Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: pat mudge who wrote (7724)	11/24/1998 10:08:00 PM
From: Ian@SI	Read Replies (1) \| Respond to of 18016

Pat, With the thanksgiving weekend in the states, I wouldn't be surprised to see lighter than normal volume for the rest of the week. It may be next week before we see the full reaction to this quarter's report. In any case, with the LU rumour, China Telecom, Global One and other unknown gems, I suspect the next few weeks will be nice ones to hold NN... FWIW, Ian.

To: pat mudge who wrote (7724)	11/24/1998 10:15:00 PM
From: Ian@SI	Respond to of 18016

Nice coverage by Reuters... Tuesday November 24, 9:04 pm Eastern Time Canada's Newbridge again matches earnings forecast TORONTO, Nov 24 (Reuters) - Telecommunications equipment and computer networking provider Newbridge Networks Corp. (Toronto:NNC.TO - news) (NYSE:NN - news) on Tuesday said earnings for its second quarter fell, but the profit matched analyst expectations for the third consecutive quarter, as revenues rose 7 percent to a record. Net earnings, stripped of unusual gains and charges, fell to C$47.6 million, or 27 cents a share, for the fiscal quarter ended Nov. 1, from C$57.99 million, or 33 cents, in the same period last year. When converted to U.S. dollars, profit excluding special items totaled 18 cents a share, matching the consensus of analysts surveyed by First Call, which tracks such estimates. That compares with profit of 23 U.S. cents in the second quarter of the previous year. Extraordinary items included the gain from the sale of its ACC affiliate. Non-recurring charges were related to the relocation of resources in its Asia-Pacific region, the write-down of certain investments and the closure of a business line. In the previous two quarters, earnings posted by the Kanata, Ont.-based company were also on target, after a string of three straight quarters with disappointing results. Newbridge ran into financial problems after buying UB Networks in early 1997, which lost money and forced the company to restructure and cut staff. Also, at one point sales of its key time division multiplexer (TDM) product looked rocky, but bounced back in the latest quarter. Alan Lutz, president and chief operating officer, pointed out that revenues were at record quarterly levels, rising 7 percent to C$457 million from year-earlier C$432 million. Lutz praised Newbridge's results to analysts in a conference call. ''There wasn't really any magic associated with this -- it was just hard work and good solid blocking and tackling that produced the results,'' he said. ''They did OK, but it's not the greatest turnaround in the world,'' said one analyst who declined to be identified. The company reported the results after stock markets closed in North America. Before the news, shares fell $1.60 to finish at C$38.75 in Toronto and dropped 94 cents to $25.13 in New York.