Printer Friendly

NEWBRIDGE NETWORKS ANNOUNCES FIRST QUARTER RESULTS

 NEWBRIDGE NETWORKS ANNOUNCES FIRST QUARTER RESULTS
 KANATA, Ont., Sept. 1 /PRNewswire/ -- Newbridge Networks Corporation


(NASDAQ: NNCXF) today announced financial results for the first quarter of fiscal year 1993 ended August 1, 1992. The company continues to report improved quarter over quarter financial results. Revenues for the quarter were $55,948,000, representing a 36 percent increase over revenues for the same period of last fiscal year. Net income for the quarter was $6,186,000 (18 cents per share basic and 17 cents fully diluted -- Canadian GAAP), compared to a net income of $1,067,000 (3 cents per share basic and fully diluted -- Canadian GAAP) for the first quarter of fiscal year 1992 and net income of 13 cents per share (basic and fully diluted -- Canadian GAAP) for the fourth quarter of fiscal year 1992.
 The company's order intake was greater than product shipments for the fifth consecutive quarter, as the company continues to build backlog. All regions are experiencing robust business activity with order intake levels in excess of targets. Telephone companies continue to represent an increasing proportion of the company's overall revenue. Seven of the top eight customers in the first quarter were telephone companies. Corporate network sales in the U.S. continued to improve in the first quarter.
 The company generated $7.3M in cash during the first quarter. The cash balances now stand at $24.3M. Inventory levels were reduced during the first quarter by $2,637,000 and are now at their lowest level in almost three years -- despite the fact that sales have grown 77 percent during that same period. Accounts receivable collections have also continued to improve. The number of days sales outstanding in the accounts receivable at the end of the first quarter was 82 days, down from 86 days at the end of the fourth quarter.
 Commenting on the quarter, Newbridge Chairman Terence Matthews said, "The company has started the new fiscal year by demonstrating a continuation of the quarter over quarter business growth and financial improvements which were a feature of last year. Record sales in the first quarter together with a high level of business activity in all regions is an indicator that the MainStreet product line is being successfully deployed in an increasing number of public and private networks. This bodes well for continued growth. The Newbridge successes achieved in the first quarter have taken place against a backdrop of economic conditions which have been responsible for generally poor financial results in many industry sectors both in North America and Europe.
 "Newbridge continues to receive very positive feedback on the MainStreet product line from telephone companies and corporate network users through the world. I am pleased to report that these same clients are particularly receptive to our product plans, including the ATM (Asynchronous Transfer Mode) product direction. The company plans to continue to invest aggressively in research and development."
 Significant accomplishments during the quarter included the signing of contracts with Southwestern Bell and GTE for the complete range of the Newbridge MainStreet product line and the launch by MCI of their plans to build the Federal Aviation Administration (FAA) network in which Newbridge will be a key equipment supplier. During the quarter Newbridge also supplied equipment for the ECO 92 Earth Summit Communications Network in Brazil and the Olympic Games in Barcelona.
 A summary of results follows.
 Newbridge Networks is an international company which specializes in the design, manufacture, marketing and service of voice and data communications equipment for global networks. 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)
 FOR THE QUARTER ENDED
 AUG. 1, AUG. 3,
 1992 1991
 Sales $55,948 $41,123
 Cost of sales 22,758 17,034
 Gross margin 33,190 24,089
 Expenses
 Selling and technical support 14,577 11,310
 General and administrative 3,222 3,379
 Research and development 5,790 5,645
 Income from operations 9,601 3,755
 Interest and other expenses 1,431 2,363
 Earnings before income taxes 8,170 1,392
 Provision for income taxes 1,984 325
 Net earnings $ 6,186 $ 1,067
 Earnings per share
 Basic 18 cents 3 cents
 Fully diluted 17 cents 3 cents
 CONDENSED BALANCE SHEETS
 AS AT AUGUST 1, 1992 AND APRIL 30, 1992
 AUG. 1, APRIL 30,
 1992 1992
 Cash $24,316 $17,019
 Accounts receivable 50,212 48,957
 Inventory 27,214 29,851
 Property, plant and equipment 62,777 62,037
 Other assets 21,198 20,205
 $185,717 $178,069
 Accounts payable and accruals $28,051 $28,876
 Income taxes payable 1,574 682
 Long term obligations 37,305 38,293
 Deferred income taxes 631 488
 67,561 68,339
 Shareholders' equity 118,156 109,730
 $185,717 $178,069
 -0- 9/1/92
 /CONTACT: Jim Marshall or Sandra Plumley of Newbrigde Networks, 613-591-3600/
 (NNCXF) CO: Newbridge Networks Corporation ST: Ontario IN: TLS SU: ERN


PS -- NY073 -- 5602 09/01/92 16:39 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 1, 1992
Words:874
Previous Article:CHAMBERS WORKS UPDATE ISSUED
Next Article:DENVER, COLO. GOs RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
Topics:


Related Articles
NEWBRIDGE ANNOUNCES THIRD QUARTER RESULTS
NEWBRIDGE NETWORKS COMMENTS ON STOCK TRADING ACTIVITY
NEWBRIDGE NETWORKS ANNOUNCES FIRST QUARTER RESULTS
NEWBRIDGE ANNOUNCES RESULTS FOR FISCAL YEAR 1994
NEWBRIDGE NETWORKS ANNOUNCES PRELIMINARY ESTIMATES OF FIRST QUARTER RESULTS
NEWBRIDGE NETWORKS ANNOUNCES FISCAL YEAR 1996 FIRST QUARTER RESULTS
NEWBRIDGE NETWORKS ANNOUNCES RECORD THIRD QUARTER RESULTS
ATTENTION BUSINESS/FINANCIAL EDITORS:
Newbridge Networks Announces Results for Fiscal 1997
ATTENTION BUSINESS/TECHNOLOGY EDITORS:

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