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Technology Stocks : Newbridge Networks

NN 11.97

+5.3%

3:59 PM EST

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To: pat mudge who wrote (3401)	2/26/1998 9:19:00 PM
From: Mark R	Read Replies (1) of 18016

It seems to me that NN is just not able to run the business very profitably with increases in ATM and decreases in TDM. It now appears they won't get anything from UB (except a black eye)and upsides in new ATM deals don't look like they will grow earnings significantly (only revenues). But..... ....the revenue line is terrible. They are not growing sales enough and that has nothing to do with UB. They only expected 7% growth in TDM....it's not supposed to grow the top line! So...revenues bad, profits low, write offs large, new business not picking up the slack,and expense line grows like a weed, still! Three things must happen to really move this stock...(up) 1) Asian flu must end to revive developing countries expenditures on NN's high profit products. 2) They need to sell (and ship) some big numbers in 36170 to get some economies and momentum for the top line. 3) Some serious work needs to be done on that expense line now that TDM doesn't cover it and UB can't be the scapegoat. And just think, they laid off more UBr's in this Qtr instead of last. What other charges can we expect this quarter? I wanted to buy at 17us but now I am scaring myself! a view from the bench Imo Mark

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