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

To: Ian@SI who wrote (7002)	10/15/1998 2:36:00 AM
From: pat mudge	Respond to of 18016

With a 70 node network and probably at least 2 36170s per node, does this deal look worthwhile? Any deal with AT&T and MSFT would be worth while just to drop their names. :) Now, for a look at another player in the networking industry, check out Xylan's news: <<< 10/14/98 Dow Jones News Serv. 18:52:00 Dow Jones News Service Wednesday, October 14, 1998 Xylan CEO Sees 4Q Sales Outpacing Networking Indus Avg BUENA PARK, Calif. (Dow Jones)--Xylan Corp. (XYLN) expects fourth-quarter revenue growth to continue to outpace computer networking industry averages, its chief executive said. "We expect strong continuing growth" in the direct and value-added-reseller sales channels, Chairman, Chief Executive and President Steve Kim said in a conference call following Xylan's third-quarter earnings report. He also said he expects fourth-quarter operating expenses to be maintained at third-quarter levels. Given annual industry growth of about 24%, Xylan should post sequential revenue gains exceeding 5%-6%, added Chief Financial Officer Dale J. Bartos. Third-quarter revenue, reported after markets closed on Wednesday, was $91.1 million. Bartos also guided 1999 revenue estimates into the $450-460 million range, in the lower end of analysts' published figures. Third-quarter net income of 22 cents a diluted share for the Calabasas, Calif., company matched Wall Street's expectations. Some market observers were expecting Xylan to report a disappointing third quarter because the company warned in July that sales to its biggest customer, International Business Machines Corp. (IBM), would be down sequentially. A profit warning by Xylan's other major customer, Alcatel SA (ALA), also dimmed the Street's profit hopes. However, the company said, a 26% sequential increase in direct and value-added-reseller, or VAR, sales lessened the company's dependence on those two customers. Xylan plans to continue to broaden its customer base. Analysts on the call expressed some surprise with such a strong jump in VAR sales and wondered if Xylan's VAR channel had absorbed some products sold during the quarter. "We believe (the VAR channel) is fully balanced and well-positioned for the fourth quarter," Bartos said. Very few VAR partners stock inventories of Xylan's products, added Kim. "We usually ship directly to the end user," he said. -By Anthony Palazzo; 714-739-5538; tony.palazzo@cor.dowjones.com (END) DOW JONES NEWS 10-14-98 06:52 PM

To: Ian@SI who wrote (7002)	10/15/1998 12:14:00 PM
From: Greg Spendjian	Read Replies (1) \| Respond to of 18016

Maybe I have missed something. Why are we so sure that the ATT-MSFT contract involves NN? Thanks in advance. Greg

To: Ian@SI who wrote (7002)	10/15/1998 8:49:00 PM
From: pat mudge	Read Replies (1) \| Respond to of 18016

Hey, we made Down Jones! <<<< Dow Jones Newswires -- October 15, 1998 Newbridge Up 13%; Benefits From Sector Move, New Pacts By BEN DUMMETT Dow Jones Newswires TORONTO -- Newbridge Networks Corp.'s (NN) stock is higher Thursday, even though the networking company hasn't made announcements. Analysts said the rise in Newbridge's stock is partly due to gains in several networking stocks. For instance, on Nasdaq Cisco Systems Inc. (CSCO) has climbed 4 5/8 to 56 3/4, Ascend Communications Inc. (ASND) has risen 3 5/16 to 46 1/4 and Fore Systems Inc. (FORE) is up 1 5/8 to 12 1/16. In Toronto, Newbridge is up 3.30, or 13.3%, to 28.10 on nearly 1.9 million shares. The sector is benefitting from renewed confidence that the bigger telecom equipment manufacturers still have an appetite for acquisitions following Alcatel's (ALA) purchase earlier this week of closely held Packet Engines Inc. in a deal valued at US$315 million, said David Beck, analyst at TD Securities Inc. Speculation that Lucent Technologies Inc. (LU) will soon start making acquisitions also is contributing to this confidence among investors, Beck added. More specifically, Newbridge's relatively inexpensive stock price, which is down about 68% from its 52-week high, and signs that the Kanata, Ont.-based company is on the road to recovery could be giving the stock an added lift, analysts said. James Kedersha, analyst at SG Cowen Securities Corp., notes that Newbridge is showing signs of gaining on Ascend in winning contracts for asynchronous transfer mode (ATM) networking equipment. He notes that Newbridge's has won four such contracts since August. In addition, Kedersha said he soon expects Newbridge to announce another deal with BellSouth International, a unit of BellSouth Corp. (BLS). A Newbridge spokesman declined comment. Though the expected BellSouth International contract isn't big, it's another indication that Newbridge is holding its ground against the competition, said Kedersha. -By Ben Dummett; 416-943-7807; ben.dummett@dowjones.ca