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

To: Trader Bob who wrote (9308)	2/4/1999 4:26:00 PM
From: Chris Stovin	Respond to of 18016

Thursday February 4, 4:15 pm Eastern Time Company Press Release Newbridge Networks Announces Preliminary Estimates of Financial Results for Third Quarter Fiscal 1999 KANATA, ONTARIO--Newbridge Networks Corporation today announced preliminary estimates of financial results for the third quarter of fiscal 1999, which ended January 31, 1999. Revenue for the third quarter is expected to be approximately $450 million, an increase of 25 percent compared with revenue of $359 million for the third quarter of fiscal 1998 and approximately equal to the previous quarter. Fully diluted earnings per share for the quarter are expected to be approximately 71 cents under Canadian GAAP, or 46 cents U.S. under U.S. GAAP, compared with a loss of 82 cents per share in the third quarter of fiscal 1998. Net earnings for the quarte r, excluding non-recurring items, are expected to be approximately equal to the prior quarter, or more than 150 percent higher than earnings of 10 cents per share (7 cents U.S.) in the third quarter of fiscal 1998. These net earnings per share are expec ted to be approximately 5 cents U.S. below investment analysts' published expectations. ''While we are disappointed in the shortfall with respect to analysts' expectations, a careful analysis of the quarter's performance confirms the underlying strength of the Company,'' said Alan Lutz, President and Chief Operating Officer, Newbridge Network s. ''The economic slowdowns in Latin America and Asia negatively affected sales of our mature product lines. However, ATM equipment orders increased by approximately 45 percent compared with the preceding quarter, significantly exceeding the historical 10 percent sequential rate of growth in WAN packet orders, and exceeding our short-term ability to fulfill these orders. I remind you that IP + ATM is the Company's long-term growth engine. We could not fully match our available parts on hand to the la rge upswing in customer demand, preventing us from making up for the economic slowdowns in Latin America and Asia. We enter the fourth quarter with record backlog. ''SG&A expenses decreased in the quarter, allowing us to generate approximately the same earnings from operations as last quarter. The Company's cash balance improved significantly in the quarter and is now in excess of $900 million. ''We expect fully diluted earnings per share for the first nine months of fiscal 1999 to be approximately $1.20. We do not expect to recover the 5 cents U.S. shortfall in net per share earnings from operations, relative to analysts' expectations.'' This news release may include certain forward-looking statements that involve risks and uncertainties. Actual results may differ materially from results indicated in any forward-looking statements. The Company cautions that, among other things, in view o f the rapid technological changes in the networking industry, if technologies or standards supported by the Company's products or common carrier service offerings based on the Company's products become obsolete or fail to gain widespread commercial accep tance, the Company's business may be adversely affected. Additional information identifying risks and uncertainties is contained in the Company's most recent Form 10-Q quarterly report and Form 10-K annual report filed with the SEC. Newbridge Networks (NYSE: NN - news; TSE: NNC - news) designs, manufactures, markets and services networking solutions to organizations in more than 100 countries. The Company leverages its relationship with a growing family of Newbridge Affiliate companies and strate gic alliances with Siemens and 3Com Corporation to deliver seamless, end-to-end solutions. Newbridge customers include the world's 300 largest telecommunications service providers and more than 10,000 corporations, government organizations and other ins titutions. Founded in 1986, the Company employs more than 6,000 people on six continents. News and information are available at www.newbridge.com. Newbridge, logo are registered trademarks of Newbridge Networks Corporation. MainStreetXpress is a trademark used by the Siemens / Newbridge Alliance for comprehensive solutions in broadband communication. No agency relationship, partnership, or joint ownership of a legal entity is to be inferred or implied by the term alliance. Management will be hosting a conference call on Thursday, February 4th at 5:30 p.m. Eastern Standard Time. Should you wish to listen to this teleconference calling from within North America, please call 800-553-3709. International callers please dial 303-267-1002. Please call in 10 minutes prior to the start of the call. An instant replay of the call will be available for 72 hours. To access the instant replay within North America please dial 800-625-5288; international callers please dial 303-804-1855 passcode 501852.