While the pies are baking. . .
NN debuts in Financial Times:
>>>
THURSDAY NOVEMBER 26 1998 Americas
CANADA: Newbridge meets forecasts
By Scott Morrison in Toronto
Shares of Newbridge Networks were up almost 13 per cent to C$43.70 at mid-session yesterday after the Canadian networking equipment manufacturer reported its third consecutive quarterly increase in earnings, suggesting the troubled company is returning to financial stability.
The shares received an added boost when Newbridge announced it had won a contract to provide equipment that will enable China's state postal service to build its core national multimedia network.
The broadband network, to be developed in conjunction with Siemens of Germany, will enable the service to deliver voice, data and internet services in 31 provinces. Terms of the contract were not disclosed.
Earnings before exceptionals were C$47.6m (US$30.7m), or 27 cents a share, for the second quarter to November 1-in line with expectations although down 18 per cent year-on-year. Net earnings were C$53.3m, or 30 cents.
Newbridge is implementing a big restructuring programme to restore investor confidence as it attempts to increase its share in traditional markets while capturing a larger proportion of the growing market for data network equipment.
Revenue for the quarter rose almost 6 per cent from the previous quarter to C$457m, but gains were offset by rising costs. New technology, such as its asynchronous transfer mode (ATM) platform, continued as the prime driver for growth in the company's wide area networks revenue.
Sales of ATM and frame-relay networking equipment accounted for 54 per cent of revenue, against 45 per cent last time.
Sales of its older time division multiplexing equipment rose to C$194m, the highest in five quarters.
>>>>
Working on a longer report based on a series of conversations late in the day.
Pat |
