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

To: Tunica Albuginea who wrote (12683)	8/13/1999 7:21:00 AM
From: Glenn McDougall	Read Replies (1) \| Respond to of 18016

WE NOW HAVE THE OFFICIAL FRIDAY 13th OTTAWA SUN FORCAST FOR NEWBRIDGE. SO I MUST BE TRUE (vbg) No news good for Newbridge Silence has analysts hopeful By KEVIN BELL, Business Editor, Ottawa Sun FOR NEWBRIDGE investors, silence is golden. Twelve days after the company closed the books on its first quarter, the company's silence is being taken as a sign by analysts that things probably turned out well. For a company that has issued profit warnings in five quarters of the last eight, the lack of news is being greeted with a sense of relief. "The assumption is that if we haven't heard anything by now, everything is okay," said Michael Neiberg, an analyst with Hambrecht & Quist in New York. "The assumption is that they're hitting their targets." Newbridge Networks Corp. is in its traditional quiet period before reporting financial results on Aug. 24. But analysts say the company is facing a crucial test in the investment community. "For the past eight to 10 quarters, it's been like a coin toss," said Patrick Houghton, an analyst with Sutro & Co. in San Francisco. Missing this quarter could demolish Newbridge's credibility, he said. "It would also be a matter of a lack of execution skills. But I think they're going to make the quarter." Newbridge issued a profit warning last May for its fourth quarter. The company said manufacturing snafus prevented the firm from delivering equipment despite a strong intake of orders. Neiberg said Newbridge needs to dispel deep skepticism in the market over future prospects. "I would say this quarter is a must." He said he wants a quarter with no surprises. He's predicting earnings of 17cents a share on earnings of $490 million, which is close to analysts' consensus. A year ago, Newbridge made 20cents a share on $426 million in revenue. "The key to this quarter is that they left some customers in the lurch. If you don't please your customers, they have options on who else they can buy from," Neiberg said. Analysts are also looking for signs that the company's revenue growth can exceed the 10% posted last year and can approach those of competitors, such as Cisco Systems Inc. which has grown revenue by more than 30%, Neiberg said. "It's a 'show me' quarter," he said. "Show me that you can benefit from the growth that is driving other businesses."

To: Tunica Albuginea who wrote (12683)	8/13/1999 7:54:00 AM
From: jeff greene	Respond to of 18016

TA -- As much as I would like to refute your analogy, being a PFE employee, the comparison is very accurate. Let's be thankful that efficacy is improved when NN steps in to fill the void of other's failures, unlike Trovan and would be Viagra - there are no replacements for patients. Jeff

To: Tunica Albuginea who wrote (12683)	8/13/1999 11:30:00 AM
From: Peppe	Read Replies (2) \| Respond to of 18016

TA, I must congradulate you for your original analogy. Comparing Viagra to ATM switches certainly stretches beyond my abilitly to think out of box. At this rate, I almost hesitate to say this, but I think it's true: if NN finds itself as the only switchmaker with a stress-resistant ATM switch, and ATM becomes the backbone of all the web's traffic, can we talk about NN being at $100+/share ? At the risk of sounding like I'm protecting the guilty (in this case, it's believed to be LU), I'm going to go in a different direction. In both the MCI and AT@T networks, failures occured during upgrades of their networks. The upgrades are necessary due to the tremendous demand in bandwidth and advanced network services. The subsequent failures occuring during these very sophisticated upgrades can happen for a number of reasons. MCI's woes are probably more due to the fact that they are building a single network from multiple acquisitions they've made, using incompatible equipment from multiple vendors. These failures can be avoided by using proper operational procedures and planning for problems. MCI is itself much more guilty for this problem than any specific vendor. To imply that this can never happent to a carrier using NN equipment is riduculous. To claim that they are the only vendor with carrier class ATM solutions is naive. NN at $100 share ? Not in my lifetime. And I'm a pretty young guy. <vbg> Cheers, peppe