The Canadian Financial Post:
Newbridge vows turnaround after 1998 net loss
TORONTO (CP) -- Newbridge Networks Corp. reported strong fourth-quarter results Tuesday, but the high-tech company's $3 million in net profit wasn't enough to erase hefty losses reported earlier in the fiscal year.
ÿAs a result, the high-profile telecommunications equipment maker reported a net loss of $18.3 million, or 10 cents per share, in fiscal 1998. That compares with a net profit of $156.9 million in 1997.
ÿStill, the company managed to meet analysts' expectations for the fourth quarter, earning 18 cents a share when one-time gains and charges are excluded.
ÿ"Fiscal 1998 was a year of advancement," chief executive Terence Matthews said in a statement.
ÿ"We faced some challenges during the year; we met these challenges head on, made some tough decisions -- which are proving to be good decisions -- and we are now in a strong position to move forward."
ÿInvestors were also buoyed by the turnaround in the three months ended April 30. With fourth-quarter revenue climbing to $395 million, up 10 per cent from the previous quarter, traders gave the company's stock a healthy boost.
ÿShares in Newbridge, based in Kanata, Ont., near Ottawa, jumped $1.65 to close at $41.80 Tuesday on the Toronto Stock Exchange.
ÿBut that price is a long way from the dizzying heights reached last October when Newbridge shares were trading around $95.
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