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

To: pat mudge who wrote (9814)	2/24/1999 4:32:00 AM
From: Glenn McDougall	Respond to of 18016

Notes from the CC 50 gig switch in lab September and shipping by end of year. 0C48 on schedule Referred to ASND/LU as big and slow vs. Newbridge small and fast moving. Top three clients for the Q were in order Siemens, C&W & SBC. Phase one of the Newbridge transformation over. Phase two the company wants to be a "real world networking company" dealing with a wide range of networking needs like access, security... AT&T a very large client with lots of opportunity in the future. Siemens / Newbridge products under the Main Street umbrella name. Marketing to larger clients has been done in the past by a few Newbridge employees. This has changed, in the future the effort will be done by a larger marketing team. Phase 2- Grow market share. Alan wanted to close with 3 points -Disapointed not making Q -Pleased about leadership of company -Good customer reaction to products Regards Glenn

To: pat mudge who wrote (9814)	2/24/1999 4:50:00 AM
From: Glenn McDougall	Read Replies (3) \| Respond to of 18016

Newbridge reports disappointing results in third quarter Wednesday, February 24, 1999 SIMON TUCK Technology Reporter Ottawa -- Newbridge Networks Corp. reported disappointing third-quarter results yesterday, leaving its management team with the familiar problem of rebuilding the company's credibility with the financial community. Earlier this month, the Kanata, Ont.-based communications equipment company cautioned it would miss third-quarter profit expectations -- the sixth warning it has made in the past nine quarters. Analysts are irked at these last-minute surprises, and say they want more reliable guidance from Newbridge's new, more experienced management team. But that hope was dashed when the company warned in early February that it would miss profit expectations by about 5 cents a share. The shortfall was confirmed yesterday when the company announced a profit of $46.2-million or 26 cents a share on revenue of $451-million for the quarter ended Jan. 1. That compares with a profit of $17.1-million or 10 cents on $359-million in the year-earlier period. The shortfall from profit expectations means that Bay Street's honeymoon with Newbridge's new bosses, which started in June with the hiring of new president and chief operating officer Alan Lutz, is over, some analysts say. Meanwhile, Mr. Lutz is predicting company earnings will grow about 50 per cent during the next fiscal year. "This company is now to the point where it knows what it wants to be when it grows up," he told analysts during a teleconference yesterday. He said Newbridge is entering a new phase that will be based around its flagship asynchronous transfer mode (ATM) technology, the company's leading engine of growth, and trying to gain a strong presence in the Internet protocol (IP) market. Jim Kedersha, an analyst with SG Cowen Securities Corp. in Boston, said Newbridge still must learn to set realistic expectations. "It's frustrating as hell because they never make the numbers, but I believe in this company," he said. "[The profit warning] didn't have to happen. "They don't gain any real benefit by letting expectations get out of hand," said Mark Lucey of Kearns Capital Ltd. in Toronto. "But, to be fair, I think the new team is executing better than the old team." The new team also announced Monday it is suing Vancouver-based WIC Connexusand WIC Western International Communications Ltd. for up to $900-million for the loss of a major contract. Newbridge shares fell 5.6 per cent or $2.40 to $40.45 yesterday on the Toronto Stock Exchange.