Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: pat mudge who wrote (11639)	5/28/1999 9:15:00 PM
From: Chris Stovin	Respond to of 18016

Friday May 28, 5:38 pm Eastern Time Newbridge fourth quarter profits to land as warned By Lydia Zajc TORONTO, May 28 (Reuters) - Newbridge Networks Corp. (Toronto:NNC.TO - news) (NYSE:NN - news) is not expected to come up with any more surprises after already issuing a warning on its fourth quarter results due out on Tuesday, but analysts wonder how it will unplug a clogged supply pipeline. The computer networking and telecommunications company, based in Kanata near Ottawa, shocked the stock market on May 4 with news that profits would fall short of analysts' forecasts due to its failure to process a last-minute rush of orders. Operating earnings for its fourth quarter, which ended May 2, would come in at 12-14 cents a share, it said. That's 33 to 43 percent below the 21 cent per share average forecast by analysts at the time, as polled by First Call. ''They've pre-announced, it's out. They're going to come out with the numbers, they're going to be in line. They're going to give us a little more detail and they're going to talk about inventories and so forth,'' said Duncan Stewart, fund manager at Tera Capital. The company said on May 4 it will take about two quarters to correct problems in its manufacturing and shipping procedures. Out of the last eight quarters, Newbridge has failed to meet consensus expectations or issued warnings five times. Stewart added that Chief Operating Officer Alan Lutz and Newbridge management will be upbeat during Tuesday's conference call, which will held after the numbers come out. ''I expect the tone will be positive, though, they'll talk about 'here's all the stuff that we didn't ship and we've shipped it now.''' Rob MacLellan at CT Securities noted that the company will expand on its efficiency drive. ''We'll see the actual numbers and have the firm, hopefully, detail out its action plans for how it intends to address the issues that came up in the quarter.'' Another analyst, who declined to be named, said the company was expected to tell observers during Tuesday's call that it was having difficulties with its computer databases. Newbridge plans a big push to ensure they're in line with one another, he said. On Friday shares in Newbridge rose 55 Canadian cents to close at C$40.65 on the Toronto Stock Exchange. In New York, they ticked 50 cents higher to $27.63. ($1=$1.48 Canadian)