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

To: kanta who wrote (2518)	12/3/1997 11:44:00 AM
From: Chris Stovin	Respond to of 18016

This was on the CNN Financial News site this morning...we don't usually hear much about Newbridge on CNN.. Canadian networking company will cut jobs in restructuring push December 3, 1997: 10:44 a.m. ET <Picture> <Picture> <Picture> Newbridge Networks RADNET Siemens KANATA, Ont. (CNNfn) - Canadian networking firm Newbridge Networks announced Wednesday it will trim approximately 280 jobs worldwide as part of a plan to refocus its resources in the enterprise market. <Picture>According to a press release from the company -- which produces networking applications and hardware for large, wide-array networks -- the job cuts will be effective within the next few months. <Picture>"This rebalancing of resources is . . . to reinforce [our] approach to business opportunities related to enterprise networks," said Peter D. Charbonneau, Newbridge president and chief operating officer. "These adjustments are being made in a manner which ensures we honor the commitments we have made to our enterprise customers." <Picture>Newbridge derives approximately one-third of its revenues from Global Fortune 1000 companies, which will comprise the primary target of its new business initiative. <Picture>Newbridge acquired the Internet marketing company RADNET in partnership with Siemens of Germany earlier in the week. The company said the purchase will strengthen its ability to address customer requirements for broadband network access. <Picture>Newbridge Networks is a global leader in ATM, frame relay and advanced private line networking systems, selling multimedia solutions to organizations in more than 100 countries. <Picture>In November, Newbridge reported that earnings for its fiscal second quarter were up 37 percent from the year-earlier period but US$3 million lower than in the fiscal first quarter. <Picture>After the announcement, Newbridge shares (NN) were down 5/8 at 44-7/16 in opening trading on the New York Stock Exchange.<Picture: Link to top>

To: kanta who wrote (2518)	12/3/1997 11:58:00 AM
From: Geof Hollingsworth	Respond to of 18016

>This does not really have any similarities to what NN or CSCO are experiencing right now. < Maybe you are right about 3com, but what about CS, or the announcement at Altera that their sales into datacom and telecom slowed dramatically in November? I think it is wise to be cautious-I own both stocks and don't plan to sell, but I sure won't be buying until there is better visibility on things like the melt-downs in the Pacific Rim.

To: kanta who wrote (2518)	12/3/1997 12:29:00 PM
From: Jeffrey L. Henken	Read Replies (3) \| Respond to of 18016

I don't think NN has any intentions of selling UB. They are simply going to integrate what they can as successfully as possible. They are probably going to attempt to streamline manufacturing processes as much as possible and may be letting go part of the sales force as well. We are going to have to bite the bullet here for a while longer because there will be more write offs associated with letting these people go. However the WAN market is still extremely strong for NN. There have to be so many contracts yet to be announced with major telecom companies that it will make your head spin. That's why NN stays as strong as it does... So is it a good buy? I think so. One thing for certain I sure as heck wouldn't be selling at this time. Regards, Jeff