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

To: Peppe who wrote (4810)	6/3/1998 12:20:00 AM
From: Brett Nelson	Read Replies (1) \| Respond to of 18016

From TSC: Top Stories: Update: Newbridge Fourth Quarter on Target By Kevin Petrie Staff Reporter 6/2/98 7:28 PM ET Newbridge Networks (NN:NYSE) stirred just a little excitement Tuesday evening. The Canadian networker met Wall Street's consensus estimates for its fiscal fourth quarter, earning 13 cents a share before charges, down from 28 cents a year earlier. Revenue fell to C$395.2 million from C$441.3 million a year ago. While Newbridge pegged the consensus estimate, investors reacted mildly to the news. The stock traded at 30 at about 5 p.m., according to Reuters Instinet -- the same closing price after a hefty rise of 2 1/2 during official trading hours. The company issued its earnings press release late, which might account for some of the slow reaction. The book to bill was greater than 1, a bullish signal that units ordered exceed sales billed. Sales of Newbridge's flagship 36170 switch for phone carriers steadied the company after several disappointing quarters. So-called packet-based products, which include the 36170, comprised a healthy 62% of revenue. Meanwhile Newbridge's aged technology called time division multiplexing, or TDM, bounced mildly from last quarter's terrible levels, although the company gave no figures. Newbridge achieved gross margins of 59.6%, even with the prior quarter. Some bulls had hoped for an increase. Newbridge also reshuffled its brass a bit. Peter Charbonneau has become vice chairman, leaving the president and COO spots open for Alan Lutz, a veteran of Compaq(CPQ:NYSE).