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Technology Stocks : Newbridge Networks

NN 12.37

-1.8%

10:37 AM EST

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To: pat mudge who wrote (5280)	6/23/1998 8:51:00 AM
From: Techwatch	Read Replies (2) of 18016

Observations on MCI and NN Pat, I am curious why some people on this thread feel MCI is a major account for NN, and that NN will generate a lot of revenue from sales to MCI. Going into 1998 MCI had a total of 11 36170's installed with plans to a bring only another 11 on-line by end of 1998. The 36170's are being used for their ATM services but there are other vendors ATM switches there too (Fore and GDC). For their "HyperStream Frame Relay" they use a lot of Bay Networks BNX switches to provide the infrastructure for the 90,000 plus FR ports they provision (MCI has one of the largest Frame Relay service networks in the industry - and It is Bay's only significant frame relay account). However, several months ago Bay told MCI that they were not going to continue their development with their Frame Relay platforms. As a result MCI did a very extensive evaluation of Frame Relay Switch providers to determine who would replace Bay going forward. NN did NOT win this business. Finally, MCI is in the process of evaluating vendors for their future "IP" (MCI calls it BIPP) deployment. MCI publically announced that they would test the Lucent PacketStar 6400. I am sure they are considering other vendors as well, but NN is NOT one of them. So with only 22 36170's installed or planned in just one of the three major networking segments for MCI I just don't see a lot of revenue coming out of this account. I have seen how NN loyalists on this thread attack anyone who is perceived to be negative but I am not a NN nay-sayer. I am very objective and not as emotionally attached to NN as some people on this thread are. Please note that am simply looking for "the details". Any "quantifiable" comments that verify or deny what I'm saying are always welcome. My investment interest in NN as with all networking stocks is based on three things: 1) Underlying Technology - shipping today vs probable within months vs pipedream 2) Recent Wins - who is getting the wins, but most importantly I try to quantify these wins by finding out what has been installed and what is the legitimate grow plan (numbers of switches and $$$$) 3) Customer Retention - displacing vendors in the WAN switching market does not occur often. If a trend develops (either the displacer or displacee) it sends a loud message

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