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

To: pat mudge who wrote (4421)	5/7/1998 2:01:00 PM
From: Techwatch	Read Replies (5) \| Respond to of 18016

Observations: ATT is not using NN for the ATM network. Ascend won that network. ATT is not replacing the Cisco/Stratacom Frame Relay Network with NN. Infact, ATT is not even putting the NN hardware in the WAN - the ATT press release states that the NN equipment is for the customer premises. This is not a new network - this is a Service from ATT Solutions NN will not be the sole source of network hardware. ATT will announce new vendor partners for this Service. Partners may also include Cisco, Bay, Ascend NN will not see "significant" revenue from this deal. Infact, revenue may not be realized until well into 1999. ATT Solutions said that BMS is in "customer trials" now and should be generally available "later this year". There are only 2 - 5 customers testing the service. NN couldn't put a $$ figure on the press release because it's impossible to predict the number of customers that ATT will sign up - and if the ATT Solutions group recruits more Program Partners, there is no guarantee that NN will see any $$. NN couldn't articulate the # of years this deal will cover because if the service fails, ATT could kill BMS tomorrow. This is not a "foot in the door". NN has always had free access to the "door". They had a fair shot at the frame relay network, the ATM network and at the IP. There are some intelligent members of this thread whose input and observations have a lot of value (Pat). But there are too many naive fools who base their investment decisions on company press releases that have a lot of words but don't say anything and the hype found on the NN web site. When they see a magical mystery announcement like this one, they can make false assumptions and bad investment decisions. I'm concerned that there were no significant announcements at Interop. Even Pat didn't come back with any substantial news -other than the booth was crowded with people trying to win a car. Where are the new product announcements, where are the real contracts? Why didn't NN bring the 36190 "terabit???" switch to the show? The 36190 has shown up at shows that were far less important.