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

To: Doug who wrote (11245)	5/6/1999 6:23:00 PM
From: Win-Lose-Draw	Read Replies (1) \| Respond to of 18016

Win-Lose-Draw: What you are now saying is that Multi-sourcing is available to NN whilst earlier submissions said that opportunity did not exist. Which is correct? The kind of multisourcing I'm talking about is serial, yours is parallel. The former may be available, the second generally isn't. You are correct that the latter would be nice, but it just isn't always feasible. It might be possible for NN to build their designs using two manufacturers, but that is not at all a trivial process and requires significant resources that may be put to better use elsewhere. Neither you nor I know enough about the specific problems to provide guidance on that issue. And NN certainly doesn't generate the kinds of ASIC volumes that give you lots and lots of leverage. But you can't have this conversation in the absence of resource constraints. Look, I'm not defending NN, au contraire, I'm quite p***ed of about what happened. But multisourcing internally designed ASICs doesn't strike me as especially feasible and it sure doesn't strike me as a good way to blow limited resources. If NN truly has boards that require days of testing before they can be shipped - well now, there's a place you can get some serious bang for your buck! And if this is the case, I'll bet you my bottom dollar that those parts have painfully high return rates - and field-failures are the most expensive kind of failures. ASIC supply is among the least of my worries.