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

To: Robert who wrote (11657)	6/1/1999 12:40:00 PM
From: Doug	Read Replies (1) \| Respond to of 18016

Robert: Todays price action shows the street does not anticipate any immediate gains consequent to the CC. From the more recent Business clips, it would appear that the Analysts require clear guidance and less mush.

To: Robert who wrote (11657)	6/2/1999 6:40:00 AM
From: Glenn McDougall	Respond to of 18016

Firm bridges loss Streamlining bleeds $30M from quarter By KEVIN BELL, Business Editor, Ottawa Sun NEWBRIDGE Networks Corp. says it is firmly in fix-it mode to lick production problems that led to disappointing fourth-quarter results. The Kanata firm said yesterday it lost $30 million in the quarter as it turned to special changes to cut costs and streamline operations. Net earnings excluding charges and unusual losses were $33 million, which represents 12cents US a share. That's 9cents below analysts' consensus estimates before the company warned last month analysts' expectations were far too high. But company president Alan Lutz said the company has made progress in fixing production bottlenecks that led to the profit warning. "We are not completely there (yet)," he said, explaining the main drag on earnings was an order backlog of $115 million that could have been shipped, but the firm was unable to get its products out the back door. But he said the company has established procedures to cut blocks in the production line. The firm will check inventories as orders come in to ensure each order can be filled. It has also revamped the way it pays sales people to encourage orders that can be delivered. Lutz said the production logjam should be cleared within two quarters. But Paul Sagawa, an analyst with Sanford C. Bernstein & Co., said he questions whether Newbridge can solve its problems so quickly. "You do have to have some skepticism that they can execute their plan," he said. "But they've certainly been thinking about it." Patrick Houghton, an analyst with Sutro & Co., said Newbridge can easily beat analysts' estimates for 2000. Lutz also told analysts yesterday their estimates for next year are on the low side. Newbridge shares closed at $40.15 on the TSE yesterday, down $1.35 as investors anticipated disappointing results after the market closed.