Ian,
dailynews.yahoo.com
Tuesday June 1 5:22 PM ET
Newbridge Delivers Disappointing Results
OTTAWA (Reuters) - Newbridge Networks Corp. (NYSE:NN - news) delivered fourth-quarter results Tuesday in line with an earlier profit warning that had played havoc with the company's share price.
The Ottawa-area firm, which produces digital networking gear, posted a fourth-quarter net loss of 11 cents a share versus a profit of 12 cents a share in the year-before quarter.
Excluding charges and gains it posted a per share profit of 12 cents a share against 13 cents in the year-before quarter.
Analysts had expected a profit of 21 U.S. cents a share excluding extraordinaries. Problems with the firm's supply chain were behind the shortfall, the company said.
Newbridge reported other results in Canadian dollars. Sales were C$457 million in the quarter and profit was C$33 million, or 18 Canadian cents a share, excluding charges and gains.
The results, for the period ended May 2, were in line with a May 4 profit warning that sent Newbridge shares into a tailspin. At the time, angry investors shaved the share value by more than a fifth, from C$53.60 to C$41.95, on the Toronto Stock Exchange.
One-time gains were related to the initial and secondary public offering of shares of Newbridge affiliate Tundra Semiconductor Corp. Charges reflected one-time costs to streamline operations by cutting development of some mature products and closing some offices.
For the year, Newbridge recorded sales of C$1.8 billion and a profit of C$162 million excluding nonrecurring items, or 91 Canadian cents a share.
Investors were jittery about the results and plans to repair supply chain problems earlier in the day. The stock fell C$1.35 to close at C$40.15 on moderate trading on the TSE. The company's results were released after the market closed.
($1-$1.48 Canadian)
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