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

To: Logain Ablar who wrote (12955)	8/24/1999 8:55:00 PM
From: pat mudge	Respond to of 18016

From Dow Jones: August 24, 1999 Dow Jones Newswires Newbridge Comfortable With FY2000 Net View Of 95c/Shr TORONTO -- Newbridge Networks Corp. (NN) continues to remain comfortable with the First Call mean earnings estimate of 95 U.S. cents a share for the fiscal year ending April 30, 2000, Alan Lutz, Newbridge's president and chief operating officer, told Dow Jones. After the market closed Tuesday, Newbridge, a networking equipment supplier based in Kanata, Ont., reported net of 18 U.S. cents a share for the first quarter of fiscal 2000. The figure beat the First Call estimate by 2 U.S. cents. In a telephone interview, Lutz described the quarter as a "good one." However, he said he wouldn't be guiding analysts to raise their estimates for fiscal 2000, preferring to take a conservative approach and focusing on trying to string together a few strong quarterly results. Newbridge Networks Corp.'s (NN) decision against getting too excited about the earnings outlook for the rest of fiscal 2000 likely stems from the company's recent history of falling short of market expectations. That said, Alan Lutz, Newbridge's chief operating officer and president, was in an upbeat mood about the latest quarter. In Newbridge's latest fourth quarter, the company reported disappointing results, citing supply/inventory management problems, which hindered the company's ability to meeting customer orders. In Tuesday's press release concerning the first-quarter results, Lutz is quoted as saying that the supply line management problems have largely been fixed. However, in the telephone interview he was more adamant, calling the problems "history." He also was buoyed by the 12% jump in sequential sales in the fiscal first quarter from the prior period for Newbridge's main product line of packet switches used by telecommunications carriers in their networks. Lutz said customer demand for wireless broadband equipment, which allows carriers to improve customer access to their networks, was also strong, but he declined to provide sales figures. In June, Newbridge announced plans to acquire U.S.-based Stanford Telecommunications Inc. to bolster its wireless broadband business. As part of the transaction, which has yet to be completed, Stanford is required to sell certain assets. Lutz said this part of the transaction was on track, but he couldn't comment further for regulatory reasons. Investors have also been eagerly awaiting details on the company's plan to sell Internet-based, high-speed switches, but Lutz would only say the details will be released soon. -Ben Dummett; 416-