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

To: Glenn McDougall who wrote (9816)	2/24/1999 6:50:00 AM
From: Glenn McDougall	Read Replies (1) \| Respond to of 18016

Newbridge predicts double profits By SUSAN TAYLOR, Ottawa Sun Newbridge Networks Corp. came in, as expected, with pre-announced estimates for its third quarter and outlined plans to re-shape the telecommunications equipment firm. Newbridge reported sales of $451 million and a profit of 64cents per share, or 43cents US, in its third quarter, ended Jan. 31. Slow sales in Asia and Latin America for older product lines were to blame for results that fell 5cents per share behind analysts' estimates. "Indeed, we did miss the third quarter," said president Alan Lutz. "We are not sneaking off in the cover of darkness . . . we're moving ahead." Newbridge's profit will double from 1999 to 2000, he said. The first phase of Newbridge's transformation is complete with the appointment of Satjiv Chahil as executive vice-president of global marketing. Chahil, based in Virginia, has more than 25 years of hi-tech marketing experience at IBM, Xerox, Apple and Sony. The second phase includes a major expansion of marketing staff and new incentives for sales staff to push market share. There are also plans for product expansion, Lutz said. Newbridge's board of directors approved the strategy today and will review sales plans in early April. "The company is now to the point where it knows what it wants to be when it grows up," Lutz said. While Newbridge's cash balance grew $168 million in the quarter to $929 million, Lutz didn't detail any acquisitions. He did hint Newbridge is close "closing a transaction" that will rejuvenate its switching line. The product is associated with asynchronous transfer mode (ATM) technology, but Lutz wouldn't say more. "It's no longer correct to say that Newbridge is an ATM company," he said. "The religion is gone . . . we are a wide area networking company and we embrace the two primary standards." In a related move, a team working on Internet Protocol network gear will consolidate in the Boston area, where some affiliates are based. Lutz had little to say over its lawsuit against WIC Connexus and Western International Communications. The suit, over a lost contract, includes breach of contract, negligent misrepresentation and breach of confidence. The claim, related to a four-year deal to supply equipment for a wireless phone network worth $450-$500 million, could be up to $900 million. The deal was awarded to Cisco this week. WIC will vigorously defend itself against Newbridge's claims, said WIC CEO Peter Classon.

To: Glenn McDougall who wrote (9816)	2/24/1999 10:17:00 AM
From: pat mudge	Read Replies (1) \| Respond to of 18016

Here's the Dow Jones version: <<< February 23, 1999 Dow Jones Newswires Newbridge Comfortable With 4Q Net View Of 21-22c A Share Dow Jones Newswires 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. >>>>

To: Glenn McDougall who wrote (9816)	2/24/1999 10:17:00 AM
From: pat mudge	Respond to of 18016

Here's the Dow Jones version: <<< February 23, 1999 Dow Jones Newswires Newbridge Comfortable With 4Q Net View Of 21-22c A Share Dow Jones Newswires 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. >>>>