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Technology Stocks : Newbridge Networks
NN 13.98+0.9%Nov 26 3:59 PM EST

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To: Robert who wrote (11430)5/11/1999 1:53:00 PM
From: Ian@SI  Read Replies (1) of 18016
 
RR,

If you can't deliver product, THAT's a problem you don't want to have.

Wrong!

The most important thing to customers is to deliver the product when THEY want it. Only Wall Street cares whether it's the last week of a quarter or the first week of the next quarter.

To date, NN's customers haven't complained about delivery slots. So none of these are likely to start looking elsewhere due to delivery schedules.

In fact, it's probable that the customers are gaming the system, knowing that they can get best prices by waiting until 3 days before the quarter closes. If that turns out to be the case, then NN could simply reduce the maximum discount available from list about 2 weeks before the quarter end. Presto, 1 quarter later, the "Wall Street" problem is fixed.

Customers would quickly learn that placing orders that can be delivered in the quarter entered would give them the maximum discount.

In any case, Mr Lutz will implement solutions based upon facts. On this thread, there's too much idle speculation (including the last 3 sentences of this post).

FWIW,
Ian.
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