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

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To: telecomguy who wrote (690)2/25/2000 2:00:00 PM
From: Francois Lavoie  Read Replies (1) of 792
 
Crosskeys does have agreements with LU & NT, and Resolve software supports Cisco. Add ALA, NN and Siemens to that.
I'll dig off the press releases if someone doesn't do it before me...

Here's a release from the Citizen:

CrossKeys expects boost from Alcatel-Newbridge deal
Bert Hill
The Ottawa Citizen

CrossKeys Systems of Kanata expects to get a lift from Alcatel SA, the French telecommunications giant that is buying Newbridge Networks in a $7.1-billion takeover.

CrossKeys, 20 per cent owned by Newbridge, said its systems-management software will be asset as Alcatel pursues telecommunications business in North America, particularly in the service-provider market.

President Ian McLaren said the deal presents "a tremendous opportunity" for his company.

CrossKeys is on the road to recovery from disappointing financial results last year.

He said CrossKeys products will help telecommunication carriers link and manage their systems.

"We now have a business relationship with a technology, sales and marketing force at Alcatel that today has become one of the world's top three architects of Internet infrastructure."

CrossKeys already does business with Alcatel, providing software that allows Alcatel and Newbridge technology to work together.

Krish Prabhu, chief operating officer of Alcatel Telecom, said: "CrossKeys products extend the value of (Newbridge and Alcatel) systems to multiple vendors and technologies."

Both Newbridge and Alcatel were hit hard by investors Wednesday after announcing the takeover but regained a bit of ground yesterday.

Newbridge stock rose 55 cents to $48.55; Alcatel rose 1/16 to $44. Crosskeys stock rose $1.20 to $13.90 yesterday.

The lack of enthusiasm for the merger partners suggests that investors are unhappy with the price, that Newbridge isn't getting more for its technology, and that Alcatel is paying too much for a company that has been out of favour.

Patrick Houghton, an analyst with Sutro & Co. in San Francisco, cut his recommendation on Newbridge from "buy" to "hold" yesterday.

At a trade show in Hanover, Germany, yesterday, Newbridge president Pearse Flynn said a new Alcatel division based in Kanata aims to double sales to $5 billion over the next two years.

He was reiterating Alcatel's plans to combine Newbridge's new networking gear with powerful Alcatel access equipment in a fresh assault on North American and world markets.

"We expect to take huge market share in the U.S.," Mr. Flynn said.
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