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

To: Thomas Scharf who wrote (3024)	2/3/1998 1:21:00 PM
From: samson	Read Replies (1) \| Respond to of 18016

I agree, just look at Micron Technology. I see, like someone else also mentioned here, a lot of similarity between NN and MU. The share prices of both were dropping for a long period of time after analysts downgraded them.

To: Thomas Scharf who wrote (3024)	2/3/1998 2:58:00 PM
From: Lamont	Read Replies (1) \| Respond to of 18016

Here are some downgrades for today. Downgrades Company Symbol Brokerage Firm Downgrade from: Downgrade to: ---------------------------------------------------------------------- Newbridge Networks NN Cowen & Co Strong Buy Buy Newbridge Networks NN JP Morgan Buy LT Buy Newbridge Networks NN BT Alex. Brown Strong Buy Mkt Perform Newbridge Networks NN Goldman Sachs Recomm. List Mkt Outperform

To: Thomas Scharf who wrote (3024)	2/3/1998 5:44:00 PM
From: Maverick	Respond to of 18016

Shares of this telecommunications-networking technology concern are expected to come under selling pressure this morning after the stock was halted late in yesterday's trading session for news that are not pleasing to investors. After the close, Newbridge announced that its fiscal 3Q results would come in well below market expectations. At the same time, the company would take a restructuring charge in order to close facilities associated with its local are network operations, including inventory write-downs and the write-off of goodwill associated with last year's purchase of UB Networks. According to Newbridge, it expects 3Q earnings to come in at $0.07 a share, well below the mean estimate of $0.24 a share, and year-ago profit of $0.27 a share. Revenues for the period are also projected at around $247.3 million, 25.8% below year-ago level of $333.27 million and on a sequential basis, significantly below 2Q revenue of $432.17 million. According to Newbridge, the "significant sequential decline" is prompted by the sharp drop in revenues for time division multiplexer (TDM) systems. TDM revenues in the latest period were affected by business conditions outside of North America. This is another way of saying that Asia probably had an impact on results as conditions were also complicated by its UB Networks situation which required a significant amount of management time and attention. Since October, the stock has been on the skids, falling from a high of $69 3/8 and setting new lows in the past week. With yesterday's close of $25 1/2, and with ratings and earnings reductions expected to come in bunches from Wall Street later today, the stock is expected to establish another low today. Already, Goldman Sachs has removed the issue from its "recommended list" and now rates the stock a "market outperform," while reducing earnings estimates as well. This is just the beginning of what is likely to be a very ugly day for this telecommunications-networking issue. From Briefing.com