Time and again there announcements which had little of real substance, according to the (frequently correct) critics. The word "hype" was frequently used.
By way of warning, let me remind you I've been referred to as a "buzz-saw."
Could you supply examples of these announcements? Those I read on their website seem substantial. As for critics being "frequently correct," I have to take exception. Most write to deadlines and at best have half their facts straight. At worst form totally false conclusions.
Then came the fall from grace. Perhaps the company has learned and decided to wait until the wolf is well and truly among the sheep, and will then let others try to raise the alarm.
I don't know what you're saying --- that they're releasing news or that they aren't --- you can't have it both ways.
Many of the news items we've scratched up have not come from Newbridge itself, and most of them will only begin to impact revenues in Q3 and Q4, so there is still a long time before we see their real bite.
If current news won't impact this earnings, let's go back a few months and find some that will. Moving backwards from January, I find the following:
HERNDON, Virginia and BOCA RATON, Florida, January 12, 1998 - TeleHub Network Services has selected the industry-leading Siemens / Newbridge MainStreetXpress 36170 Multiservices Switch and MainStreetXpress 46020 Network Manager for its nationwide asynchronous transfer mode (ATM)-based multiservices network. TeleHub's broadband network will be the first network optimized to deliver switched voice, data and video services over a multiservices platform.
ATLANTA, and HERNDON,VA, January 8, 1998 - MCI announced today that it has renewed its strategic marketing alliance with Newbridge Networks for another two years. The agreement enables MCI and Newbridge Networks representatives to jointly call on customers to offer them customized networking solutions. The alliance follows on the recent decision by MCI in selecting the Siemens/Newbridge MainStreetXpress switch for its nationwide Asynchronous Transfer Mode network.
MUNICH, Germany, KANATA, Canada, December 1, 1997 - The Public Communication Networks Group of Siemens AG and Newbridge Networks today announced that they have jointly acquired RADNet Ltd., an Israeli developer and manufacturer of access switches for asynchronous transfer mode (ATM) networks, for US$75 million. Under the terms of the agreement, Siemens will control 50.1% of the company, while Newbridge Networks will own 49.9%.
KANATA, Ontario, November 13, 1997 - Newbridge Networks today announced it has been selected to supply the networking equipment that will form the main backbone used to connect all voice, video and data systems at Kuala Lumpur International Airport (KLIA), Malaysia's new airport scheduled to open in January 1998. The airport will be one of the largest and most advanced in the world. The contract was awarded through a three- company consortium comprising Sapura Group of Malaysia, Tomen Corporation of Japan and Harris Corporation of the United States (STH).
KANATA, Ontario, November 11, 1997 - Newbridge Networks today announced it has been selected to supply and install a comprehensive, end-to-end multiservices network to Nauchny Center, a major scientific, research and manufacturing organization based in Zelenograd, near Moscow, in the Russian Federation. The estimated value of this contract is US$25 million.
KANATA, Ontario, October 23, 1997 - Stentor, an alliance of Canada's leading telecommunications service providers, has selected the Siemens / Newbridge MainStreetXpressT 48020 MultiNetwork Service Controller (MNSC) to manage Canada's nationwide asynchronous transfer mode (ATM) backbone network built upon the industry-leading MainStreetXpress 36170 Multiservices Switch. The national ATM backbone network will deliver a comprehensive and growing range of services to customers from a single, broadband core network.
KANATA, Ontario, October 2, 1997 -- Oleane, the leading Internet Service Provider (ISP) to the corporate market in France, has selected the full range of Newbridger networking systems to optimize its existing network and to build a scalable Internet services network throughout France. Oleane, which is 20 % owned by WorldCom Inc., provides Internet connection services and extranet solutions to more than 2,000 corporate customers in France.
KANATA, Ontario, September 22, 1997 - MCI Communications has selected the industry-leading Siemens / Newbridge MainStreetXpress 36170 Multiservices Switch to serve as the backbone switch for its nationwide asynchronous transfer mode (ATM) network. With this contract, MCI extends its leadership among the major service providers throughout the world by implementing a strategy for a single, broadband ATM core network that enables it to seamlessly deliver a comprehensive range of services to its customers from this single network infrastructure.
MCI, the nation's premier provider of high-speed data and Internet service, will deploy MainStreetXpress switches to deliver key network-based services, including: vBNS, the National Science Foundation network which also supports Internet2; commercial backbone traffic; and MCI's Switched Multi-Megabit Data Services (SMDS).
Telecom New Zealand Selects Siemens / Newbridge Alliance for National Asynchronous Transfer Mode Network
KANATA, Canada and MUNICH, Germany, September 18, 1997 -- Siemens AG and Newbridge Networks today announced that Telecom New Zealand has selected the MainStreetXpress asynchronous transfer mode (ATM) architecture to construct a national network. The five-year, multi-million dollar supply agreement covers the entire MainStreetXpress product line, the industry's most comprehensive ATM suite of products, including the MainStreetXpress 36170 Multiservices Switch and the MainStreetXpress 36190 Core Services Switch.
Herndon, Virginia, September 10, 1997 - GoodNet, an Internet Service Provider with National Service Provider (NSP) status, has signed a multi-million dollar contract with Newbridge Networks, a global market leader in wide area network (WAN) asynchronous transfer mode (ATM) equipment. GoodNet will deploy the Siemens / Newbridge MainStreetXpress 36170 Multiservices Switch and the MainStreetXpress 46020 Network Manager to expand and upgrade its nationwide ATM Internet backbone. GoodNet's rapidly expanding network now extends to over 24 American cities, providing fast, reliable Internet connectivity for Internet Service Providers (ISPs) and businesses.
KANATA, Canada, MUNICH, Germany, September 3, 1997 -- BT has selected GPT and the Siemens / Newbridge Alliance as the supplier for its new Broadband Multiservice Platform. With this landmark decision, BT becomes the first major service provider to implement a strategy of a single broadband asynchronous transfer mode (ATM) core network. The contract awarded to GPT includes MainStreetXpress¦ switches, customer access equipment and network and service management from the Siemens / Newbridge Alliance and Newbridge Affiliate companies. This network will enable BT to seamlessly deliver a comprehensive range of services to its customers.
KANATA, Ontario, August 8, 1997 - Newbridge Networks today announced that the Siemens / Newbridge MainStreetXpressT 36170 Multiservices Switch has been selected by BC TEL Advanced Communications and BCnet for the companies' Internet exchange center. Located in Vancouver, British Columbia, the network access point (NAP) is one of five such exchange centers in North America and is the first NAP located in Canada.
KANATA, Ontario, August 7, 1997 - Newbridge Networks today announced that The Boots Company, one of the United Kingdom's leading retail companies, is investing $60 million in the world's largest frame relay/asynchronous transfer mode (ATM) network to link its 1,300 Boots The Chemists locations, including retail stores, warehouses and its head office in Nottingham. The network, which will extend across the UK, the Republic of Ireland, the Isle of Man and the Channel Islands, will be supplied by Energis and is based on the MainStreetXpress¦ 36170 Multiservices Switch.>>>>
A million here, a milliion there, and pretty soon you have real money.
The next $ announcement may well be flat. The last results (or maybe it was in the conference call) did refer to some limited further costs associated with the UB writedown, and these may well be included in the next Q.
Looking back over last quarter's report, I don't see any warning that this quarter will be disappointing:
newbridge.com
My notes from the CC state the company was taking measures to keep costs down for the quarter:
* only hire as people leave
* not increase operating expenses
* control capital expenses
* use inventory
You suggest there will be more write-downs connected with UBNet. My notes show that when asked about restructuring expenses, Charbonneau said they'd already completed what they planned to do. If he's wrong, let's hear it.
I'm not questioning your veracity, but asking for evidence to back up your claims.
Later ---
Pat
newbridge.com |
