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

To: Mighty Mizzou who wrote (6187)	8/26/1998 10:55:00 AM
From: Rob C.	Respond to of 18016

Another version of the release. Silly question here, but has it hit the Dow Jones yet? TORONTO, Aug 25 (Reuters) - Computer networking firm Newbridge Networks Corp. <NNC.TO> <NN.N> posted earnings on Tuesday that equaled street predictions and unveiled a US$300 million, 3-year deal with U.S.-based telecommunications firm SBC Communications Inc. <SBC.N> "We think we've made the first step in transition," said Alan Lutz, who earlier this year took over as president and chief operating officer of the company, based near Ottawa. "We like to think we've turned the corner in providing dependable results." The company was on the mark for its fourth quarter earnings, finished April 30, but had previously posted three straight quarters of disappointing results. Profit for the first quarter of fiscal 1999, ended August 2, reached C$35.5 million or C$0.20 a share compared to 1997 earnings of C$64.4 million or C$0.36 a share for the three-month period ended August 3. In U.S. dollars, Newbridge earned $0.14 versus $0.26. According to New York-based research firm IBES, analysts had forecast, on average, U.S. earnings of $0.145 a share. The results were posted after equities trading ceased in North America. Before the numbers, shares in Newbridge Networks slipped C$0.30 to C$36.30 on the Toronto Stock Exchange. In New York, the stock dipped US$0.06 to US$23.56. Gurinder Parhar, analyst at brokerage HSBC James Capel, praised Newbridge's results. "I'm happy that they met the numbers," he said. "The stock's going to run (once markets reopen.)" The deal with SBC, which will see full details revealed on Wednesday, proved to be a bonus, Parhar added. "While it's not a billion dollars, it ensures future growth in the switching portfolio." Both Lutz and founder, Chairman and Chief Executive Terence Matthews, who spoke to analysts on a conference call, were also enthusiastic about the possibilities for future contracts in another product, technology for local multipoint communications systems, or LMCS. Last week Newbridge announced itwas chosen as suppliers to help Canadian wireless broadband firms MaxLink Communications Inc., and WIC Connexus, part of WIC Western International Communications Ltd. <WICb.TO>, build wireless networks. The two would spend up to C$900 million in the next four years. Matthews noted that the market for LMCS was largely untapped world-wide. ($1 = $1.55 Canadian) 941-8109 or lydia.zajc@reuters.com)) REUTERS Rtr 20:51 08-25-98 Copyright 1998, Reuters News Service

To: Mighty Mizzou who wrote (6187)	8/26/1998 10:57:00 AM
From: MD Bryant	Read Replies (1) \| Respond to of 18016

People here seem to be a little nieve. A contract is a contract; most contracts are BINDING. That is why a signature is required. 3 years in a very short time in data networking as opposed to your sysnopsis of 300 years. Carriers upgrade when they have to; and the types of mass upgradges that are happening today don't come often, and won't. The emergence of computers and the internet has created this market - don't kid yourself. Make no mistake, Newbridge is a FIERCE competitor. All you need do is listen to competitors speak of TM, or listen to TM himself, and you know he has an understanding, and a passion for the technologies his company is working on. That passion and drive, is what keeps NN's technology ahead of the pack.

To: Mighty Mizzou who wrote (6187)	8/26/1998 11:01:00 AM
From: pat mudge	Read Replies (2) \| Respond to of 18016

This is in no way a guaranteed contract. Three years is like 300 years in data networking. Competition is FIERCE and products and trends are constantly evolving. If Lucent buys ASND/SRA, this contract will be in serious jeopardy. Cisco and LU will lock horns and NN will be squeezed out. Well, no, nothing's 100% certain. Afghanistan might attack the U.S. and all our children have to learn Afghani. However, the chances of that happening are not real big. Nor is losing a signed contract with SBC. We're not dealing with shoot-from-the-hip fly-by-nights. We're talking study-it-till-the-cows-come-home telcos. Yes, competition is fierce and Newbridge just went to the head of the class. There is much that can be debated, much that's far more tenuous, but not the SBC contract and the products behind it. As a matter of fact, if we want to speculate, then let's say NN just became a far more appealing take-out target than ASND. All IMHO, of course. Later -- Pat