Revenues were not the problem. The integration of UB networks was the problem. So what we have here is a classic case of whether or not the market wants to look forward or backward. We know that margins are not high enough but at least NN is maintaining in a networking enviroment which has produced statements like this one from ASND:
ASCEND COMM INC said it expects several quarters of
unpredictable growth because of price reductions, consolidation
among Internet service providers and slower international demand.
Ascend also said it expects revenue growth of about 10%
sequentially from quarter to quarter for the next few quarters.
(Reuters 01:52 PM ET 11/03/97) For the full text story, see
infobeat.com
Personally I am not too concerned as NN got another upgrade on lowered expectations today. I mean I was expecting $2 a share next year. Revenues stagnant? Earnings only slightly higher? NN is still the best at what they do. Look to the future. Eventually it will pay off. I will check on your question to see if I can find any substantial evidence that anyone was expecting less before today. In the meantime remember how I feel about selling my CSCO a few years back after a disappointing quarter. Terrible. NN will be fine. Just show a little patience. Regards, Jeff
No changes that I can find. There will be I'm sure. Another buying opportunity? Perhaps. Here's the URL you should look at:
stocksmart.com
Also here is tonight's press release:
Monday November 3 8:12 PM EST
Company Press Release
Newbridge Networks Announces Preliminary Estimates of Second
Quarter Fiscal 1998 Results
KANATA, Ont., Nov. 3 /CNW-PRN/ - Newbridge Networks today announced preliminary estimates of financial results for
the second quarter of fiscal 1998, ended November 2, 1997. Revenue for the second quarter is expected to be approximately
equal to revenue of $435 million for the first quarter of fiscal 1998, which is more than 35% greater than revenue of $316
million for the second quarter of fiscal 1997. Earnings per share for the quarter are expected to be within 10% to 15% of the
first quarter fiscal 1998 earnings per share.
Revenue for the Company's time division multiplexer (TDM) business is expected to be approximately equal to TDM revenue
for the first quarter of fiscal 1998. Wide area network (WAN) packet revenue, made up of frame relay and asynchronous
transfer mode (ATM) systems, are expected to increase sequentially by approximately 15% compared with the previous
quarter.
The increase in WAN packet product revenue was driven principally by the MainStreetXpress 36170 Multiservices Switch,
which is expected to achieve record revenue, order intake and backlog. Revenue for this product is expected to increase by
approximately 50% sequentially. Order intake for the MainStreetXpress 36170 Multiservices Switch is expected to be
significantly greater than revenue in the quarter.
Enterprise networking revenue, comprising the VIVID switched routing system, the former UB Networks products, and
related services, was approximately $25 million lower than in the previous quarter. Sales of the VIVID MLS 500 switching
hub were below expectations because of delays in the development of certain key features and functionality. In addition, sales
of shared media hubs continued to decline, consistent with declines in the overall market for shared media hubs.
''We are disappointed in the results for the second quarter,'' said Peter Charbonneau, President and Chief Operating Officer,
Newbridge Networks. ''However, we are pleased with the performance of our TDM product line, which continues to
generate profitable returns for the Company, and our WAN packet business, which recorded another strong quarter, driven
by our ATM product platform, most notably the MainStreetXpress 36170 Multiservices Switch.
''Newbridge is strongly positioned in its core WAN business. The Company has built a broad and loyal customer base
throughout the world by delivering best of class, end-to-end networking solutions to carrier and corporate customers. Our
growth strategy continues to be to provide a comprehensive, seamless and 'evergreen' product line to enable our customers to
evolve and expand their offerings to include services such as advanced private line service, high speed LAN interconnection,
frame relay, native cell relay and Internet Protocol (IP) services. This strategy is proving increasingly successful, as more and
more of our customers are migrating to the Company's multiservices ATM platform.
''The Company's enterprise business did not meet our expectations for the quarter. The VIVID architecture will form the key
underpinning of our enterprise networking solution. The product is well positioned as the only standards-compliant, Layer 3
switching solution based on an ATM campus backbone fabric shipping today. The VIVID system represents a next generation
solution compared with conventional backbone routers and, clearly, the sales cycle is longer than that for a conventional router,
LAN switch, or other legacy networking product.
''We stated at the beginning of the second quarter that we would need a couple of quarters to demonstrate we can be
successful with our enterprise strategy. The Company recently appointed Jim Arseneault, a seasoned veteran of Newbridge
and the industry, to head up our new Enterprise Marketing and Solutions Group. Jim was formerly Vice President and General
Manager of the STN Business Unit at Newbridge and, in this position, was responsible for leading the Company's very
successful TDM business. Typically about one third of our TDM revenue has come from Fortune 1000 type corporate
customers, and as a result Jim is knowledgeable of these customers and experienced in the enterprise market space.
''Complementing the VIVID architecture will be products from the Company's MainStreet and MainStreetXpress product
families and products from the growing family of Newbridge Affiliate companies. Jim will take the lead in bringing a renewed
focus to the enterprise market based on a comprehensive offering of products. The Enterprise Marketing and Solutions
Group's initiatives will be complemented by our recently announced Carrier Scale Internetworking (CSI) strategy. CSI, which
is being developed by Newbridge and Siemens, in collaboration with 3Com, enables carriers to provide an end-to-end
solution to enterprise customers for differentiated, fully managed IP networking services.''
The preliminary revenue and earnings results in this news release are estimates and may change upon completion of the closing
cycle for the quarter. Final results for the quarter are scheduled to be released on November 25, 1997, at which time the
Company will provide additional analysis.
This news release may contain certain forward-looking statements that involve risks and uncertainties. Actual results may differ
materially from results indicated in any forward-looking statements. The Company cautions that, among other things, in view of
the rapid technological changes in the networking industry, if technologies or standards supported by the Company's products,
or common carrier services based on the Company's products become obsolete or fail to gain widespread commercial
acceptance, the Company's business may be adversely affected. Additional information identifying risks and uncertainties is
contained in the Company's Form 10-K annual report filed with the SEC.
Newbridge Networks (http://www.newbridge.com) is a global leader in ATM, frame relay and advanced private line
networking systems, according to independent research. The company designs, manufactures, markets and services a
comprehensive family of networking products and systems that delivers the power of multimedia communications solutions to
organizations in more than 100 countries throughout the world. Newbridge products are the choice of an expanding range of
customers which include the world's 200 largest telecommunications service providers, and over 10,000 corporations and
government organizations. The company has facilities in Canada, the United States, Latin America, Europe, the Middle East,
Africa, Asia and Australia. Newbridge Networks Corporation is a public company whose common shares are listed on the
Now York Stock Exchange (NN) in the United States and on The Toronto Stock Exchange (NNC) in Canada.
SOURCE Newbridge Networks Corporation
More news for referenced ticker symbols: NN, NNC., and related industries: computer. |
