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

To: Tunica Albuginea who wrote (4398)	5/6/1998 8:46:00 AM
From: Ian@SI	Read Replies (1) \| Respond to of 18016

Here's the whole Financial Post Clipping for archive purposes. Wednesday, May 6, 1998 Newbridge manages to get foot in AT&T door By KEITH DAMSELL Technology Reporter The Financial Post ÿNewbridge Networks Corp. has been enlisted to help build AT&T Corp.'s new worldwide network service, a confidence-building first major deal with the U.S. telecommunications giant that could mean millions in revenue for the Ottawa equipment maker. ÿ"It's marvelous news," said Iain Grant, managing director of the Yankee Group in Canada, a high- tech consulting firm based in Brockville, Ont. ÿ"It's another endorsement for Newbridge's approach." ÿNewbridge will supply products to enhance AT&T's sprawling managed-bandwidth service, which offers voice, image, video and data services. ÿBy the end of this year, the service will be available to all U.S. customers and is then expected to be offered in foreign markets, including Canada. ÿFinancial details were not released, but AT&T has "tremendous growth expectations," said spokesman Jim Byrnes. ÿRevenue from the developing network hit US$650 million last year and is targeted to reach US$4 billion in 2002. ÿAs a result, it is likely the supply agreement will be "a significant revenue generator" for Newbridge, said Todd Coupland, an analyst with CIBC Wood Gundy Securities Inc. in Toronto. ÿThe analyst has a strong "buy" rating on the stock and a 12-month target of $60. ÿRumors of a big contract have helped push Newbridge shares (NNC/TSE) up from a two-year low of $27 on Feb. 3. ÿThe stock rose $1 to close at $45.80 yesterday. ÿThe deal means several big telecommunications vendors lost the race to supply AT&T, including Cisco Systems Corp. of San Jose, Calif. ÿCisco builds traffic switches for the AT&T network, software that caused an outage last month in the communication giant's high-speed data network. ÿAT&T and Cisco are working to change the software to insure the problem doesn't occur again. ÿDespite Cisco's software setback, Byrnes said it was a "wrong conclusion" to suggest Newbridge had replaced the incumbent as AT&T's network provider of choice. In the future, it's likely AT&T will use the technology of both rivals to meet its service needs, he said. "They are not mutually exclusive companies." ÿCisco was not available for comment. ÿCisco shares (CSCO/NASDAQ) fell US$15/16 to US$735/8 yesterday. AT&T stock (T/NYSE) was down 7/8 to close at US$613/16 .