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

To: Glenn McDougall who wrote (14658)	11/18/1999 8:07:00 AM
From: Glenn McDougall	Read Replies (1) \| Respond to of 18016

Newbridge meet sparks layoff fears By Kevin Bell, Ottawa Sun ALL Ottawa-area employees of Newbridge Networks Corp. have been summoned to a mass meeting today to hear plans on how the company will try to put its troubles behind it. The mid-afternoon meeting at the Corel Centre, the first of its kind in the firm's history, will take place as the board of directors puts its stamp of approval on a management plan to boost profitability. A board meeting yesterday continues today to develop a new strategy after Newbridge issued its sixth profit warning in 10 quarters on Nov. 2 and accepted the resignation of president Alan Lutz. Newbridge has told employees chairman Terry Matthews and president Pearse Flynn will discuss "the new product and solution strategies, and changes required to refocus the business and build momentum." The meeting will be broadcast to employees across North America. Some employees, however, fear layoffs may be imminent if the board okays cost cutting. "It sounds like it's going to be bad news," said one employee in manufacturing. "Everybody I know doesn't know if they're going to have a job by the end of the month." Supervisors have been warning employees against making large financial commitments in the near future, he said. But "it's premature to comment" on layoffs, company spokesman Christopher Fox said. Earlier this week, a company insider said the board was expecting to hear plans on possible downsizing or whether the beleaguered firm should put itself up for sale. Patrick Houghton, an analyst with Sutro & Co., said Newbridge's problem is a lack of revenue, not its costs. But if costs are cut, manufacturing may be vulnerable, he said. "There are very few companies that do their own manufacturing," Houghton said. As rumours continue to swirl about possible takeover bids, analysts are watching for signs Newbridge is on schedule to ship its new 50-gigabit switch. The company is losing market share to Lucent Technologies in its key U.S. market because it does not have a high-capacity telecommunications switch. Yesterday, Newbridge refused to comment on speculation European telecommunication giant L.M. Ericsson Telephone Co. may be interested in bidding for Newbridge. "If we find an acquisition target which is big, then we will of course present it to Ericsson's board," president Kurt Hellstrom told Reuters yesterday. "If you're talking about Newbridge, then that would be a large acquisition."

To: Glenn McDougall who wrote (14658)	11/18/1999 8:39:00 AM
From: Tunica Albuginea	Respond to of 18016

Lucent patent case goes to jury biz.yahoo.com Wednesday November 17, 8:35 pm Eastern Time CORRECTED - Lucent patent case goes to jury In WILMINGTON story headlined ``Lucent patent case vs Newbridge goes to jury,' please correct the 5th graf to read: ``... Lucent, of Murray Hill, N.J., was established in 1995 when AT&T (NYSE:T - news) decided to divest non-core business segments, including Bell Laboratories...' instead of ``... Lucent, of Murray Hill, N.J., is the successor to Bell Laboratories, AT&T's (NYSE:T - news) research arm that was spun-off after the 1995 court-ordered breakup of AT&T.' (Clarifying the description of Lucent) A corrected version follows. By Rita Farrell WILMINGTON, Del., Nov 17 (Reuters) - A federal jury began deliberations Wednesday following a three week trial on Lucent Technologies Inc's (NYSE:LU - news) allegations that Newbridge Networks Corp's (NYSE:NN - news) MainStreet products infringe five Lucent patents for data networking systems used in Internet communications. In closing statements Wednesday in the U.S. District Court in Delaware, Lucent attorney John Desmarais asked the 10 member jury to award Lucent damages of $10 million, or a one percent royalty for each patent. Desmarais also wants any damages tripled, claiming that Newbridge's alleged infringement was ``willful' because the company continued to make new products after a July 1995 warning letter from Lucent. Newbridge attorney Thomas Kenworthy said Lucent's patents were invalid because they were anticipated by earlier work and because their claims were too ``indefinite' to comply with patent law. ``Lucent said 'Hey, you're infringing;' but said nothing of what products were infringing what claims,' Kenworthy said. ``The pretense was they wanted to give us a license (for $30 million). That's a joke. It was a holdup.' ``The inventors didn't even know what they were claiming. That breaks the faith with the bond that gives them a patent,' Kenworthy said, referring to trial deposition testimony by the inventors who were awarded the patents in 1988 when they were AT&T (NYSE:T - news) employees. Lucent, of Murray Hill, N.J., was established in 1995 when AT&T (NYSE:T - news) decided to divest non-core business segments, including Bell Laboratories, court papers say. Newbridge, of Toronto, Canada, denies that its MainStreet, MainStreetXpress, and VIVID products infringe Lucent's patent claims, even if their validity is upheld. Further, Newbridge contends that many of its customers are licensed by Lucent to use equipment and methods ``falling within the scope of the patents,' court papers say. The patents at issue are for equipment and processes used to manage congestion when electronic data, generated by computers, telephones, television and facsimile machines, are transmitted on the same network system. Data networking allows two or more users to communicate with one another, as with e- mail. The patent suit is a sidebar to rumors that Newbridge is a possible takeover target for Swedish telecom equipment maker Ericsson and the French communications giant Alcatel . Newbridge has denied the speculation that there are merger talks. On Thursday, Newbridge is scheduled to hold its quarterly conference call with analysts and press to review second quarter 2000 fiscal results. The call will follow an earlier meeting with staff and employees ``to discuss strategic directions,' spokesman Christopher Fox told Reuters. When asked what effect, if any, the outcome of the patent dispute would have on earnings, Fox said ``It's not appropriate for me to comment' while litigation is pending.ÿ

To: Glenn McDougall who wrote (14658)	11/18/1999 8:41:00 AM
From: Tunica Albuginea	Respond to of 18016

Newbridge Keeps Quiet About Takeover Talk dailynews.yahoo.com Thursday November 18 3:18 AM ETÿ ÿNewbridge Keeps Quiet About Takeover Talk ÿBy Susan Taylor ÿOTTAWA (Reuters) - Amid growing takeover speculation, troubled Newbridge Networks Corp (NYSE:NN - news). refused to comment ÿon Wednesday after Swedish telecoms equipment maker Ericsson said it is not opposed to making large acquisitions such as a takeover of ÿNewbridge. ÿOttawa-area telecoms equipment maker Newbridge has been seen as a takeover target since issuing its sixth earnings warning in 10 ÿquarters on November 2 and announcing the resignation of President Alan Lutz. ÿNewbridge stock was subsequently battered by investors, but takeover rumors have helped it regain some ground. ÿShares made minor gains on Wednesday, adding 60 Canadian cents to C$27.85 on the Toronto Stock Exchange and 1/16 to $18-15/16 on ÿthe New York Stock Exchange. ÿNewbridge has played down speculation that Ericsson and France-based telecoms group Alcatel Alsthom are interested in buying the ÿcompany. ÿ``If we find an acquisition target which is big, then we will of course present it to Ericsson's board,' President Kurt Hellstrom told Reuters ÿon Wednesday. ÿResponding to a question on what constitutes a large acquisition, Hellstrom said: ``If you're talking about Newbridge, then that would be a ÿlarge acquisition, while ACC was a smaller acquisition.' ÿEricsson bought California-based Advanced Computer Communications (ACC) from Newbridge in 1998 for $285 million. ÿThe world's third-largest maker of mobile phones and the biggest producer of mobile systems, Ericsson has until now followed a strategy ÿof buying small- and medium-sized firms. ÿ``Ericsson may simply be leaving the door open and may have somebody else in mind, (and) they may have nobody in mind,' said Rob ÿMacLellan, an analyst at CT Securities in Toronto. ``I wouldn't read too much into it.' ÿNewbridge has denied media reports that its board was told it would review takeover bids when it met on Wednesday and Thursday. ÿDirectors are considering an action plan, on which work began in late August, to address sales problems. ÿThat plan will be discussed with 3,300 Ottawa-area staff at the nearby Corel Center hockey arena on Thursday afternoon. Newbridge said ÿit holds staff updates with the release of quarterly results. ÿ``I can categorically state it (the plan) wasn't in response to our perception of a slowdown in ATM revenue,' Newbridge spokesman John ÿLawlor told Reuters. ÿNewbridge, which warned it expects a profit of 8 to 10 cents per share versus analyst expectations of 20 cents per share, releases its ÿresults in a conference call late on Thursday. ÿSlowing sales for the firm's Asynchronous Transfer Mode (ATM) technology, which zips multimedia data around networks at high speeds, ÿwas largely to blame. ÿ``You would expect that the results will be pretty well in line with the pre-announcement of November 2,' Lawlor said. 'Probably less time ÿwill be spent on the results and probably more time on the strategic actions.' ÿAnalysts may also want further details on the departure of Brian Jervis, the head of the switching product group. Ed Ogonek, who joined ÿNewbridge in August from Alcatel, has replaced Jervis on an interim basis. ÿAlthough analysts are keen to hear details of the repair plan, several suggest the outlook will not be positive. ÿ``My gut feel is that guidance on the 18th is going to entail much more modest ATM growth (and) higher overhead spending because of the ÿrecent acquisitions,' said MacLellan. ÿ``I don't think the street is going to like, a whole lot, what they hear Thursday night. And that is going to translate probably into weakness on ÿFriday -- takeover speculation aside.' ÿNewbridge said it expects sales to pick up steam with its new high-speed switch, scheduled for release for lab trials in upcoming weeks, ÿand its broadband gear. ÿ``Do we believe that the sales slowdown will correct itself?...yes we do,' Lawlor told Reuters. ``Every sign indicates that...sales in the ÿU.S. market, as well as elsewhere, but in the U.S. market to begin accelerating again.' ÿMeanwhile, after a three-week trial on Lucent Technologies Inc (NYSE:LU - news).'s allegations that Newbridge's ATM products infringe ÿfive Lucent patents for data networking systems used in Internet communications, a federal jury began deliberations in Delaware on ÿWednesday. ÿ($1-$1.47 Canadian)ÿ ÿEarlier Stories ÿÿÿÿ Newbridge Quiet on Ericsson's Takeover Comments (November 17)ÿ