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

To: MD Bryant who wrote (9353)	2/4/1999 11:17:00 PM
From: julian hatfield	Read Replies (1) \| Respond to of 18016

Reality Check in order! Avoiding the truth is not the way to go ... you NN-aholics all know where the 45% sequential growth in ATM comes from - the 36170 upgrade that was late finally went out to the field at the beginning of last quarter. So, a strong but unsustainable upgrade cycle is what mgmt has got you folks holding on to as the silver lining in this mess. Bottom line: this company is losing out to its competitors as it stubbornly clings to an elegant, but expensive and over-engineered technology (ATM) hoping (increasingly in vain) that customers will come around. The only way this stuff moves is if its vendor-financed or given away at huge discounts .. They should admit that before it's too late. Personally, I think its a matter of time before we start seeing layoffs in Kanata. Too bad, but the sun is slowly setting on this former high-flyer. j.

To: MD Bryant who wrote (9353)	2/4/1999 11:24:00 PM
From: Peppe	Respond to of 18016

MD, Great analysis. I listened to the call as well and your summary most resembles my opinions on what's shaking at NN. I have to take this moment to congradulate you on selling your NN shares on Jan.29th. Great move...great call. Nothing wrong with taking the occasional profit ... Cheers, Peppe

To: MD Bryant who wrote (9353)	2/5/1999 12:31:00 AM
From: pat mudge	Read Replies (2) \| Respond to of 18016

I did indeed listen to the conference call, and I have some grave concerns about NN's ability to manage analysts expectations given their 2 tiered product line; TDM and ATM. This puts them under microscopic measurement by the analysts and means they can't bury shortfalls from product lines the way multiple product vendors can. TDM has been lumpy and Q3's shortfall only serves to emphasize how difficult it's been to manage expectations. I believe Alan's set future expectations low so there will only be upside surprises. I think the huge influx of orders from G1 is where their massive ATM order growth has come on the quarter. Alan listed SBC, BCE, Telekom South Africa, Telstra (Australia?), and one other for ATM sales. I don't see where your G1 conclusion came from. Management was doing some dodging in the conference call IMO, and a few times I thought Alan was a bit frustrated with the TDM questioning, and asking to put a consistent prediction plus or minus on the 165MM guidance he suggested. I thought he went out of his way to give thorough answers and didn't notice any frustration at all. NN definately needs to be digested and fast IMO.. Don't know what you mean. I say this in pain, as I have long been a solid supporter of NN and it's products. But there comes a time to look in the mirror. With 45% ATM growth sequentially and record backorders for their flagship products, I don't see how you can be so depressed. I'm thrilled with the growth and don't give a rat's ass about lumpy TDM sales. Granted it would be better if estimates were low enough not to disappoint. We also didn't see the suggested LMDS contract win eluded to be announced this quarter during the last conference call - perhaps that was snagged away by Nortel who last week eluded to several large wireless wins. Since LMDS isn't bringing in revenues, I'm in no hurry to see contracts announced. Once they're announced, analysts will start pressing for numbers. Why blow smoke? Incidentally, Alan listed Frontier and WinStar as wireless customers. Also three new product areas ready to announce. "ATM/IP WAN is high growth business, pleased with alternate carrier success and new product lines," Alan said. I think we have a lot to look forward to and as long as the core business is growing at record rates, I don't see any reason to lose sleep. Just my take. . . Pat