Another version of the release. Silly question here, but has it hit the Dow Jones yet?
TORONTO, Aug 25 (Reuters) - Computer networking firm
Newbridge Networks Corp. <NNC.TO> <NN.N> posted earnings on
Tuesday that equaled street predictions and unveiled a US$300
million, 3-year deal with U.S.-based telecommunications firm
SBC Communications Inc. <SBC.N>
"We think we've made the first step in transition," said
Alan Lutz, who earlier this year took over as president and
chief operating officer of the company, based near Ottawa. "We
like to think we've turned the corner in providing dependable
results."
The company was on the mark for its fourth quarter
earnings, finished April 30, but had previously posted three
straight quarters of disappointing results.
Profit for the first quarter of fiscal 1999, ended August
2, reached C$35.5 million or C$0.20 a share compared to 1997
earnings of C$64.4 million or C$0.36 a share for the
three-month period ended August 3.
In U.S. dollars, Newbridge earned $0.14 versus $0.26.
According to New York-based research firm IBES, analysts had
forecast, on average, U.S. earnings of $0.145 a share.
The results were posted after equities trading ceased in
North America. Before the numbers, shares in Newbridge Networks
slipped C$0.30 to C$36.30 on the Toronto Stock Exchange. In New
York, the stock dipped US$0.06 to US$23.56.
Gurinder Parhar, analyst at brokerage HSBC James Capel,
praised Newbridge's results. "I'm happy that they met the
numbers," he said. "The stock's going to run (once markets
reopen.)"
The deal with SBC, which will see full details revealed on
Wednesday, proved to be a bonus, Parhar added. "While it's not
a billion dollars, it ensures future growth in the switching
portfolio."
Both Lutz and founder, Chairman and Chief Executive Terence
Matthews, who spoke to analysts on a conference call, were also
enthusiastic about the possibilities for future contracts in
another product, technology for local multipoint communications
systems, or LMCS.
Last week Newbridge announced itwas chosen as suppliers to
help Canadian wireless broadband firms MaxLink Communications
Inc., and WIC Connexus, part of WIC Western International
Communications Ltd. <WICb.TO>, build wireless networks. The two
would spend up to C$900 million in the next four years.
Matthews noted that the market for LMCS was largely
untapped world-wide.
($1 = $1.55 Canadian)
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REUTERS
Rtr 20:51 08-25-98
Copyright 1998, Reuters News Service |
