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

To: Serge Collins who wrote (9591)	2/12/1999 4:14:00 PM
From: Rob C.	Respond to of 18016

TORONTO, Feb 12 (Reuters) - Shares of Canadian networking firm Newbridge Networks Corp. <NN.N> slid lower in heavy turnover on Friday after reports the company had lost a lucrative contract. Newbridge stock fell C$2, or 5 percent, to C$38 on volume of more than 1.7 million shares, making it one of the most heavily traded issues on the Toronto Stock Exchange. In New York, Newbridge was down $1.63 to $25.50. Reports on Thursday said WIC Connexus, a unit of WIC Western International Communications Ltd. <WICb.TO>, had axed a contract worth up to C$500 million with Newbridge and France's Alcatel Alsthom <ALA.N>, originally unveiled in August of last year. U.S.-based Cisco Systems Inc. <CSCO.O> could end up getting the contract, according to sources close to the deal. The contract was for technology known as local multipoint distribution system communications. It uses microwave frequencies to provide a large bandwidth communication path between two buildings, or a building and a cell site, to allow the link of telephone service, Internet connections and more. WIC Connexus's plans might have been scaled back after parent WIC Western was taken over by Shaw Communications Ltd. <SCLb.TO>, sources said. Newbridge spokesman John Lawlor on Thursday said only that the contract had been changed. He added that the Kanata, Ontario-based company had not included significant revenue from the deal in its forecasts. David Beck, a TD Securities analyst, said the reports "definitely spooked some people." Another analyst, who declined to be identified, added that Newbridge shares should be down two to three times as much. "The worst possible scenario is to lose a contract to a competitor," he said. Beck said he had not factored in revenue from the WIC Connexus contract in his projections for Newbridge and said he sees the stock's drop as an opportunity to buy. "I think it's gone to a very attractive level." ($1=$1.49 Canadian) 941-8109, or e-mail lydia.zajc@reuters.com)) REUTERS Rtr 15:57 02-12-99 Copyright 1999, Reuters News Service Copyright © 1997 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. or such other notice as may be agreed by the parties in writing.

To: Serge Collins who wrote (9591)	2/12/1999 4:17:00 PM
From: zbyslaw owczarczyk	Respond to of 18016

Serge,WIC managment was replaced when Show Comm. bought them.They do not have money for such large project.Max Link will have dominant position and can expend its own network.Max Link, Central Texas and Korean Telecom do not have problems only WIC which managment was fired after takeover.All three vendores are receaving gears from NN. Since CSCO is dealing a lot with Show, speculation is they will pick up remaining samll fraction of the deal. Max Link is already charging custioners for services. At this point who do you belive,WIC whos managment was replaced by Show Comm. or Max Link, Central Texas which company are happy with NN gears. Zbyslaw