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

To: Glenn McDougall who wrote (5487)	7/9/1998 7:14:00 AM
From: Glenn McDougall	Respond to of 18016

<- Previous Next -> Message 2965 of 2991 Reply Current strategy. Itechnopeasant (M/Hamilton. ON) Jul 7 1998 3:05PM EDT I think some of the recent merger activity has everyone reevaluating the strategy. More takeovers are on the boards and everyone is scared of being left out. This release from Siemens about the UK market seems to indicate that Siemens knows what it wants, and what it wants includes a strong ongoing relationship with Newbridge. I suspect if someone made a hostile bid for Newbridge, Siemens would be the white knight. I think the Affiliate Network (Cambrian, Spacebridge etc on the Newbridge Webpage) probably gives us the information we need when thinking about future technical direction. >>>>> Munich, June 24, 1998 Siemens restructures its telecommunications activities in the UK: GPT stake sold to GEC - Siemens acquires GEC's stake in Siemens GEC Communication Systems - Siemens receives œ610 million as a balancing payment Two new companies formed: Siemens Telecom Networks and Siemens Newbridge Networks. Siemens AG, Berlin and Munich, and The General Electric Company plc.(GEC), London, have reached agreement on the future of their joint ventures in the British telecommunications market. Siemens will sell to GEC its 40% stake in GPT, its joint venture with GEC in public communications systems. At the same time, Siemens will acquire the remaining 50% (less one share) of the equity of Siemens GEC Communication Systems Ltd., its joint venture with GEC in private communications systems. In addition, GEC will make a balancing payment of œ610 million (more than DM1.8 billion) to Siemens. In a step to focus its telecommunications activities for public network operators in the UK, Siemens has formed two new companies, Siemens Telecom Networks and Siemens Newbridge Networks. Roland Koch, member of the Managing Board of Siemens AG and President of the Public Communication Networks Group, commented: "With this move, Siemens is sharpening the focus of its telecommunications activities in order to achieve clear market positions. Our long-term interest lies in high-growth telecom fields such as mobile telephony and broadband data transmission technology - and this on a worldwide basis. Our global competitiveness depends on these growth sectors and on our position as a global player capable of providing comprehensive systems. This is why we are intensifying our involvement in these high-growth telecom fields, and pushing development in promising global telecom fields to reflect market trends, like the increasing convergence of voice and data transmission technology and the booming mobile telephony sector." As previously announced, Siemens is currently restructuring its information and communications business segments. Slated to take effect on October 1, 1998, the reorganization aims to better exploit synergy potentials by clearly focusing the expertise of both segments. SGCS, henceforth a wholly-owned Siemens subsidiary, offers a broad spectrum of solutions and services and has succeeded in expanding its position in the private telecommunications sector to become the second-largest provider of private communications systems in the UK. As a complete solutions provider, SGSC offers turnkey telecommunications systems, corporate networks, and innovative applications such as call centers, mobility solutions for corporate campuses, and video conferencing systems. SGCS will continue to sell Hicom, Siemens' globally successful product family, and to support GPT's iSDX/Realitis product families, which already have extensive installed bases. "The new constellation will allow Siemens to further strengthen the company's presence in the very attractive British telecommunications market", said Koch. "The formation of the new companies Siemens Telecom Networks and Siemens Newbridge Networks will enable Siemens to expand its business with public network operators in the UK." Food for thought Regards Glenn

To: Glenn McDougall who wrote (5487)	7/9/1998 9:04:00 AM
From: Another Investor	Read Replies (1) \| Respond to of 18016

Glenn, I find that Newbridge and Nortel periodically have hiring freezes. Nortel had one recently and Newbridge had one, I believe, in the past 2-3 years. Stories like this don't bother me anymore since I've been through it myself. I used to work for Nortel. I guess when you hire at the pace that Nortel and NN have been, you need a bit of a pause to digest the new headcount and allow your revenues to catch up. AI

To: Glenn McDougall who wrote (5487)	7/9/1998 11:26:00 AM
From: pat mudge	Respond to of 18016

Glenn -- The hiring slow-down was outlined in the dirge-like conference call back in February or March --- when the UBNet fiasco hit the fan. This is not news and any journalist making it so is desperately in need of a vacation. Give me that guy's phone number. <G> Later -- Pat

To: Glenn McDougall who wrote (5487)	7/9/1998 1:10:00 PM
From: Doug	Read Replies (1) \| Respond to of 18016

Glenn and all: I believe that the rev/employee is a better ratio to use to determine NN's workforce productivity. The following questions are pertinent to that announcement. a: What is the impact on the rev/employee due to the postponement.? b: What is the expected sales/employee when staffing increases become inescapable.? c: Has the overall growth in the market also been delayed by a year and are there any studies to indicate that.? d: If the market growth has not been delayed what is the extent of missed oppurtunities.? I look forward to your comments on the issues connected with postponing the add-ons.