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

To: pat mudge who wrote (5286)	6/23/1998 1:53:00 PM
From: MikeM54321	Read Replies (1) \| Respond to of 18016

Sales of circuit switched networking products in the third quarter of fiscal 1998 declined 31% relative to sales in the third quarter of fiscal 1997 and sales for the first nine months of fiscal 1998 declined 13% relative to sales in the comparable period of fiscal 1997. Sales of these networking products have been and are expected to be subject to potential declines and variability as customers increasingly adopt packet technologies, not only in North America but in the rest of the world as well. Pat, Appreciate all your posts concerning NN on this thread. In reading through the SEC filings, I came across the above statement from NN. Newbridge was heavily involved with the traditional, "old iron," circuit switched technologies. Understandably they have, and will become a leading packet switched, ATM provider of carrier class equipment. But in the meantime they have this old circuit switched equipment that has to be phased out, while the newer ATM stuff comes online. Considering that quite a bit of their revenues still come from the old circuit switched equipment, don't you think it will be at least 2 to 3 quarters before they start really cranking up the revenue stream with predictable earnings? I understand a lot of older traditional telecom equipment suppliers also have to dig out of this situation. Q4's 10Q from Newbridge is not available yet, but I would think it would have something similar to the above. I'm not saying it shouldn't be done, but just wanted to know what feelings you (or any others) have on it, specifically in regards to Newbridge Networks. Or did you happen to do any estimates on how much the older circuit switched equipment was as a percentage of Q4 total revenue? Thanks, MikeM(From Florida)