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

To: blaireo1 who wrote (16584)	1/25/2000 8:45:00 AM
From: zbyslaw owczarczyk	Respond to of 18016

Newbridge Networks and TekSell.com Team Up to Create Innovative E-Auction of Mature IT Equipment Aggressive Strategy Creates New Channel and Revenue Source for Newbridge Networks KANATA, Canada--(BUSINESS WIRE)--Jan. 25, 2000-- Newbridge Networks (NYSE:NN - news; TSE:NNC - news) today announced it is working with Teksell.com, a provider of online business-to-business auctions of high-end information technology (IT) equipment. The relationship will enable Newbridge Networks to auction its mature inventory on TekSell.com's Web site (www.teksell.com). ''This innovative e-commerce effort provides another channel and revenue source for Newbridge -- in line with our aggressive new business strategy,'' said Pearse Flynn, president and chief operating officer of Newbridge Networks. ''Why should we have perfectly good equipment languishing in our warehouses, when it could be benefiting our valued customers in their networks?'' The TekSell auction model will provide a way for Newbridge Networks to rapidly move its nine-month and older inventory, freeing space for high-demand products. The dynamic pricing will offer key customers and channel partners the ability to select from multi-million dollar listings on a wide range of networking equipment. ''Working with TekSell.com allows us to move rapidly into the e-commerce space and provide a new revenue source without disrupting our existing channels,'' said Tim Ragan, vice president of eBusiness for Newbridge Networks. ''The strategy creates an excellent opportunity for our customers and partners to purchase high-end IT equipment at very attractive prices in a secure and trusted environment. A significant element of TekSell's business model is its Trusted Auction Partner program. It allows companies to host multiple sites with public or private auctions. This flexibility will enable Newbridge Networks to offer private auctions to its key customers, and later open it up to public auctions. TekSell provides companies such as Newbridge Networks with a private, password-protected auction site that is open to VARs, distributors and wider markets according to each company's requirements. About Newbridge Networks Newbridge Networks designs, manufactures, markets and services wide area networking solutions for Internet service providers; local, long-distance, and wireless communications companies; cable television carriers; and corporate customers in more than 100 countries. The Company leverages its relationship with Newbridge affiliate companies and strategic alliances with numerous other networking companies to deliver complete end-to-end solutions. Newbridge customers include the world's 350 largest telecommunications service providers and more than 10,000 corporations, government organizations and other institutions. Founded in 1986, the Company employs more than 6,000 people on six continents. News and information are available at www.newbridge.com. About Teksell.com Headquartered in the Research Triangle Park region of North Carolina, TekSell.com provides trusted business-to-business auctions for new, overstocked, remanufactured and previously-owned IT equipment for serious IT professionals. The company is uniquely positioned in the Internet auction space as a marketplace for certified data, video and voice equipment with value-added services such as a money-back guarantee, Y2K verification and secure transactions with escrow protection. Teksell also offers private branded auctions for OEMs, distributors and resellers giving them an instant e-channel without incurring the significant overhead of hosting and maintaining an internal auction site. For more information, visit teksell.com. Contact: Newbridge Networks Media and Industry Analysts: Sarah Miller, 613/599-3600 ext. 4563 smiller@newbridge.com Jim Adamson, 650/444-2757 jadamson@newbridge.com Financial Analysts: John Lawlor, 613/591-3600 Ext. 1013 jlawlor@newbridge.com or Gibbs & Soell (Teksell PR agency) Financial Analysts: David Chatham, 919/870-5718 dchatham@gibbs-soell.com

To: blaireo1 who wrote (16584)	1/25/2000 8:46:00 AM
From: Peppe	Read Replies (1) \| Respond to of 18016

blaireo1, I think the point is that NN has completely blown its credibility. Even though they announced that they should be ok this quarter, nobody believes them enough to prop the stock up. Also, it is important to note that this quarters numbers are coming from a reduced guidance. I've siad this for some time now, but if NN wants to go it alone, they have to put some numbers on the board consistantly. Making a reduced expectation quarter will not turn this puppy around. Cheers, peppe

To: blaireo1 who wrote (16584)	1/25/2000 8:47:00 AM
From: zbyslaw owczarczyk	Read Replies (1) \| Respond to of 18016

Newbridge plans to auction old networking gear By Wylie Wong Staff Writer, CNET News.com January 25, 2000, 4:00 a.m. PT Newbridge Networks is hoping to auction off its excess networking equipment over the Web. The Canadian firm plans to sell off some of its older gear to businesses through a Web start-up called TekSell.com, which aims to become an eBay of sorts for technology companies that market networking equipment and server systems. For Newbridge, which has struggled financially the past few years, the Web auction is a new avenue to move older equipment sitting in warehouses and gathering dust, executives said. TekSell.com, which has already signed on some 20 companies including networking firm Allied Telesyn, says its goal is to help firms who don't want to spend their resources to find buyers of old equipment. The Web start-up plans to add more clients in the coming weeks and also is negotiating with the likes of Cisco Systems and Nortel Networks as well as some server manufacturers, according to company executives. Online auctions are common enough for PCs and and other relatively inexpensive equipment, but selling servers and networking gear departs from the norm. Though occasional examples of expensive hardware have been found on consumer sites, Sun Microsystems' December move to market servers and workstations on eBay may have been the first time a big-name company started selling current high-end products. "We suspect...the customers we'd attract at eBay are not the people attracted by the channel," a Sun representative previously told News.com. Newbridge's sales staff has historically sold surplus equipment by offering discounts to its customers, and will continue to do so, said Tim Ragan, Newbridge's vice president of e-business. "E-commerce auctions is a new capability for us and the industry," Ragan said. "This will not become our major sales channel anytime soon, but it will potentially add millions of dollars (in sales) per quarter as we go forward." Most network equipment makers, including Cisco and Nortel, already sell their new products online. But analysts believe Newbridge is the first one to sell its surplus equipment through a Web auction. Cahners In-Stat Group analyst Laurie Gooding said the Web auction is a novel idea, but wondered whether Newbridge is admitting it over-estimated demand for its older equipment. "With the advent of e-commerce, this is a sound strategy, but it sounds like a fire sale to me," Gooding said. "That tells me loud and clear that their products didn't move well and they're trying to reduce inventory. That they overestimated market demand and these products were not as successful as they thought it would be," the analyst said. A Newbridge representative said it is not a fire sale, but merely a new channel. Regardless, Newbridge executives say they plan to begin auctioning off their equipment early next week and will sell basic switches and other equipment, as well as phone switches for voice services and leased lines. Such sales shouldn't be difficult, one analyst said. "They're almost commodity items. They're not cutting-edge technology, so most buyers will be familiar with these products," said Dataquest analyst John Armstrong. "So they're probably suitable to sell over the Web." Related news stories • Newbridge jumps on upgrade, takeover talk January 11, 2000 • Newbridge Networks climbs on buyout speculation November 9, 1999 • Newbridge Networks' future in question November 3, 1999 Free Newsletters All Newsletters