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

To: zbyslaw owczarczyk who wrote (11938)	6/21/1999 4:30:00 PM
From: zbyslaw owczarczyk	Read Replies (1) \| Respond to of 18016

Newbridge Networks VP of Operations Rodgers Quits (Update1) (Adds details, background starting in 2nd paragraph. Updates share price.) Ottawa, June 21 (Bloomberg) -- Newbridge Networks Corp. said Vice President of Operations Bruce Rodgers quit his post after 13 years on the job, as the maker of networking equipment struggles to get back on track after a string of profit shortfalls. Rodgers, 44, decided to leave on his own, said Newbridge spokesman John Lawlor. The company is searching for a replacement and has three candidates. President and Chief Operating Officer Alan Lutz will take over responsibility for daily operations in the interim. The resignation comes as Newbridge takes steps to fix operational problems that resulted in disappointing earnings for the past two quarters. The company, whose switches move data around phone and corporate networks, wasn't able to complete shipments on time, partly because it hadn't stocked the necessary parts and wasn't processing orders well. ''Alan (Lutz) has been very hands-on,'' since the most recent warning on May 4, Lawlor said. ''The position has changed significantly over the past 13 years.'' Rodgers's resignation is effective today. Ottawa-based Newbridge expects to name a successor for Rogers in the near future. Newbridge plans to offer Rodgers another position at the company or one of its closely held affiliates, Lawlor said. Newbridge had fiscal fourth-quarter profit from operations of C$33 million (US$22 million), or 12 U.S. cents a share, in the quarter ended May 2. That compared with initial expectations of 26 U.S. cents a share and reduced forecasts of 21 U.S. cents. The company also reported earnings that fell short of analysts' original forecasts in the quarter ended Jan. 31. That's when it first cited the problems filling orders on time. Newbridge has failed to meet profit expectations in five of the past eight quarters. Newbridge is expected to report profit of 16 U.S. cents a share for the quarter ending in July, the average estimate of analysts polled by First Call Corp. Newbridge shares rose C$2.90 to C$44.15 in midafternoon trading. NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min.