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

To: MD Bryant who wrote (13720)	10/18/1999 7:07:00 PM
From: zbyslaw owczarczyk	Read Replies (1) \| Respond to of 18016

Newbridge, for instance, specializes in ATM switches and therefore could probably only supply that part of SBC's order, he said. quote.bloomberg.com. One analyst said NT and LU will benefit mainly. Another ALA and CSCO and LU. IN reality, non of them know how much will be awarded to each vendor. Since SBC wants to provide in addition to internet access and voice over ATM (today SBC con.call) video and TV channels they have to go with NN's 3dSL, b/c NN is the only company which is shipping this solutions. Has already won 150 millions pounds contract in UK. Also,SBC has emphasized cost savings by using multi services ATM backbone. NN is right now the major supplier of ATM to SBC Comm. (August 98 contract) Zbyslaw

To: MD Bryant who wrote (13720)	10/19/1999 12:18:00 AM
From: Doug	Read Replies (1) \| Respond to of 18016

MD.B: The Telecom expansion is so overextended that it is one of the major causes of Asset Inflation. See:http://messages.yahoo.com/bbs?action=m&board=4687030&tid=nn&sid=4687030&mid=10098 Because of this, many of these Companies will see their return on Equity diminish resulting in an earnings squeeze. Just check on the largest; AT&T where Investors have bailed out. As these Companies feel the pinch, they pass on the squeeze to their Suppliers. The second Tier Companies that have the least stability of earnings are the ones with little or no bargaining power. It is these Companies from whom the maximum concessions can be squeezed by the Contracting Broker. Things would be entirely different if there were no other Supplier of Carrier switches. Three years is a long time in the high TECH world. Like the market, I do not see any immediate impact of the announcement on NN's current year Sales/Earnings.