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

To: gbh who wrote (12977)	8/25/1999 8:42:00 AM
From: Peppe	Read Replies (1) \| Respond to of 18016

Gary, You bring up two very good points. DSO (or receivables) are higher and that does sound off an alarm. I also agree with you on the point on inventory. However, Alan can't be expected to perform miracles. Solving NN's supply chain issues should take a couple of additional quarters, so the only way to get product out now is to increase inventory on hand. It was made clear that this was a short term situation and I don't think the street will penalize NN for that. As fror the receivables issues, I don't think it's fair to compare NN to CSCO's situation. NN's DSO is more in line with LU, which has a similiar mix of carrier business. This is something that I would watch carefully however over te coming quarters. All in all, I'd say Alan is on the right track with NN. He's starting over with wall street and he has to regain their confidence with continued performance over the coming quarters. I'd say the NN team is back on track, IMHO.(PS, currently holding no NN positions) Cheers, peppe

To: gbh who wrote (12977)	8/25/1999 11:18:00 AM
From: pat mudge	Read Replies (1) \| Respond to of 18016

BancBoston Robertson Stephens reiterates BUY: August 25, 1999 10:48 BancBoston Robertson Stephens Reiterates Buy Rating on NN SAN FRANCISCO, Aug. 25 /PRNewswire/ -- The following is being issued by BancBoston Robertson Stephens, a member of the National Association of Securities Dealers, CRD number 41271: BancBoston Robertson Stephens senior communications and networking analyst Paul Silverstein today reiterated his Buy rating on Newbridge Networks (NYSE: NN). The company, headquartered in Canada, is a leading vendor of Wide Area Networking (WAN) ATM, frame relay and advanced private line core, edge and access networking equipment. "We are reiterating our Buy rating on Newbridge Networks, following the company's announcement of solid-fiscal-first-quarter 2000 results," said Silverstein. "The company reported revenues of CDN$495.1 million and excluding one-time charges, operating income of US$0.18 per share, beating both consensus and our estimates. "The upside in the quarter was driven by a better-than-expected increase in revenues and strong management of SG&A and R&D expenses," said Silverstein. "The company's WAN packet products continue to drive revenue growth, increasing 11.9 percent sequentially. "To reflect the improved performance in the quarter, we are raising our fiscal 2000 earnings-per-share estimate from $0.89 to $0.93. We are initiating a fiscal 2001 earnings-per-share estimate of $1.39," said Silverstein. "In our view, Newbridge remains the best remaining pure-investment vehicle for addressing the demand tornado in the market for wide area networking ATM switches and related equipment."