In trying to summarize the analyst conference and general meeting, it's hard to be completely objective after so many excellent presentations and demonstrations, but I'll try.
Highlights from Alan's address to analysts:
* We're a different organization run by different people. Of the 16 on the management team, 12 are new, 5 brought in from the outside and the rest either promoted or maintained from within.
* We have a different portfolio. France Telecom is not part of G1 -- this is FT's national network and a major win. The contract with Argentina's Movicom holds more significance than appears on the surface due to BellSouth's involvement and the size of the markets they dominate. Toshiba affirms the strength of LMDS and with the 50/320 close to launch and the additions of Northchurch and TimeStep, IP-ATM convergence continues on course.
* We have a different product mix. TDM is down to 25% and WAN Packet at 75%, with ATM doubling annually.
* We're a different company financially with more than $1 billion in cash after acquisitions.
* We have a different propensity for doing deals. The relationship with Siemens has evolved into a distribution agreement.
* We're a different company in operations. 80% of the problems have been solved. We're running differently now.
Additional points:
* We've identified niches where we can dominate.
* Will concentrate on improving balance sheet.
* SAP will be turned on Nov. 1.
* Will complete IP with additional acquisitions. [700 to 800 engineers focused on IP now.]
* Will add distribution partners, including in the US.
* Growth in Europe up by a factor of 5.
* We're pursuing MCI [NN also being pursued. . . .]
* Pending SBC-Ameritech merger will add new opportunities.
Like any piece of literature whose worth is hidden between the lines, the benefit of attending an annual meeting comes in between the formal presentations, during those 3 and 4 minute conversations after a demo or the extended discussions over a glass of wine or cup of coffee at the end of a session. "What are your plans for targeting specific journalists?" "What's happening at MCI?" "What are you saving for Telecom in Geneva?" "When do you expect LMDS to reach 5% of revenues?" "What's the status at NextLink?" The questions pour out. An answer is half formed when someone interrupts and you later remember you never got what you wanted. Then you smile realizing you got more, only in a different form. Or an introduction is made and a conversation begun only to be cut off by someone's, "I want you to meet. . ." or "Have you seen. . .?"
At some point you have to stand back and try to piece it all together. If there was an over-riding tone after the AGM, it was one of relief combined with excitement. Relief that the company's well on its way to financial success and excitement that products and services are moving from fantasy to fact. The leadership team is not only in place but well along in creating the New Newbridge. [See today's press releases for proof.]
Newbridge is made up of people. Talented people. Every time I've attended a conference or show, I've met employees who've amazed me with their knowledge and ability to share it with a novice. To focus on one isn't fair, but if the company could find a way to clone Brian Jervis we could all fold our tents and go home. When it comes to understanding switching he's Mozart in a world of Saliari's. That's high praise as Saliari was no slouch.
From the president's office all the way through the ranks it's the people who make NN the company it is. I was especially anxious to meet Satjiv Chahil and he didn't disappoint. I knew he was talented but wasn't prepared for his sense of calm. I'm told he moves with great care and modulation. Besides reorganizing the entire marketing organization (see slides on webcast), he's optimizing every resource for maximum effect. As an example of targetted marketing, he developed a video to be played on every flight going to Geneva for Telecom '99. It's designed around the World Rugby Championship and features the DMDS solutions. He also hired a biplane to fly over a Cisco-hosted conference where NN was also present --- with a banner reading: " www.newbridge.com." Forbes and Business Week have full-page NN ads, again targeted at Telecom '99 attendees. It's been difficult to wait through long stretches of silence in between press releases, but Satjiv and Alan both believe they have to bring out contracts to back up product launches. It's the difference between telling and showing. You can talk about new products and services till the cows come home but if you don't have customers to support their verity, you're blowing hot air. When the Street puts you on probation, the rules are tough.
Earnings consistency will change the rules. Quarter by quarter they'll ease until NN's the new darling and unable to do wrong.
But I get ahead of the story . . .
Before I close, a warm thanks to all those who introduced themselves and made me feel welcome.
Pat
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