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

To: Doug who wrote (9811)	2/23/1999 11:09:00 PM
From: Chris Stovin	Read Replies (1) \| Respond to of 18016

This just posted this evening on Yahoo... Tuesday February 23, 10:09 pm Eastern Time FOCUS-Newbridge profit rises but below estimates (Adds analyst's comments on third quarter) TORONTO, Feb 23 (Reuters) - Newbridge Networks Corp. (Toronto:NNC.TO - news) (NYSE:NN - news) posted a big increase in third-quarter profit on Tuesday, but one that was still below analysts' expectations. The profit report came a day after Newbridge launched a billion-dollar lawsuit against broadcaster WIC Western International Communications Ltd. (Toronto:WICb.TO - news) for breach of contract. Newbridge's net earnings for the quarter ended January 31 were US$0.17 a share or C$46.2 million versus US$0.07 a share or C$17.1 million in the year-before quarter. The Kanata, Ontario-based telecommunications and computer networking firm said in early February that its third-quarter numbers would come in about US$0.05 a share less than street estimates. It said the Asian and Latin American economic crises had hit its performance harder than expected. ''This was a good news -- and not so good news -- quarter,'' said Alan Lutz, Newbridge president and chief operating officer, in a press release. Revenue in the quarter was C$451 million, up 26 percent from C$359 million in the year-before quarter. One analyst, who refused to be identified, noted that during the conference call with analysts Newbridge said that the company was comfortable with fourth quarter profit estimates of US$0.23 to US$0.24 a share. The overall tone of the analysts' call, he added, was ''cautious, skeptical.'' On Monday Newbridge filed a suit, worth over C$1-billion, against WIC and its unit WIC Connexus. In documents filed in Ontario court on Monday, Newbridge is seeking to force WIC to uphold a contract, worth C$450 million-C$500 million, awarded last August to Newbridge and France's Alcatel Alsthom (NYSE:ALA - news). The deal was to build a national local multipoint communications system infrastructure. WIC, which has been taken over by Shaw Communications Inc. (Toronto:SCLB.TO - news), dumped Newbridge and Alcatel in January and gave the contract to U.S.-based Cisco Systems Inc. (Nasdaq:CSCO - news). If WIC does not reinstate the contract, Newbridge is asking for damages of C$350 million from Connexus for breach of contract and damages of C$350 million from Connexus for intentional or negligent misrepresentation. Also, Newbridge alleges that confidential information it passed onto Connexus is being used improperly and asked for breach of confidence damages worth C$200 million. It also requests damages against WIC for C$350 million for inducing Connexus to breach its contract, along with other costs. One analyst, who declined to be identified, said that Newbridge had made a poor choice in launching the lawsuit. ''It looks bad on Newbridge ... You normally just sort of take it on the chin, you lick your wounds and back down,'' he added. ''People lose contracts in this business all the time.'' Newbridge shares closed C$2.40 lower at C$40.45 on the Toronto Stock Exchange on Tuesday, on volume of more than 700,000 shares. ($1=$1.50 Canadian)

To: Doug who wrote (9811)	2/23/1999 11:54:00 PM
From: Maple Leaf	Respond to of 18016

Doug, From Dec's 10Q filing <<<Sales to Siemens A.G. and subsidiaries, generally under OEM arrangements for resale to end users, were 15% of total sales for the second quarter and first six months of fiscal 1999 as compared to 18% of sales in the second quarter of fiscal 1998 and 19% of sales for the first six months of fiscal 1998.>>> So sales through Seimans are up substantially over the first 2 quarters.I haven't looked up fiscal 98's revenues so I don't know how they compare on a gross dollar basis to the 18 & 19% for the first 6 months of 98. Ray