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Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: pat mudge who wrote (11918)	6/17/1999 11:32:00 PM
From: zbyslaw owczarczyk	Read Replies (1) \| Respond to of 18016

On economic front: FOCUS-S.Korea wants reforms even if growth slows By Yoo Choon-sik SEOUL, June 18 (Reuters) - South Korea's finance minister said on Friday the government would pursue economic restructuring even if it means slower growth. ''Faithful implementation of restructuring plans remains the government's top policy priority even at the cost of slower economic growth,'' Finance Minister Kang Bong-kyun said in a speech at a breakfast meeting of senior newspaper and broadcast editors. The remarks came a day after he emphasised the government would push ahead with a requirement for large business conglomerates to cut the debt-to-equity ratios of their affiliates below 200 percent by the end of this year. South Korea's gross domestic product grew a real 4.6 percent in the quarter to March from a year earlier, following a 5.3 percent decline in the previous quarter. The government now expects GDP to grow by about five percent for 1999, compared with a 5.8 percent contraction in calendar 1998, the economy's worst performance on record. A recent Reuters poll of 10 research houses produced an average forecast for GDP growth of 4.8 percent this year and 4.5 percent next year. Some analysts have raised concerns that the economy's rapid recovery from last year's severe recession could lead to companies becoming complacent about their restructuring efforts. ''There are even concerns that the pace of economic recovery is too fast. Regarding these concerns, the government thinks there is nothing to worry about, under the assumption that restructuring is promoted with consistency,'' Kang said. He said the economic recovery would contribute to increasing the government's revenue this year by about five trillion won ($4.3 billion) and the government would spend half of the money to offset this year's budget deficit. ''Consequently, this year's budget deficit will fall to about four percent of GDP from the earlier expected five percent,'' Kang said. In 1998, the country's GDP amounted to 449.51 trillion won at current prices. He said the trend, combined with the government's efforts in other sectors, would help the nation achieve a balanced budget two to three years ahead of its 2006 target. The other half of the increased revenue would be spent to support financial and tax favours for business start-ups and to help workers through soft loans, he added. The government planned to draft a supplementary budget scaled at 1.1 trillion won, Kang said, without giving a time frame for the extra budget. He said the government would allow employee stock ownership cooperatives, usually allocated for some 20 percent of rights issues, to sell their shares after holding them for one year. The minimum shareholding period for such cooperatives has been set to be cut to three years this year from the current seven to help workers profit from the bullish local market. ($1 equals 1,166 won)

To: pat mudge who wrote (11918)	6/18/1999 7:01:00 AM
From: Glenn McDougall	Respond to of 18016

Serge, Every once and a while you post something that adds value to the thread. I have always felt that SI is the best in the business but your remarks tarnish that quality, try to keep the standards that we all set high. The least Pat should expect from you as a gentleman is an apology and it should be forthcomming. Newbridge drops billion-dollar suit By CP TORONTO -- Newbridge Networks Corp. has dropped a $1-billion lawsuit after the defendant firm was sold to one of Newbridge's customers. Newbridge filed the suit against WIC Connexus in February claiming that the firm had broken a contract with the Kanata networking company. But yesterday, MaxLink Communications Group of Companies announced it has acquired WIC Connexus and its affiliate Regional Vision Inc. for $50 million. Newbridge has already forged a strong relationship with MaxLink. "So naturally it follows that we dropped the litigation against WIC Connexus," a company spokesman said. Newbridge is helping MaxLink build a national wireless communications network. With the deal Canada's telecommunications market witnessed the birth of a new national competitor. But it's a safe bet few Canadians have heard of MaxLink. The deal gives the Toronto-based firm access to 207 communities across Canada. MaxLink and Connexus are both start-up companies working on a relatively new type of telecom technology known as local multipoint communications systems, or "This is very new," said Joel Bell, chief executive at MaxLink. "It's not in the market yet ... But five years from now, we won't be able to imagine doing business without high-speed broadband connectivity." LMCS is a wireless service that transmits and receives calls, data, Internet and other digital traffic via rooftop antennas. "It's relatively easy to deploy because it doesn't mean carving up streets and going through sewer pipes," said George Karidis, associate director at the Yankee Group in Canada, a research firm based in Brockville. "It means finding the right rooftop and connecting to the existing wiring in the building." LMCS can handle video conferencing, virtual private networks and electronic commerce. Bell said he expects commercial service to be introduced in the Ottawa-Hull area within weeks. Later this summer, Montreal and Calgary will sprout tiny LMCS antennas, followed by Toronto and Vancouver.

To: pat mudge who wrote (11918)	6/18/1999 7:11:00 AM
From: Glenn McDougall	Respond to of 18016

Newbridge big winner after $50M deal reopens $400-million contract Kanata giant drops lawsuit after MaxLink corners emerging wireless network Bert Hill The Ottawa Citizen There's a thin line separating yesterday's bum from tomorrow's hero in the world of technology. Yesterday it was Newbridge Network's turn to step over the line, thanks to a major consolidation of a fast-growing corner of the wireless communications market. Only months ago, Newbridge's future in the fixed wireless communication market appeared threatened by industry giant Cisco Systems. But now Newbridge is poised to scoop up the lion's share of $1-billion in orders in Canada for a new technology that could challenge fibre optic and cable pipes for the business of moving huge volumes of data, voice and video messages. The move should give Newbridge fresh momentum in winning contracts for similar technology in the U.S. which is about a year behind the Canadian market. Revenues for the service in the U.S. are expected to jump from $100 million now to more than $8 billion in 2007. For $50 million, MaxLink Communications Group it is buying WIC Connexus and a major interest in a third company. The combined company will control the emerging local multipoint communications system (LMCS) market in 207 cities across Canada. LMCS uses microwave base stations and small dishes mounted on customer buildings to deliver information. It is cheaper than fibre-optic service and is expected to target small and medium-size organizations. But it needs clear sight lines and good weather to work effectively and will face stiff competition. MaxLink president Joel Bell said yesterday's merger puts the company into every major Canadian market. "We can seize the opportunity now because we have the technology, operating experience and financial strength to make the $1-billion investment required over the next four years." MaxLink will roll out its first Canadian service next month in Ottawa, followed by Montreal and Calgary. It has licences for 33 markets across Canada. WIC Connexus has the licences for Toronto, Vancouver and 174 other markets, as well as a 49-per-cent stake in another licence-holder called Regional Vision. It is about a year ahead of similar services being introduced in the United States. Major U.S. companies have been buying up local licences. Motorola and Cisco announced plans last week to jointly develop technology. Newbridge was one of the pioneers of the technology and appears to have a lead in Canada and the U.S. in lining up contracts against bigger rivals. But in February, it suffered a setback when WIC switched the contract, which Newbridge shared with Alcatel SA, to Cisco Systems. The initial contract for transmission stations in Toronto was for only about $50 million, but is expected to grow to about $400 million nationwide. The decision followed WIC's takeover by Shaw Communications, which has had a long relationship with Cisco. Newbridge promptly sued WIC for $900 million in damages for alleged breach of contract and settled in for a long legal battle. But now, with MaxLink in the driver's seat, Newbridge could be poised for a clean sweep. Not only does it have the existing MaxLink contract for about $400 million, it gets the whole WIC contract, including Alcatel's share. As a Newbridge spokesman preferred to put it: "We are in a position to provide end-to-end solutions across Canada." Newbridge announced yesterday that is dropping its lawsuit. A spokeswoman for Cisco Canada said the company had no comment on the deal.