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


To: Chris Stovin who wrote (11135)5/4/1999 11:10:00 PM
From: Doug  Read Replies (1) | Respond to of 18016
 
Chris: What exactly has to be fixed?.

The problem as I see is as follows:

a: TDM a high Margin product line with excess capacity but unsteady orders.

b: ATM/IP a lower margin product line with a shortage in capacity but
increasing orders on a near demand basis.

It would seem appropriate for them to

a: Subcontract TDM production on demand to an Outside Agency(ex Employees)whilst allowing them to use their facilities. All original staff could be laid off. Q/A and Inspection should be retained by NN.

b: Step up ATM production using 2 shifts where necessary.

Such reorganisation should not take 9 mths (3Q's). Under dynamic Leadership on the floor, it can be done in 3 mths.