NOV 3, 1999, M2 Communications - 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 8cents to
10cents.
"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 executive 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.
@M2 COMMUNICATIONS DISCLAIMS ALL LIABILITY FOR INFORMATION PROVIDED
WITHIN M2 PRESSWIRE. DATA SUPPLIED BY NAMED PARTY/PARTIES.@
-0-
(C)1994-99 M2 COMMUNICATIONS LTD |
