Printer Friendly

NEWBRIDGE NETWORKS ANNOUNCES FIRST QUARTER RESULTS

 KANATA, Aug. 17 /PRNewswire/ -- Newbridge Networks Corporation today announced financial results for the first quarter of fiscal year 1994 ended July 31, 1993. Revenues for the first quarter were $115.3 million representing a 106 per cent increase over revenues for the same period of last fiscal year. Net income for the quarter was $32.0 million (38 cents per share fully diluted), compared to a net income of $6.2 million (8 cents per share fully diluted) for the first quarter of fiscal year 1993 and net income of $25.5 million (31 cents per share fully diluted) for the fourth quarter of fiscal year 1993.
 The company's order intake was greater than product shipments and the company's order backlog increased for the ninth consecutive quarter. All regions reported healthy business activity with particularly important alliances struck and contracts won in Europe and North America. During the quarter in excess of 130 new customers chose Newbridge networking solutions.
 Gross margins for the first quarter increased more than 2 percent to 67.4 per cent. The company generated $22.1 million in cash during the quarter; the cash balances now stand at $221.9 million. Inventory turns increased to 6.2 times.
 Commenting on the quarter, Newbridge Chairman Terence Matthews said, "The level of new business achieved and the strengthening and extension of existing business relationships in the first quarter of fiscal year 1994 indicate a healthy start to the new year. Customer interest in both private and public networks based on the MainStreet(R) family of ATM products indicates that the demand for ATM-based networks is growing more rapidly than most industry observers had expected. As an example, Metro Fibre Systems Datanet recently announced the implementation of the first national ATM network in the US. This network is based on Newbridge 36150 MainStreet ATMnet(TM) switches.
 "In addition to winning new ATM contracts in the first quarter, Newbridge announced important public and private Frame Relay contracts, including a Frame Relay network for Edmonton Telephone, allowing the company to offer the first public Frame Relay service in Canada. Ernst & Young, one of the world's leading professional services firms, awarded Newbridge the contract to supply a Frame Relay network linking its 27 offices and 7,000 staff in the U.K.
 "Newbridge and Optical Data Systems (ODS(TM)), a leading hub supplier, announced during the quarter that the companies have entered into a strategic alliance to incorporate the Newbridge VIVID(TM) Ridge and ATM switching technology into the ODS Infinity Hub. This alliance is particularly important to Newbridge because it makes it easy for an end user to upgrade to ATM LAN solutions."
 One of the most significant events during the quarter was the successful registration of the company's headquarters to the ISO 9001 Quality Assurance standard. After a rigorous assessment of its operations, the company was awarded the internationally recognized quality designation for design/development, production, installation and servicing functions related to the MainStreet family of digital networking products.
 In June the board of directors declared a two for one stock split effected in the form of a 100 per cent stock dividend which was paid on June 30, 1993 to shareholders of record as of June 23, 1993.
 A summary of results follows.
 Newbridge Networks is an international company which designs, manufactures, markets and services multimedia, standards-based networking products for global LAN and WAN applications, all manageable by a single, graphically rich network management system. Facilities are located in Canada, the United States, Europe and Asia.
 Newbridge Networks Corporation is a public company whose common shares are quoted for trading on the NASDAQ National Market System under the symbol NNCXF in the United States and listed for trading on The Toronto Stock Exchange under the symbol NNC in Canada.
 NEWBRIDGE NETWORKS CORPORATION
 Condensed Statements Of Earnings
 (Canadian Dollars In Thousands, Except Per Share Data)
 For the quarter ended 7/31/93 8/1/92
 Sales $ 115,296 $ 55,948
 Cost of sales 37,559 22,758
 Gross Margin 77,737 33,190
 Expenses
 Selling and technical support 20,087 14,577
 General and administrative 4,321 3,222
 Research and development 8,755 5,790
 Income from operations 44,574 9,601
 Interest income (expense) 1,639 (910)
 Other income (expenses) (151) (521)
 Earnings before income taxes 46,062 8,170
 Provision for income taxes 14,027 1,984
 Net earnings $ 32,035 $ 6,186
 Earnings per share (Cdn GAAP) (cents)
 Basic 41 9
 Fully diluted 38 8
 U.S. GAAP (primary and fully diluted) 38 8
 Condensed Balance Sheets
 7/31/93 4/30/93
 Cash and short term investments $ 221,916 $ 199,855
 Accounts receivable 84,250 69,424
 Inventory 24,122 23,322
 Property, plant and equipment 66,846 66,472
 Other assets 26,396 24,804
 Total $ 423,530 $ 383,877
 Accounts payable and accruals $ 51,000 $ 49,999
 Income taxes payable 15,298 10,401
 Long term obligations 30,776 33,178
 Deferred taxes 2,139 2,145
 Total 99,213 95,723
 Shareholders' equity 324,317 288,154
 Total $ 423,530 $ 383,877
 -0- 8/17/93
 /CONTACT: Jim Marshall or Sandra Plumley of Newbridge Networks Corporation, 613-591-3600/
 (NNCXF)


CO: Newbridge Networks Corporation ST: Ontario IN: CPR SU: ERN

MP -- NY074 -- 3717 08/17/93 16:34 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 17, 1993
Words:885
Previous Article:RADA ELECTRONIC INDUSTRIES REPORTS RESULTS
Next Article:CHICAGO MILWAUKEE CORPORATION REPORTS 1993 SECOND QUARTER OPERATING RESULTS
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters