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

To: pat mudge who wrote (9613)	2/13/1999 7:49:00 AM
From: nord	Read Replies (1) \| Respond to of 18016

I want to thank all those that sold shares today. While the old portfolio took a hit I took the opportunity to add to my position based IMO on non fundamental [scare] news of loss of revenue that was never booked. The fundamentals of the company..the technology and managment have not changed nor have the prospects for broadband rollout. The fact that one financially strapped vendor was unable to buy a system means one less competitor for services for NNs other customers. The answer lies in where we will be price wise in a year, once the big contracts and announcements are coming to the bottom line and news wires. fwiw thought this was interesting think LSI is really getting its act together focusing on embedded broadband chip applications. LSI Logic Eases Quality of Service Implementation With Low Power, High SpeedATM Product MILPITAS, Calif., Jan. 26 /PRNewswire/ -- LSI Logic Corporation (NYSE: LSI) has announced its continued commitment to the Asynchronous Transfer Mode (ATM) market with the introduction of the ATMizer(R)II+ device, an enhanced version of its second-generation ATM standard product optimized for high-speed ATM Wide Area Network (WAN) and Local Area Network (LAN) applications. The ATMizer II+ device has already gained significant design wins among some of the biggest names in the networking equipment business. At Cisco Systems Inc., San Jose, Calif., the ATMizer II+ is an important part of ATM interfaces in many of the company's routers and switches, according to Yakov Zbinovich, Manager Hardware Engineering in Cisco's Enterprise Line of Business. "It provides the flexibility and power we need to support the ever increasing and changing demands of the applications we support." Newbridge Networks, Kanata, Ontario, has integrated the ATMizer II+ into its industry-leading MainStreetXpress(TM) 36170 Multiservices Switch. The switch is the cornerstone for the Newbridge(R) portfolio of multi-service, multi-access solutions. It offers a comprehensive suite of advanced services, such as frame relay, LAN interconnections, IP, circuit emulation and cell relay. "Newbridge selected the ATMizer II+ because its hardware features and RISC core provide the versatility required to meet the highly varied and rigorous demands placed on our switches," said Ric Hearn, Manager, Cell Relay Hardware Development at Newbridge. The single-chip ATMizer II+ device supports full-duplex transmit and receive operation at OC-3 rate (155 Mbits/sec). Its embedded high-performance MiniRISC(R) CPU, hardware Segmentation-And-Reassembly (SAR) Engine, and enhanced Rate Scheduling Unit with multiple calendar tables, offers telecom and networking equipment designers both a flexible and high-performance ATM solution to implement Quality of Service (QoS). ATM has captured the interest of both the telecommunications community as a broadband carrier for Integrated Services Digital network (ISDN) and the networking industry, which views ATM technology as a strong candidate for high-speed LAN backbones. It is no surprise then that the ATM equipment market is expected to reach a value of $6.7 billion by the year 2001, according to Vertical Systems Group, a Dedham, Mass. market research and consulting firm that specializes in the networking industry. LSI Logic created the ATMizer II+ device with an ATM Processing Unit (APU) based on a CW4011 MiniRISC CPU core, to meet both flexibility and performance requirements. The MiniRISC CPU core delivers 160 MIPS peak performance (110 MIPS sustained) when operating at 80 MHz. The embedded MiniRISC CPU is compatible with R3000 and R4000 32-bit instruction sets. Special instructions have been added to the MiniRISC CPU to facilitate easy implementation of ATM rate algorithms. The ATMizer II+ scheduler block meets the ATM Forum guidelines by featuring six levels of priorities of traffic. The scheduler unit supports four independent Calendar Tables, making rate management for multi-PHY environments more efficient. The scheduler maintains the calendar tables in its external memory and performs traffic management functions on a large number of connections with arbitrary cell rates. For additional processing flexibility, an enhanced (Direct Memory Access) DMA controller performs the AAL-5 SAR function in hardware. The DMA controller also assists the user in memory management, allowing more efficient use of the chip and system resources. The ATMizer II+ device provides a 32-bit, 33 MHz PCI V-2.1 compliant bus interface for host access and a 32-bit 80 MHz local memory interface for data and control structures, and an 8-bit 50 MHz UTOPIA level-2 compliant port for PHY interface. "The rise of the Internet has caused new requirements for communication networks. These networks must now be robust, dependable, versatile, while providing increased performance and guaranteed quality of service," said Jordan Plofsky, vice president and general manager of networking products at LSI Logic. "The ATMizer II+ device provides telecom and networking equipment manufacturers the power and performance necessary to meet these growing demands." The ATMizer II+ standard product is manufactured with LSI Logic's G10(R)-P 0.35-micron CMOS process for low power and higher speed applications. The ATMizer II+ is available now in a 240 pin MQUAD package and is priced at $90 apiece for 5K piece volume orders. About LSI Logic LSI Logic, The System on a Chip Company(R), is a leading supplier of custom high-performance semiconductors, with operations world-wide. The company enables customers to build complete systems on a single chip with its CoreWare(R) design program, which increases performance, lowers system costs and accelerates time to market. LSI Logic develops application-optimized products in partnership with trend setting customers, and operates leading-edge manufacturing facilities to produce deep-submicron geometry chips. The company maintains a high level of quality as demonstrated by its ISO 9000 certifications. LSI Logic Corporation is headquartered at 1551 McCarthy Boulevard, Milpitas, California 95035, lsilogic.com. SOURCE LSI Logic Corporation CO: LSI Logic Corporation ST: California IN: CPR SU: PDT 01/26/99 09:00 EST prnewswire.com

To: pat mudge who wrote (9613)	2/13/1999 8:15:00 AM
From: Glenn McDougall	Read Replies (2) \| Respond to of 18016

Newbridge shares fall 9% following loss of contract to Cisco News of future acquisitions fails to halt slide Saturday, February 13, 1999 TYLER HAMILTON Technology Reporter Newbridge Networks Corp.'s stock tumbled 9 per cent yesterday on news the lucrative wireless equipment deal it received last August from WIC Connexus has gone to U.S. rival Cisco Systems Inc. The Kanata, Ont.-based company said yesterday that it is within weeks of completing two acquisitions, but that did little to counter its plunging share price. Newbridge shares dropped $3.70 yesterday to $36.30 on the Toronto Stock Exchange, where it was the second-most actively traded stock. The stock has fallen 25 per cent over the past week following Newbridge's surprise earnings warning, the result of sluggish sales in Asia and Latin America. "Certainly, a lost contract isn't positive," said Byron Berry, an analyst with Yorkton Securities Inc. in Toronto. "The minimum that this causes Newbridge is that it was a high-profile contract that they lost to a very powerful competitor." The contract was high profile because it was touted by Industry Canada as an example of how Canada's lead in emerging wireless markets would bring business opportunities to home-grown equipment companies, such as Newbridge, who could then sell their proven technologies globally as the rest of the world caught up. Connexus's switch to Cisco, observers say, is a sign that Canada's lead may have finally dwindled. It also signals that Newbridge will be up against stiff competition as it seeks out emerging markets as part of its continuing growth strategy. Mr. Berry said the news yesterday was enough for him to reduce his 12-month target to $51 from $55. "I had factored in a part of this [contract] into my revenue [forecast] model, so I reduced my estimate slightly." Toronto-based WIC Connexus, a unit of WIC Western International Communications Ltd., selected Newbridge andAlcatel SA of France last August as its main equipment suppliers in a four-year deal worth between $450-million and $500-million. Newbridge said at the time that it would get two-thirds of the revenue through that deal, and a similar amount from another contract announced on the same day from MaxLink Communications Inc. -- a Connexus rival. The switching equipment was to form the core of a high-speed wireless network -- dubbed LMCS (Local Multipoint Communications Systems) -- through which Connexus could offer telephone, data and Internet services. Newbridge hoped to showcase the Connexus network as part of a plan to boost its wireless equipment sales in the United States. Cheryl Nesbitt, an analyst with Scotia Capital Markets in Toronto, said that LMCS is still such an immature market that the contract loss shouldn't have any direct impact on Newbridge's future earnings. "I'm not changing my forecast," Ms. Nesbitt said. Still, she said the Connexus contract going to Cisco does "cause perception and credibility problems" for Newbridge. Mr. Berry agreed, adding that the loss of LMCS business, mixed with Newbridge's recent earnings warning, does raise a red flag for investors. Richard Woo, an analyst with Thomson Kernaghan & Co. in Montreal, said investors have to look at the fundamentals. "This company has missed five out of the last eight quarters. If you count the next quarter, that's six out of nine." Speculation continues as to why Newbridge lost the business. Some analysts point to technical problems with the company's switching equipment, which Newbridge strongly denies. Others say Cisco may have been chosen because of its relationship with Shaw Communications Inc., which owns 52 per cent of WIC. As for the acquisitions, Newbridge said it will announce two within the next two weeks, with more to come, as part of the company's continuing plan to bulk up its data networking product line.