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Technology Stocks : CrossKeys Systems Corp [CKEY and CKY/TSE]

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To: uel_Dave who wrote (550)	9/23/1999 6:44:00 AM
From: Glenn McDougall	of 792

Newbridge wins $500m in contracts Jill Vardy Financial Post OTTAWA - Newbridge Networks Corp. will announce today $500-million (US) worth of new contracts for its telecommunications equipment. The deal will give Alan Lutz, Newbridge's president and chief operating officer, some good news to bring to shareholders at the company's annual meeting today. He'll tell analysts and shareholders that Newbridge has signed a deal to sell "hundreds" of its asynchronous transfer mode (ATM) high-speed telecommunications switches to France Telecom. According to market-watchers, the market for ATM equipment appears to be growing by 50% a year. But Newbridge's ATM business grew by slightly more than 100%, Mr. Lutz says. The Movicom telecommunications company of Argentina has also picked Newbridge to supply communications network switches worth about $50-million. Movicom is an affiliate of U.S. telephone giant Bell South International. "This is the first of many deals we'll see with BSI," Mr. Lutz said late yesterday. Newbridge is also putting the final touches on a deal with Toshiba Corp. to co-operate on developing local multipoint distribution service (LMDS) products, which send signals over wireless networks at very high frequencies. The deal will see Toshiba purchase $350-million (US) of Newbridge LMDS equipment over five years. "A year ago I said this LMDS could grow to be a $1-billion-a-year business. Frankly, I think there were a lot of skeptics about that. We are very excited about this world opportunity and there will be many more announcements flowing regarding wins in this field. This one's hot," Mr. Lutz said. Newbridge had net earnings of $47-million in the quarter ended Aug. 1 on record revenue of $495-million. The company will outline for analysts this morning more details on its strategy for Internet Protocol (IP) products, a hot growth area for telecommunications equipment suppliers. It will also likely face questions this afternoon from shareholders about recurring rumours the company is about to be sold to a larger telecommunications firm -- rumours that Newbridge executives have repeatedly denied.

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