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: micromike who wrote (9453)	2/8/1999 8:47:00 AM
From: zbyslaw owczarczyk	Read Replies (2) \| Respond to of 18016

Mike,as you heard from cc projection is conservative.NN assumes lower level od TDM(165) and near zero LAN.To make projection for Q4, WAN pecket has to grow 20% sequentially!!!.If TDM will rebound strongly to Q2 or Q3 level, then NN can recover O.05.At present time NN is not counting on strong TDM in Q4. Show me other ATM company which during the last 10 quarters had at least 10% sequential consistent growth in WAN packet(NN ATM was growing faster).Even ASND in Q3 had flat core growht with 25% in Q4 of the last year. Regards Zbyslaw

To: micromike who wrote (9453)	2/8/1999 10:10:00 AM
From: Ian@SI	Read Replies (1) \| Respond to of 18016

Mike, Do you believe that all companies have perfectly elastic manufacturing capabilities at all times under all conditions? Your queries seem to indicate either: 1. A desire to whine, bitch and complain; or, 2. A stubborn resistance to accept information; or, 3. A grudge against NN. On the off chance that you might really want a better understanding, here goes. 1. A demand increase of 45% Q/Q is unusual. It exceeded the most optimistic estimates of NN's planners. And the bulk of the orders seem to have arrived late in the Quarter. 2. Yes NN manufactures its own equipment. But it doesn't produce its own wafers from Silicon; and it doesn't have its own fabs; and it doesn't produce its own chips. Yes, NN has suppliers. And there just weren't enough ASICs in the pipeline to meet the demand for last quarter. Yes this happens with many companies. It's called a book to bill greater than 1, or an increasing backlog. In fact, in some sectors, companies deliberately attempt to keep a backlog of about 2 quarters to allow them to make most efficient use of their manufacturing capabilities. Believe whatever you wish. However, don't expect me to swallow your negativity which seems to be based upon some fantasy that management is not telling the truth; or are all incompetent.