=DJ Newbridge/Rumors -2: 3Q Net Will Beat Estimates: Analyst
Rob MacLellan, analyst at CT Securities, said he has told clients that Newbridge will
post solid third-quarter results. Strong asynchronous transfer mode (ATM), digital
subscriber line (DSL) and wireless sales are the main reasons for the expected
improvement, he said. As well, he said the company has been successful in cutting its
costs.
The First Call/Thomson Financial mean estimate for Newbridge's third quarter, which
ends Jan. 31, is 12 cents a share. "I fully expect (Newbridge) to beat it," MacLellan
said.
MacLellan said sources have told him that the takeover of Newbridge will be for the
"total company," which means Newbridge wouldn't be looking to sell its DSL divsion. "The
only reason that a breakup would make sense would be if (Newbridge) was talking to a
potential buyer who said 'We have all the DSL equipment we need and we're not willing to
pay fair value for DSL,' " he said. "Logic would dictate spinning off the DSL business in
order to receive fair value, but the company is telling us that (the DSL rumor) isn't
true."
-Stuart Weinberg, Dow Jones Newswires, 416-306-2032
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