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

To: micromike who wrote (2675)	1/8/1998 6:28:00 PM
From: lin huan chen	Read Replies (3) \| Respond to of 18016

Dow Jones Newswires -- January 8, 1998 Newbridge Down Sharply; Analyst Cuts Earnings Forecast By Ben Dummett TORONTO (Dow Jones)--Newbridge Networks Corp.'s (NN) stock is down sharply Thursday, after TD Securities Inc. technology analyst David Beck cut his fiscal 1998 earnings projection for Newbridge. In addition, on Wednesday market rumors began circulating that Kanata, Ont.-based Newbridge was guiding analysts to sharply reduce their earnings projections for the current fiscal year ending April 30 and for fiscal 1999. These rumors have also hurt the stock, said Rob MacLellan, technology analyst at SBC Warburg Dillon Read. But "the rumors are categorically untrue," said MacLellan, who talked with Newbridge officials Wednesday night and Thursday morning. MacLellan said he plans to issue a research note later Thursday to help dispel the rumors and to reiterate his "buy" recommendation on the stock. A Newbridge spokesman said the rumors are "untrue. MacLellan said Beck's decision to "fine tune" his earnings projections compounded concerns fueled by the market rumors. Beck wasn't immediately available for comment. In his reseach note published earlier Thursday, Beck said he still rates Newbridge a "buy," despite reducing earnings estimates for the company. In the note, Beck cut his profit estimate for Newbridge's fiscal 1998 to C$1.49 a share from the previous estimate of C$1.54 a share, after reducing his fiscal 1998 sales projection for Newbridge's time division multiplexer, or TDM, business to C$776 million from C$805 million. A review of pessimistic market growth forecasts for TDM sales prompted the reduction in the sales estimate, Beck said in the note. For the same reason, Beck cut his TDM sales estimate for fiscal 1999 to C$783 million from the previous estimate of C$873 million.