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

To: zbyslaw owczarczyk who wrote (9384)	2/5/1999 12:14:00 PM
From: Doug	Read Replies (1) \| Respond to of 18016

Z.O: It would help if you can show any Numbers that prove nett Margins for non TDM products are improving.

To: zbyslaw owczarczyk who wrote (9384)	2/5/1999 12:14:00 PM
From: Ian@SI	Respond to of 18016

Z., I've been out most of the morning. So far I haven't seen a single downgrade of NN today. Perhaps CNBC has shamed the analysts by referring to them as "penguins". To me, this seems to be very encouraging. Revenues and earnings shortfall is in the order of 10%. I wouldn't be surprised to see NN recover to within 10% of its recent high (near 35-36 US) prior to earnings release. My 2¢ worth. Ian.

To: zbyslaw owczarczyk who wrote (9384)	2/5/1999 1:12:00 PM
From: larry pollock	Read Replies (3) \| Respond to of 18016

There is too much attention being directed toward the fall-off in TDM sales. The more important issue is that NN failed to forecast the demand for the ATM sales. ATM products are supposed to be NN's growth engine and, yet, there was not enough inventory on hand. The bottom line for this quarter is that Newbridge got caught with their pants down. Perhaps the underlying problem rests with poor internal forecasting procedures. The discussion with the drop-off in TDM sales is really a side-show issue. We have been through this previously with TDM sales. Mr. Lutz's avoidance of talking about the quarter's gross margin is disturbing. If NN knows the revenue level, buy product line, and the net income for the quarter, an approximation of the quarter's gross margin should have been known. With all of the detail provided during the conference call, the refusal to offer a gross margin level is not a good sign.