Wednesday, December 9, 1998
Newbridge heads south
By SUSAN TAYLOR, Ottawa Sun
Newbridge Networks won a deal yesterday to supply equipment for South America's first high-speed ATM network and another to expand Columbian networks.
The value of the deals weren't disclosed, but the markets did not respond favourably. The stock fell 60cents on the TSE to close at $46 and 25cents on the NYSE to end at $29.88.
"They're in the realm of 'nice to have' ones, but don't change anyone's opinion of them (Newbridge)," said Mark Lucey, an analyst and managing director at Kearns Capital Ltd.
The deal with Impsat in Columbia is for time division multiplexer equipment, an older line of Newbridge gear. Impsat plans to invest $3 billion in the next five years in its Latin American operations.
Newbridge's sale to the Cooperative de Telecommunicaciones de Santa Cruz, a Bolivian telecommunications firm, is for newer asynchronous mode transfer technology.
The network will supply customers -- including financial and health care institutions, other telcos, and retail and utility firms -- access to voice and data services they can deliver to more than 1 million Santa Cruz residents.
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