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 KANATA, Nov. 16 /PRNewswire/ -- Newbridge Networks Corporation (NASDAQ-NMS: NNCXF) today announced financial results for the first six months of fiscal year 1994 ended Oct. 30, 1993.
 Revenues for the first six months of fiscal year 1994 were $243,386,000 representing a 97 percent increase over revenues of $123,355,000 for the same period of last fiscal year. For the first two quarters of fiscal 1994, net income was $69,144,000 (87 cents per share basic and 83 cents per share fully diluted - Canadian GAAP), compared to $16,815,000 (24 cents per share basic and 22 cents per share fully diluted - Canadian GAAP), for the same period of fiscal 1993; representing an increase of 311 percent in earnings.
 Revenues for the second quarter were $128,090,000, representing a 90 percent increase over revenues of $67,407,000 for the same period of last fiscal year. Net income for the quarter was $37,079,000 (47 cents per share basic and 44 cents per share fully diluted - Canadian GAAP), compared to $10,629,000 (15 cents per share basic and 14 cents per share fully diluted - Canadian GAAP) for the same period of fiscal year 1993, representing an increase of 249 percent in earnings.
 The company generated $42,562,000 in cash from operations during the second quarter; the cash balances now stand at $231,663,000.
 The Company's order intake for the quarter was at an all time high, increasing for the tenth consecutive quarter, resulting in record level backlog. Order intake and revenues were up sequentially in all of the Company's business regions. The top five customers in the second quarter were telephone companies, which continue to represent and increasing proportion of the business. Strong increases in revenue came from Frame Relay and ATM products.
 "I am pleased to report another quarter of substantial growth and the achievement of significant milestones," commented Terry Matthews, Newbridge chairman and chief executive officer. "Throughout the quarter ATM product development and sales activities escalated. Including the many ATM networks the company has delivered over the past year, Newbridge ATM accounts totaled 60 at the end of the second quarter. Following the announcement of a joint marketing relationship between Newbridge and Pacific Bell, the carrier announced its selection of the Newbridge 36150 MainStreat(R) ATMnet(TM) switch for the provision of new high speed ATM services in California and an agreement with Hughes Aircraft Company to provide major elements of the Hughes pilot ATM corporate network. US WEST also announced that it has chosen the Newbridge 36150 MainStreet ATMnet switch for customer trials in the second phase of a three-phase program to provide ATM services to its customers.
 "Activity is also increasing in the development of the Newbridge VIVID(TM) ATM LAN interconnectivity products. Earlier this month the VIVID business unit announced the formation of a strategic alliance with Standard Microsystems Corporation (SMC) to jointly develop and market a series of standards-based internetworking products based on ATM technology. SMC is the leader in its class of workstation connectivity.
 VIVID had earlier announced a strategic development and marketing alliance with Xyplex to incorporate the Newbridge VIVID Ridge an ATM switching technology into the Xyplex Network 9000(TM) Routing Hub. VIVID also signed an agreement to jointly develop ATM and Ethernet-based connectivity products based on the new LSI Logic ATMizer and CASCADE networking products.
 "In a move to solidify the company's participation in the rapidly growing LAN connectivity market Newbridge expanded its relationship with Advanced Computer Communications (ACC) to include additional product development and co-operative marketing, manufacturing, sales and support activities. Newbridge is also increasing its equity interest in ACC. Our close relationship with ACC over the past year has proven that their expertise in the internetworking market is an ideal complement to our leadership position in global networking."
 Newbridge Networks is an international company which designs, manufactures, markets and services high performance, 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, Asia and Russia.
 Newbridge Networks Corporation is a public company whose common shares are quoted for trading on the NASDAQ National Market System (NNCXF) in the United States and listed for trading on The Toronto Stock Exchange (NNC) in Canada.
 Condensed Statements of Earnings
 (Canadian dollars in thousands, except per share data)
 Fiscal quarter ended Two fiscal quarters
 Oct. 30, Oct. 31, Oct. 30, Oct. 31,
 1993 1992 1993 1992
 Sales $ 128,090 $ 67,407 $ 243,386 $ 123,355
 Cost of sales 39,525 26,909 77,084 49,667
 Gross Margin 88,565 40,498 166,302 73,688
 Selling and
 support 21,987 14,574 42,074 29,151
 General and
 administrative 4,980 3,271 9,301 6,493
 Research and
 development 8,811 6,205 17,566 11,995
 Income from 52,787 16,448 97,361 26,049
 Interest income
 (expenses) 1,935 (783) 3,574 (1,693)
 Other income
 (expenses) 15 (725) (136) (1,246)
 Earnings before 54,737 14,940 100,799 23,110
 income taxes
 Provision for
 income taxes 17,658 4,311 31,685 6,295
 Net earnings $ 37,079 $ 10,629 $ 69,114 $ 16,815
 Earnings per share
 (Cdn. GAPP)
 Basic (cents) 47 15 87 24
 Fully diluted
 (cents) 44 14 83 22
 U.S. GAAP (primary
 and fully diluted)
 (cents) 44 14 82 22
 Condensed Balance Sheets
 as at October 30, 1993 and April 30, 1993
 (Canadian dollars in thousands)
 October 30, April 30,
 1993 1993
 Cash and short term investments $ 231,663 $ 199,855
 Accounts receivable 92,627 69,424
 Inventory 26,586 23,322
 Property, plant and equipment 73,710 66,472
 Other assets 47,457 24,804
 Total $ 472,043 $ 383,877
 Accounts payable and accruals $ 55,071 $ 49,999
 Income taxes payable 20,270 10,401
 Long term obligations 28,605 33,178
 Deferred taxes 1,083 2,145
 Total 105,029 95,723
 Shareholders' equity 367,014 288,154
 Total $ 472,043 $ 383,877
 -0- 11/16/93
 /CONTACT: Jim Marshall or Sandra Plumley of Newbridge Networks Corporation, 613-591-3600/

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

TM -- NY115 -- 5190 11/16/93 18:02 EST
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Publication:PR Newswire
Date:Nov 16, 1993

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