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

To: MikeM54321 who wrote (5287)	6/23/1998 3:44:00 PM
From: pat mudge	Read Replies (2) \| Respond to of 18016

Mike -- Pointing out the declines in NN's TDM business would be the same as pointing out MSFT's declines in Win95 once Win98 is released. True but beside the point. From the Q4/FY98 press release: <<<< Order intake exceeded shipments in the fourth quarter. This was the seventh consecutive quarter in which book-to-bill was greater than one. Backlog was the highest ever recorded in the Company's history. Packet-based products overall achieved record revenue in the quarter and accounted for 62 percent of total Company revenue. Packet-based product revenue was driven by double-digit percentage growth on a sequential basis and record revenue for wide area network (WAN) packet products. Both frame relay and ATM - including the VIVIDT switched routing solution - achieved strong growth in revenue. WAN ATM revenue in the fourth quarter of fiscal 1998 - led by the Company's flagship platform and the industry's best selling ATM system, the MainStreetXpressT 36170 Multiservices Switch ----- was more than double the level achieved in the previous year's fourth quarter. WAN packet revenue for fiscal 1998 was approximately 70 percent higher than in fiscal 1997. Revenue for the MainStreetXpress 36170 Multiservices Switch achieved record levels again in the quarter and for the full year, resulting in record ATM revenue for both the quarter and the year. This was the tenth consecutive record quarter of ATM revenue, coinciding with volume commercial availability of the MainStreetXpress 36170 platform. Fiscal 1998 revenue and order intake for the MainStreetXpress 36170 system were both approximately three times higher than in fiscal 1997. There were approximately 80 customers for the product in the quarter - including another 15 new customers -- and more than 100 new customers during the year, as the product strengthened its position as the leading ATM system for the wide area network. The total number of customers for the MainStreetXpress 36170 Multiservices Switch is now over 260. Sales of the frame relay capability on the MainStreetXpress 36170 system increased by approximately 50 percent sequentially in the fourth quarter, as carriers around the world continue to migrate frame relay and other traffic onto the unifying Newbridger ATM multiservices platform.>>> I talked to one of H&Q's telecommunications' analysts this morning and he commented that NN's TDM installed base is far from tapped out in terms of future sales. He also said networkers like NN and ASND will gain strength as the sector strengthens. He likes the synergies between COMS/Siemens and NN and says no matter who buys whom, it'll benefit them all. Not knowing how these things work, I asked what would happen if Siemens took out COMS and he said it would strengthen NN because of the MainStreet alliance. If what he says is true on a broader scale, then Alan Lutz will be a huge asset to the company. According to him Terry Matthews has many gifts but ingratiating himself with analysts isn't one. I also asked about getting definitive contract numbers and he said it's very difficult. Analysts base their numbers on sequential growth and extrapolate from there. Judging by NN's B-to-B and the fact they've already taken the hit for UBNet, this should bode well. I've been assured MCI, AT&T, Concert and BT are all major customers. Incidentally, who else has an ATM switch capable of 60 gigabits of data throughput? This is not a leading question. I honestly don't know. Thanks. Pat