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

To: Serge Collins who wrote (11682)	6/1/1999 7:55:00 PM
From: Chris Stovin	Respond to of 18016

Newbridge meets lowered expectations By Bloomberg News Special to CNET News.com June 1, 1999, 4:05 p.m. PT OTTAWA, Canada--Newbridge Networks, the No. 5 network-equipment maker, said its fiscal fourth-quarter profit rose 3 percent, in line with a warning last month, before charges resulted in a loss. Profit from operations rose to C$33 million (U.S. $22.2 million), or 12 U.S. cents a share, from C$32 million, or 13 U.S. cents, a year earlier. Newbridge warned last month that its profit would be 12 to 14 U.S. cents a share, prompting analysts polled by First Call to slash their expectations to an average 13 U.S. cents from 21 U.S. cents. Newbridge reports per-share earnings according to U.S. accounting rules. Newbridge failed to make QUOTE SNAPSHOT June 1, 1999, 1:01 p.m. PT Newbridge Networks Corp. NN 27.0625 -0.5625 -2.04% by symbol by name > more from CNET Investor Quotes delayed 20+ minutes enough of its network switches to meet strong demand late in the quarter. The company blamed its problems on difficulty managing its supply of parts, a problem that began in the third quarter and which it plans to remedy. "People are looking to see what the action plan is to address their operational problems," said Mark Lucey, a Kearns Capital analyst, who has a "buy" rating on the shares. "They're going to be judged by their level of forthrightness." Sales rose 16 percent to C$457.1 million (U.S. $308.17 million) from C$395.2 million (U.S. $266.44 million). Gross margin, the percentage of sales left after production costs are subtracted, fell to 57 percent from 60 percent. "The product and demand side is all that's keeping things together," Lucey said. Investment gains and charges for closing some offices and streamlining operations resulted in fourth-quarter loss of C$29.8 million, or 11 U.S. cents a share. Shares of Newbridge fell just over 2 percent for the day. Copyright 1999, Bloomberg L.P. All Rights Reserved.