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

To: pat mudge who wrote (14341)	11/4/1999 7:17:00 PM
From: Ian@SI	Read Replies (1) \| Respond to of 18016

Taking profits at the top and taking profits before warnings are poles apart and you know it. In the specific instance of NN during the past 1 1/2 years, is there any time difference between the Tops or the Warnings? Kindly do you plies on someone else's tombstone. Translation? I'm usually capable of getting past most typos, but can't see the intent of this directive. In any case, nice action by NN today. Perhaps the Street will forgive it sooner than any of us expect. It will be interesting seeing the action leading up to the 18th. Ian.

To: pat mudge who wrote (14341)	11/5/1999 11:01:00 AM
From: Tathanka	Read Replies (1) \| Respond to of 18016

"LIKE A BRIDGE FALLING DOWN" Pat, you've done a yeoman's job in keeping our hopes on this board. However, I'm sore afraid Newbridge has some serious problems executing as well as some serious problems with proper strategizing. Selling their stake in Cambrian Systems, thus taking themselves out of the whole fiber optics infrastructure which is where the future of telecommunications lies. I know Kevin Landis of the FirstHand Leaders Fund held some NN on the supposition that it had some good takeover assets. Here's an article taken off CNBC which you may already have seen: FRIDAY November 5, 1999 10:45 am ET Home Portfolio Stocks Funds Bonds Markets Money Talk CNBC TV Tools STOCKS ANALYSIS Nov 3 1999 10:53AM ET More on Stock Lab... Newbridge Networks Future in Question by Wylie Wong Staff Writer, CNET News.com Special to CNBC.com In the aftermath of Newbridge Networks Corp.'s {NN} latest earnings warning, the future viability of the firm is now in serious doubt, analysts say. The telecommunications-equipment maker Tuesday said it expects a profit of 8 to 10 cents a share for its fiscal second quarter ended Oct. 31, well below the 20 cents a share Wall Street analysts had predicted. Newbridge's president Alan Lutz resigned and was replaced with executive vice president Pearse Flynn, after the company's seventh earnings warning in its past 11 quarters. NN 52-week chart Newbridge's woes are even more curious, given the hype and success of high-end networking start-ups, such as Juniper Networks Inc. {JNPR} and Sycamore Networks Inc. {SCMR} and recent bullish gains made by Nortel Networks Corp. {NT}. Analysts say management turmoil and several missteps in strategy has left Newbridge in the mess it's now in and that a recovery will require a good business plan and good management that can execute a revised strategy. JNPR 1-month chart SCMR 1-month chart "They need a road map, and that's one thing Newbridge doesn't have," says Craig Johnson, analyst with the Pita Group. "They have to decide who they are and what they want to do. In the meantime, they've lost a lot of momentum. And they're missing out on windows of opportunity. If you're not there [in the markets], playing catch-up is almost impossible unless you're the market leader." During a conference call with financial analysts Tuesday, Newbridge CEO Terence Matthews said the company was developing an overall strategy and would announce it at a press conference on Nov. 18. "We have a small strategy team to make sure we address the issues we need to address and get this engine back on track," Matthews says. 52-week comparison chart: NN vs. NT Newbridge is still a leader in asynchronous transfer mode-based device offerings, which send voice and data signals over telecommunications lines at high speeds. The company also sells ATM-based high-speed routers and is developing products in the emerging broadband-access market. The firm recently improved its Internet-based product plans by purchasing two start-ups that make high-end Internet protocol-based routers and virtual private networking technology. VPN products allow service providers to offer business users inexpensive and secure connections to their corporate networks over the Internet. "They've done a tremendous job transitioning their products to be more IP-oriented," says John Armstrong, an analyst with market researcher Dataquest. Newbridge has to find some way to put strong, consecutive quarters together, but that task will be tough because the company competes against bigger firms, such as Cisco Systems Inc. {CSCO}, Lucent Technologies Inc. {LU}, and Nortel, and Lucent Technologies. 52-week comparison chart: NN, CSCO, LU "A lot of this relates to sales and marketing execution," Armstrong says. "But their visibility is somewhat limited. They're not on the same scale as the bigger players." Johnson says Newbridge has to go after optical network equipment, a market in which competitors such as Cisco have recently invested heavily and in which Nortel and Lucent already have products. Johnson adds that Newbridge made a mistake last December when it sold its 40 percent stake of fiber-optic infrastructure maker Cambrian Systems to Nortel. "They need to fill in the pieces they don't have and somehow buy the optical or switching optical products to allow them back into the core of the network," Johnson says. The problem, he adds, is the fact that Newbridge doesn't have the funds to purchase a company such as Sycamore Networks. He questions whether a hot start-up would even want to be purchased by a struggling firm such as Newbridge. Newbridge is a good acquisition candidate, according to analysts, but company executives have said in the past that the company isn't for sale. "Newbridge," Johnson says, "is like a bridge falling down." Feedback \| Copyright \| Usage Agreement \| Privacy Policy \| Linking Policy \| Online Tour