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

To: Luc Glinas who wrote (6667)	9/23/1998 10:07:00 AM
From: Ian@SI	Read Replies (1) \| Respond to of 18016

Very interesting change in attitude coming from MacLellan of Kearns... Perhaps hell does freeze over. ;-) Wednesday, September 23, 1998 Newbridge unveils large contract By JILL VARDY Technology Reporter The Financial Post ÿOTTAWA - Shares of Newbridge Networks Corp. jumped yesterday on news of a large sale and anticipation of more good news at its annual meeting today. ÿThe company has won a contract to supply high-speed telecommunications equipment to Telkom South Africa, it said yesterday. Newbridge will get the "lion's share" of US$160 million set aside for upgrading the South African phone system over the next two years. ÿBut that deal is clearly not all the investment community is expecting from Newbridge, which wraps up a conference with 250 analysts today before its annual meeting this afternoon. The stock (NNC/TSE) jumped yesterday by $2.35 to $33.30. ÿWhen asked if more announcements could be expected at today's meeting of analysts and Newbridge shareholders, chairman and CEO Terry Matthews said, "I always like to have good things to share with people ... this company has all kinds of new stuff to tell people about." ÿAt a news conference to launch a new high-speed wireless Internet service in Ottawa, he said Newbridge is ideally positioned to grab a large share of the infant market for equipment on which companies will build new local multipoint communications services. "This is a huge play for us," he said, noting his firm's equipment is ideally suited for LMCS networks, which send data signals at high frequencies. Newbridge equipment is the core of the new service unveiled yesterday by MaxLink Communications Inc., one of two firms licensed to provide LMCS service in Canada. ÿBut most analysts at today's meeting will be quizzing the firm on its ability to remain a major player in its traditional lines of business - supplying high-speed equipment to phone companies and other public carriers. ÿ"This contract in South Africa is definitely a positive for Newbridge and they deserve credit for that," said Robert MacLellan, technology analyst at Kearns Capital Inc. and one of the few analysts who don't rate Newbridge stock a "buy." "But there are significant strategic and competitive issues facing Newbridge that no single contract in South Africa or anywhere else can alleviate." ÿExecutives will also face questions about their company's ability to remain independent in an industry whose major players are rapidly consolidating. More contract wins, if they are announced today, will help satisfy their queries, along with concerns about Newbridge's ability to post regular profit increases. ÿ

To: Luc Glinas who wrote (6667)	9/23/1998 7:19:00 PM
From: Don Johnstone	Read Replies (1) \| Respond to of 18016

Yes, I attended the meeting,had a couple of sandwiches and a coffee before the meeting started, and a glass of wine after, and those were the highlights. No big news that I could make out. TM and AL were very impressive in looking to the future. Great products, great prospects, no quick fixes. Slow and steady progress will win the race. And let there be no doubt, they intend to win. Very upbeat! $225 million in cash available and if it makes good business sense they will acquire any business needed, even in light of UB. As TM said ,"If you don't take chances" in this business, "you're dead"! Batting 1000 in LMDS, have an 18 month lead, and are not holding back. Tremendous prospects in that field. I'm sure Pat's report and analysis will be in more depth than this but that was how I saw things. Cheers, Don