Newbridge Networks Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Newbridge Networks

NN 14.52

+6.1%

Dec 3 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: pat mudge who wrote (4869)	6/3/1998 5:04:00 PM
From: Bron-y-aur	of 18016

summary from briefing.com this morning (nothing new here but is a concise explanation of why this short term PAIN) NEWBRIDGE NETWORKS LTD. (NN) 26 1/16 -3 15/16. While most computer networking stocks are enjoying a plus day in the market, shares of this developer of a desktop-to-desktop family of networking products are not part of the rally after the company reported Q4 results that were in line with market expectations. Though such news should be viewed as a positive given recent disappointing results Newbridge had reported, apparently the company's earnings of $0.13 a share are being compared to whisper numbers that called for a profit of a couple of cents higher. Revenues for the period rose to $395 mln, a 10% increase on a sequential basis, but 10% lower than in the year-ago Q4 period. In addition, the company suggested that expenses in the new fiscal year are likely to rise above the level Wall Street had anticipated as competition in the asynchronous transfer mode market intensifies, particularly as large players like Lucent Technologies (LU 70 1/2 -1 3/16) make their presence more pronounced. This all means that Newbridge will continue to experience pricing pressures in its main market, which will put additional pressure on gross margins. Last night's report and today's stock activity has not prompted analysts to retreat from continuing to recommend the stock, however, as Cowen & Co. has reiterated its "strong buy" rating on the stock, while Wheat First Union also continues to rate the stock a "buy." It has done little good as shares of Newbridge are giving back all of yesterday's pre-earnings release gains and more as investors feel that the planned recovery in earnings visibility is still too far into the future.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next