Newbridge Networks Announces Preliminary Estimates of
Financial Results for Second Quarter Fiscal 2000
KANATA, ONTARIO--Newbridge Networks (NYSE: NN; TSE: NNC) today
announced preliminary estimates of financial results for the
second quarter of fiscal 2000, which ended October 31, 1999. Based
on current information, revenue for the second quarter is expected
to be approximately $480 million. Earnings per share for the
quarter, excluding the effect of items related to acquisitions and
non-recurring items, are expected to be US 8 cents to 10 cents.
"The quarter was a disappointment," said Terence Matthews,
chairman and chief executive officer, Newbridge Networks. "The
Company continues to perform well in Europe. Revenue from Europe
in the fiscal second quarter was almost 40 percent higher than in
the second quarter of fiscal 1999; however, revenue from North
America was essentially flat year-over-year.
"I have accepted the resignation of Alan Lutz, the Company's
president and chief operating officer. Pearse Flynn, who has
spearheaded the significant success of Newbridge in Europe over
the past year as the Company's executive vice president and
general manager for Europe, Middle East and Africa, has been
appointed president and chief operating officer.
"Newbridge has a number of important strengths. These include a
strong cash balance of almost $900 million; a broad and
long-standing customer base of over 350 of the world's largest
carriers in more than 100 countries throughout the world; a world
class R&D organization comprising some 2,000 experienced engineers
and designers; and market leading positions in key technologies
such as ATM+IP switched routing and broadband wireless. Despite
the setback this quarter, the Company's ATM+IP - or WAN (wide area
network) packet - switching revenues were up approximately 40
percent compared with a year ago. WAN packet order intake
increased by approximately 20 percent on a sequential basis.
"I am working with the senior team of Newbridge to finalize an
action plan that leverages these core strengths of the Company and
addresses issues that require attention, primarily sales
effectiveness and our ability to scale customer-facing resources.
We will discuss this plan in further detail on the November 18th
conference call."
Newbridge Networks designs, manufactures, markets and services
wide area networking solutions for Internet service providers;
local, long-distance, and wireless communications companies; cable
television carriers; and corporate customers in more than 100
countries. The Company leverages its relationship with a growing
family of Newbridge Affiliate companies and strategic alliances
with numerous other networking companies to deliver complete,
end-to-end solutions. Newbridge customers include the world's 350
largest telecommunications service providers and more than 10,000
corporations, government organizations and other institutions.
Founded in 1986, the Company employs more than 6,000 people on six
continents. News and information are available at
www.newbridge.com.
Newbridge and logo are registered trademarks of Newbridge Networks
Corporation.
We invite you to a conference call to discuss the Company's
preliminary estimates of results for second quarter, fiscal year
2000.
The conference call is scheduled to begin on November 2nd at 8:30
a.m. (Eastern Standard Time).
Conference Call
* North America: 1-800-553-2350
* International: 1-303-267-1000
* Please call in 10 minutes prior to the start of the call
Instant Replay
* North America:1-800-625-5288, passcode 617922
* International: 1-303-804-1855, passcode 617922
* Available until 9:00 a.m. on November 4th
-30- |
