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NEWBRIDGE ANNOUNCES RESULTS FOR FISCAL YEAR 1992

 NEWBRIDGE ANNOUNCES RESULTS FOR FISCAL YEAR 1992
 KANATA, Ontario, June 4 /PRNewswire/ -- Newbridge Networks


Corporation (NASDAQ: NNCXF) today announced its financial results for the company's fiscal fourth quarter ended April 30, 1992. Throughout fiscal year 1992 the company has generated quarter over quarter improvements in financial performance. Growth in revenues, net earnings and cash position have been complemented by a substantial rise in order intake and backlog.
 Sales for the fourth quarter of fiscal year 1992 were $52.1 million, representing a 42 percent increase over the corresponding quarter of fiscal 1991. Revenues for fiscal year 1992 were $181.4 million, up 22 percent from the fiscal year 1991 revenue of $149.1 million. Net earnings for the fourth quarter of fiscal year 1992 were $4.7 million or 13 cents per share (basic and fully diluted - Canadian GAAP). For the 1992 fiscal year the company recorded net earnings of $9.8 million (28 cents per share basic and fully diluted - Canadian GAAP) versus a loss of $17.9 million (as restated to accommodate the settlement of litigation in the U.S.) in fiscal 1991 (53 cents) per share basic and fully diluted - Canadian GAAP).
 Continued growth in sales to telephone companies and a strong quarter in corporate network sales contributed to the increase in revenues and order intake in the fourth quarter. In the United States, order intake for corporate network sales was at the highest level in a year and a half. The company's backlog position grew significantly in the fourth quarter to reach its highest level ever. This reflects, in part, the company's success in taking advantage of the opportunities afforded by the trend in the communication networking industry to hybrid public/private networks. In the central offices of more than 60 telephone companies, carriers and PTTs around the world, high-end Newbridge equipment is able to provide enhanced capabilities including network partitioning and network management. These companies are then able to offer new services to complement private networks by utilizing the telephone companies' public network infrastructure.
 Orders for the MainStreet (registered) line of networking equipment have been increasing from all business regions, particularly from South America. The company announced several large new contracts during the year which will contribute significantly to the company's business. Recently the company announced agreements with Alcatel, Southwestern Bell, Siemens, Embratel, Unitel and Meroury. Through MCI the company was chosen to supply networking products for the FAA LINCS project and through Siemens Newbridge was awarded the DBP-Telekom City Data Network in Germany. The company also concluded a major contract in the fourth quarter with BT for the supply of networking equipment to support Managed Private Network Services.
 Cost containment measures announced in the latter part of fiscal 1991 took effect throughout fiscal 1992 and operating expenses declined 6.5 percent versus fiscal year 1991. This decline is in spite of the fact that the company increased its net investment in research and development by over 14 percent in fiscal 1992 compared to fiscal 1991.
 The fourth quarter closing cash position was in excess of $17 million as the company generated $8.2 million in cash in the quarter. Accounts receivable continued to improve and the days sales in accounts receivable dropped for the fifth consecutive quarter to a level of 86 days. Inventory dropped by $7.1 million through fiscal 1992 despite the significant increase in revenue in fiscal 1992.
 Terry Matthews, Newbridge chairman commented, "Fiscal year 1992 was a year of great satisfaction for the management and employees of Newbridge. Business activity was up significantly through the year and particularly in the fourth quarter during which the company supplied networks to more than 50 new customers. This, combined with a decrease in operating expenses, produced profitability improvements in all four quarters of fiscal 1992. The market acceptance of the feature-rich Network Product 4 generic of the MainStreet product line, particularly in the telephone company market, contributed to significant growth in orders and revenues.
 The company continues to expand the Frame Relay capabilities of the MainStreet product line and featured the 36120 MainStreet Packet Transfer Exchange at the InterOp trade show in May. The new product is the most powerful standards-compliant Frame Relay platform and was designed for both public and private users. The company also introduced the 3604 MainStreet Frame Relay Packet Feeder. These products reinforce the position of Newbridge as the only vendor to provide a complete solution for standards-based Frame Relay networking. Newbridge is now able to provide optimum network solutions combining Frame Relay switches and peripherals with circuit-based connectivity under common network management control for public and private network operators.
 A summary of financial 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 (NNCXF) in the United States and listed for trading on The Toronto Stock Exchange (NNC) in Canada.
 NEWBRIDGE NETWORKS CORPORATION
 Condensed Statements Of Earnings
 (Canadian dollars in thousands, except per share data)
 Periods ended Quarter Year
 April 30 1992 1991 1992 1991
 Sales $52,050 $36,797 $181,369 $149,065
 Cost of sales 21,859 15,222 76,449 59,879
 Gross Margin 30,191 21,575 104,920 89,186
 Expenses
 Selling and
 technical support 12,854 13,366 47,098 53,060
 General and
 administrative 3,682 4,136 13,937 16,292
 Research and
 development 4,815 5,096 21,054 18,409
 Income from
 operations 8,840 (1,023) 22,831 1,425
 Interest and other
 expenses 1,609 3,391 8,054 11,259
 Equity in loss from
 affiliates 1,243 (629) 1,863 (629)
 Restructuring costs -- -- -- 3,510
 Settlement of
 litigation -- -- -- 6,001
 Earnings before
 income taxes 5,988 (3,785) 12,914 (18,716)
 Provision for
 income taxes 1,288 (105) 3,137 (803)
 Net earnings $ 4,700 $ (3,680) $ 9,777 $(17,913)
 Earnings per share
 Basic .13 (.11) .28 (.53)
 Fully diluted .13 (.11) .28 (.53)
 NEWBRIDGE NETWORKS CORPORATION
 Condensed Balance Sheets
 4/30/92 4/30/91
 (as restated)
 Cash $ 17,019 $ 4,584
 Accounts receivable 48,957 39,088
 Inventory 29,851 36,995
 Property, plant
 and equipment 62,037 62,800
 Other assets 20,205 18,928
 $178.069 $162,395
 Accounts payable
 and accruals $ 28,876 $ 24,584
 Income taxes
 payable 682 106
 Long term obligation 38,293 43,502
 Other liabilities 488 706
 69,339 68,898
 Shareholders' equity 109,730 93,497
 $178,069 $162,395
 -0- 6/4/92
 /CONTACT: Jim Marshall or Sandra Plumley of Newbridge Networks, 613-591-3600/
 (NNCXF) CO: Newbridge Network Corporation ST: Ontario IN: SU: ERN


LR -- NY086 -- 7281 06/04/92 19:13 EDT
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