11/24/98 Dow Jones News Serv. 18:40:00
Dow Jones News Service
Copyright (c) 1998, Dow Jones & Company, Inc.
Tuesday, November 24, 1998
Newbridge -Outlook -2: 2Q Results Meet Analyst Expectations
Newbridge Networks Corp. (NN) held the conference call following the release
of its second-quarter financial results, which were in line with expectations.
As reported, Newbridge had net income of C$53.3 million in the second quarter
ended Nov. 1, which included a C$128.3 million gain and a C$61.5 million
writedown. Pro forma net income for the quarter, excluding the items, was C$48
million. Pro forma diluted earnings per share excluding items amounted to 18
U.S. cents, according to U.S. generally accepted accounting principles, which
was in line with the First Call estimate.
Commenting on the earnings, Alan Lutz, Newbridge's president and chief
executive, said they demonstrate that the company is making strides at
fullfilling its objectives of operating the business efficiently and generating
internal growth.
Lutz also hinted that the company is working on a deal to sell its wireless
product to a U.S. company. Again, he declined to provide specific details.
Lutz also declined to put value on its pact to supply network infrastructure
to Cable & Wireless PLC (CWP). He did say it would run into the "hundreds of
millions of dollars" over the next five years. Newbridge announced the deal
earlier Tuesday.
Lutz said the company's marketing alliance with Germany's Siemens AG (G.SIE)
has been "rejuvenated," and the two companies plan to broaden the number of
products they currently offer.
There had been talk that the alliance was unravelling because of personnel
conflicts and concerns about sales.
(END) DOW JONES NEWS 11-24-98
06:40 PM
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