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

To: pat mudge who wrote (10011)	3/4/1999 8:23:00 PM
From: zbyslaw owczarczyk	Read Replies (1) \| Respond to of 18016

Pat, here is Bloomberg report about Alan presentation to Merrill. Bloomber report howevewr did not forget to make some FALSE statment: "Ascend is almost twice as big as Newbridge based on annual sales". Even your cat could find out that ASND revenue fro the last four quarters was about 15% higher. Zbyslaw Newbridge Sees Lucent Purchase as Chance to Win Ascend Clients Kanata, Ontario, March 4 (Bloomberg) -- Newbridge Networks Corp. hopes to lure customers away from rival Ascend Communications Inc. while Ascend is being acquired by Lucent Technologies Inc., Newbridge President Alan Lutz said. Lucent expects to complete the US$19.2 billion acquisition by June 30. Lutz, speaking on a conference call for investors organized by Merrill Lynch & Co., said the effort required to merge their businesses could draw their attention away from sales and create an opportunity for Newbridge, the No. 5 network- equipment maker. ''There will be a near-term impact on Ascend,'' he said. ''The slowdown is unavoidable.'' Newbridge makes wide-area networking switches based on asynchronous transfer mode, or ATM, technology used by telecommunications companies. It also competes with Cisco Systems Inc., the No. 1 maker of computer-networking gear, and Northern Telecom Ltd., North America's No. 2 phone-equipment maker. Ascend is almost twice as big as Newbridge based on annual sales. Lutz, who's also chief operating officer, said he's most concerned about competing with Cisco because it's a strong marketer, and with the faster switches that Ascend makes. He dismissed Northern Telecom, a long-time supplier of voice- switching gear, as too slow. ''The more traditional telecom suppliers don't move at the same speed as Cisco and Ascend do,'' Lutz said. Siemens Alliance Lutz also commented on Newbridge's joint development and sales alliance with Siemens AG of Germany, a relationship that generates about 20 percent of Newbridge's revenue. He called a New York Times report that the alliance is unraveling ''rubbish.'' Lutz said Newbridge has no plans to end its relationship with Siemens, the No. 3 phone-equipment maker in Europe. Siemens has agreed to buy closely held Argon Networks Inc. for about US$240 million, according to people familiar with the company's plans last week, and is in talks to buy 3Com Corp.'s network- equipment unit for $1.2 billion, the Times reported. ''Business was stronger last quarter than it ever has been with Siemens,'' he said. ''Business this quarter looks very good with Siemens.'' Newbridge's fiscal third-quarter profit more than doubled to C$46 million (US$30.2 million), or 17 U.S. cents a share, in the fiscal third quarter on sales of C$451 million. A year earlier, the Kanata, Ontario-based company earned C$17 million, or 7 U.S. cents, on sales of C$358.5 million. It's expected to earn 21 cents a share in the current quarter ending in April, the average estimate of analysts polled by First Call Corp. NYSE/AMEX delayed 20 min. NASDAQ delayed 15 min.

To: pat mudge who wrote (10011)	3/4/1999 10:19:00 PM
From: zbyslaw owczarczyk	Read Replies (2) \| Respond to of 18016

Newbridge denies Siemens relationship "in tatters" Mr.Duncan and unknown analyst are again speculating on every word written in press, and always know Siemens-NN alliance better then members itself.Also they did not forget WIC but forgot about another LMDS win (Home Telephone ). TORONTO, March 4 (Reuters) - Newbridge Networks Corp. (Toronto:NNC.TO - news) said there was no truth to a newspaper report which said the relationship between Siemens AG (quote from Yahoo! UK & Ireland: SIEG.F) and Newbridge was unravelling. Newbridge spokespeople were adamant on Thursday, the third anniversary of the wide-ranging alliance between the Canadian networking company and Siemens, that the union has ''never been stronger.'' Siemens stock jumped on Thursday after a New York Times newspaper report, citing executives close to Siemens that it was set to invest three billion marks ($1.7 billion) in a U.S. data transmission venture. Siemens said it would hold a news conference regarding the matter in New York on Monday afternoon. Newbridge investors appeared undaunted by the report, bidding the stock up C$0.15 to C$37.85 on the Toronto Stock Exchange and 3/16 to 24-13/16 on the New York Stock Exchange. The New York Times said Siemens was on the brink of creating a new American data networking unit, buying two private U.S. firms, investing in another and hiring a International Business Machines Corp. senior executive. The newspaper said the German company would buy a unit of networking group 3Com Corp. (Nasdaq:COMS - news), a major provider of Internet protocol technology that allows for high-speed, high-volume data and voice communications over the Internet. Most important to Newbridge, it also said the pact between the two companies -- which does not involve any equity ties -- was foundering. ''Newbridge has its own alliance with Siemens, but executives close to Siemens said the relationship was in tatters and the deals Siemens would announce Monday would make clear that the relationship with Siemens is in trouble,'' the New York Times said. Newbridge spokesman John Lawlor disputed the information in the report regarding the alliance. ''What I've been saying to financial analysts and investors the last little while is that in the three years since the alliance was announced, from my prespective, I don't believe it's ever been stronger,'' Lawlor said. ''Siemens is now 20 percent of our total revenue. And the flipside of that is that Newbridge product represents about 50 percent of their data communications revenue.'' Newbridge spokesman Paul Goyette said Chief Executive Alan Lutz called his ''counterpart in Munich'' on Thursday morning to discuss the newspaper story and came away with the conviction that all was well between the companies. Analysts said they were not certain what form the Siemens datacom unit would take, but it appeared likely to have a negative effect on Siemens' pact with Newbridge. ''The phrase, the Newbridge-Siemens relationship is 'in tatters' -- that can't be a good thing,'' said Duncan Stewart, portfolio manager and high-technology specialist at Tera Capital. He said he was not surprised Newbridge would deny difficulties. ''It is unlikely that Lutz would admit that the relationship is bad even if it were.'' One analyst, whose brokerage does not allow him to be identified, said Siemens is paving the way to make a break from the Kanata-Ontario based company. ''They are weaning themselves off Newbridge,'' he said, adding if the details of the newspaper report were accurate, Siemens would need Newbridge only for its asynchronous transfer mode (ATM) switch -- a switch which allows the high-speed transmission of voice, video and data across a network. There are a number of different networking products now in the joint venture. This would be a fresh blow to Newbridge which last month lost a lucrative contract with WIC Western International Communications Ltd. unit WIC Connexus for wireless communications equipment called local multipoint distribution system communications. More Quotes and News: 3Com Corp (Nasdaq:COMS - news) Newbridge Networks Corp (Toronto:NNC.TO - news) Related News Categories: Canadian Market News, US Market News Help Copyright © 1999 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. See our Important Disclaimers and Legal Information. Questions or Comments?