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

To: nick cash who wrote (5743)	7/27/1998 2:58:00 PM
From: pat mudge	Read Replies (2) \| Respond to of 18016

News from affiliates: <<<<VoCAL Technologies, Ltd. Licenses Fax-over-IP and Voice-over-IP Software to ACC<<<< newsalert.com <<<INTELSAT Awards Terminal Study Contract to SpaceBridge>>> newsalert.com <<<<TimeStep Secures Macintosh Remote Access Users With The Introduction Of Mac IPSec Client >>> newsalert.com Incidentally, Alan's going to have an uphill battle with analysts between now and earnings. I have the Warburg Dillon Read report by Nikos Theodosopoulos here beside me and while he praises his plans for reorganizing the company, he rates it a HOLD. We view the increasing level of control by Allan [sic] Lutz as a positive for Newbridge as we believe he will increase accountability at Newbridge and develop a better organizational structure. For example, we believe that Alan has also developed a plan to reduce yearly operational expenses by $C30-$C35 million which will add to earnings visibility and perhaps some upside to current estimates. We are encouraged by the initial efforts of Alan Lutz. These steps combined with some rationalization of SG&A expenses of $C30-$C35M and current valuation will probably limit the downside on the stock. We believe, however, that Newbrige needs to improve its ATM win rate and its ATM product portfolio features as it has fallen behind the competition in the past six months in order to get stock moving up again on a consistent basis. No easy victories, that's for certain. Pat