, Newbridge Networks reported
net income of $3.6 million Canadian dollars -- or $2.5 million -- or two cents
a diluted share, compared with a net loss of C$29.7 million, or 17 cents a
share, in the year-ago period.
The latest results include a charge of about C$26.4 million related to
purchased research and development in process and about C$2.6 million
related to the settlement of a securities class-action lawsuit. The
R&D-related charge was associated with the acquisition of Radnet Ltd.,
which was jointly acquired by Newbridge and Siemens AG during the third
quarter.
In the year-ago quarter, Newbridge reported a charge of C$96.9 million
associated with purchased research and development. The results were in
line with analysts' estimates. Sales, meanwhile, dipped 10% to C$395.2
million.
Newbridge said that, excluding onetime charges in the quarter, pro forma net
earnings for the fourth quarter were C$32 million.
Newbridge officials said analysts expect the company's wide-area network
packet business to grow by 50% to 60% next year.
"I think what we are producing is going to keep the analysts basically on
track with their estimates looking forward into next fiscal year," said Peter
Charbonneau, Newbridge's newly-appointed vice-chairman.
Mr. Charbonneau had been president and chief operating officer.
Newbridge named Alan Lutz to replace Mr. Charbonneau, effective
Tuesday. Mr. Lutz was president of Northern Telecom Ltd.'s switching
networks group.
Newbridge said order intake exceeded shipments in the fourth quarter, while
backlog was the highest recorded in the company's history.
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