From TSC:
Top Stories: Update: Newbridge Fourth
Quarter on Target
By Kevin Petrie
Staff Reporter
6/2/98 7:28 PM ET
Newbridge Networks (NN:NYSE) stirred just a little
excitement Tuesday evening. The Canadian networker met Wall Street's consensus estimates for its fiscal fourth quarter, earning 13 cents a
share before charges, down from 28 cents a year earlier. Revenue fell to C$395.2 million from C$441.3 million a year ago.
While Newbridge pegged the consensus estimate, investors
reacted mildly to the news. The stock traded at 30 at about
5 p.m., according to Reuters Instinet -- the same closing
price after a hefty rise of 2 1/2 during official trading hours.
The company issued its earnings press release late, which
might account for some of the slow reaction.
The book to bill was greater than 1, a bullish signal that
units ordered exceed sales billed. Sales of Newbridge's flagship 36170 switch for phone carriers steadied the company after several disappointing quarters. So-called packet-based products, which include
the 36170, comprised a healthy 62% of revenue. Meanwhile Newbridge's aged technology called time division multiplexing, or TDM, bounced mildly from last quarter's terrible levels, although the company gave no figures. Newbridge achieved gross margins of 59.6%, even with the
prior quarter. Some bulls had hoped for an increase.
Newbridge also reshuffled its brass a bit. Peter Charbonneau has become vice chairman, leaving the president and COO spots open for Alan Lutz, a veteran of Compaq(CPQ:NYSE). |
