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

To: Dennis R. Duke who wrote (9809)	2/23/1999 11:00:00 PM
From: Ian@SI	Respond to of 18016

TORONTO -- Newbridge Networks Corp. (NN), the networking equipment vendor, is comfortable with analysts' earnings projections of between 21 U.S cents and 22 U.S. cents a share for its fiscal fourth quarter ending April 30, 1999. In a teleconference with analysts, president and chief operating officer Alan Lutz also said it's likely the company's earnings will grow by 50% in the fiscal year ending April 30, 2000 from the current fiscal year. Newbridge, based on in Kanata, Ont., is expected to earn 73 U.S. cents a share in fiscal 1999, and US$1.15 a share for fiscal year 2000, based on the mean consensus of analysts' estimates compiled by First Call Corp. Lutz's growth-rate projection might seem ambitious since the company's fiscal third-quarter financial results, which were reported after the market close Wednesday, fell short of analysts' original expectations. As reported, Newbridge reported third-quarter net income of 43 U.S. cents a share, according to U.S. generally accepted accounting principles. Excluding unusual items, net income for the quarter was 17 U.S. cents. Lutz said his confidence about future growth is fueled by positive feedback from customers so far in its current fiscal fourth-quarter, as well as by the company's moves to broaden its core product base from ATM switches to include Internet-protocol network gear. Lutz said the company plans to unveil more details about its IP, or Internet-protocol, strategy in the coming weeks. He did say the plan includes "consolidating the company's activities," in the Boston area, including several affiliate companies. -By Ben Dummett; 416-943-7807;