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NEWBRIDGE NETWORKS ANNOUNCES RESULTS FOR FISCAL YEAR 1993

 KANATA, Ontario, June 1 /PRNewswire/ -- Newbridge Networks Corporation (NASDAQ-NMS: NNCXF) today announced financial results for the company's fiscal fourth quarter and fiscal year ended April 30, 1993. The financial performance of the company showed substantial improvement quarter over quarter; revenues, net earnings, cash position, order intake and backlog all increased significantly over previous quarters.
 Sales for the fourth quarter of fiscal year 1993 were $100.4 million, an increase of 93 percent over the corresponding quarter of fiscal year 1992. Net earnings for the fourth quarter of fiscal year 1993 were $25.5 million (65 cents per share basic and 61 cents per share fully diluted - Canadian GAAP) compared to $4.7 million (13 cents per share basic and fully diluted - Canadian GAAP) for the fourth quarter of fiscal year 1992. Revenues for fiscal year 1993 were $307.6 million, up 70 percent over fiscal year 1992 revenue of $181.4 million. For the 1993 fiscal year the company recorded net earnings of $60 million ($1.63 per share basic and $1.53 per share fully diluted - Canadian GAAP) versus 1992 fiscal year net earnings of $9.8 million (28 cents per share basic and fully diluted - Canadian GAAP).
 During the fourth quarter order intake exceeded shipments and backlog increased for the eighth consecutive quarter. Orders for the MainStreet(R) line of digital networking products more than doubled those of fiscal year 1992 reaching record levels in all business regions. Telephone companies represented an increasing proportion of Newbridge business both in product sales and service revenues. Business activity was particularly strong in the Asia/Pacific area and with U.S. corporate network customers.
 Cash and short-term investments at the end of fiscal year 1993 stood at $200 million. Collections were at a record level in the fourth quarter, reducing days sales outstanding in accounts receivable to 63 days. Inventory turnover again improved during the fourth quarter and now stands at six times per year.
 "Fiscal year 1993 was successful for Newbridge from both a financial and technological perspective," commented Newbridge Chairman Terry Matthews. "During the year we announced the sale of several important digital overlay networks that allow carriers to offer sophisticated communications services to their business customers. Some of these represent new global services. In March we announced that the company was selected by FNA, a financial network association of 19 telephone companies, to supply products to allow the construction and network management of the FNA global financial network. In April NYNEX announced that MainStreet intelligent digital networking equipment would form the foundation of the NYNEX-wide Enterprise Services and Southwestern Bell Telephone chose Newbridge products for a new network services offering called Transport Resource Management.
 "I am pleased to report that Newbridge Frame Relay products have gained wide acceptance with our customers. For example, Pacific Bell has announced that it has chosen the 36120 MainStreet Packet Transfer Exchange for the Frame Relay service planned for roll out this year.
 "During the fiscal year Newbridge introduced a number of significant technological advances in the MainStreet product line. In October an agreement was signed with MPR Teltech to combine the Asynchronous Transfer Mode (ATM) development programs of both companies under the Newbridge umbrella. As planned, this relationship has accelerated the delivery schedule for the Newbridge 36150 MainStreet ATMnet(TM) Switch, sales of which have contributed to fiscal year 1993 revenues. Also in October Newbridge formed a strategic alliance with Advanced Computer Communications (ACC) to develop jointly internetworking products. The first products resulting from this relationship have been developed and customer feedback has been excellent. This spring the company introduced VIVID, a new ATM initiative formed to exploit emerging and ongoing real-time multimedia LAN opportunities.
 "Business activity for Newbridge is at a high level around the world. The company's strong cash position resulting from operating income and the successful public offering in December 1992 will ensure that we have the resources necessary to address optimally the significant business opportunities presented by user demands for bandwidth intensive networking applications."
 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 1993 1992 1993 1992
 Sales $100,415 $52,050 $307,570 $181,369
 Cost of sales 34,982 21,859 115,949 76,449
 Gross margin 65,433 30,191 191,621 104,920
 Expenses
 selling and
 technical support 17,750 12,854 63,492 47,098
 General and
 administrative 4,414 3,682 14,733 13,937
 Research and
 development 8,034 4,815 26,746 21,054
 Income from
 operations 35,235 8,840 86,650 22,831
 Interest income
 (expense) 1,170 (1,187) 181 (6,222)
 Other income
 (expenses) (341) (1,665) (2,611) (3,695)
 Earnings before
 income taxes 36,064 5,988 84,220 12,914
 Provision for income
 taxes 10,549 1,288 24,198 3,137
 Net earnings $25,515 $ 4,700 $60,022 $ 9,777
 Earnings per share
 (Cdn GAAP)
 Basic $0.65 $0.13 $1.63 $0.28
 Fully diluted $0.61 $0.13 $1.53 $0.28
 NEWBRIDGE NETWORKS CORPORATION
 Condensed Balance Sheets as at April 30, 1993 and 1992
 (Canadian dollars in thousands)
 At April 30, At April 30,
 1993 1992
 Cash and short term investments $199,855 $ 17,019
 Accounts receivable 69,424 48,957
 Inventory 23,322 29,851
 Property, plant and equipment 66,472 62,037
 Other assets 24,804 20,205
 Total $383,877 $178,069
 Accounts payable and accruals $49,999 $28,876
 Income taxes payable 10,401 682
 Long term obligations 33,178 38,293
 Deferred taxes 2,145 488
 Sub-total 95,723 68,339
 Total 288,154 109,730
 Shareholders' equity $383,877 $178,069
 -0- 6/1/93
 /CONTACT: Jim Marshall or Sandra Plumley of Newbridge Networks Corporation, 613-591-3600/
 (NNCXF)


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

WB -- NY099 -- 4181 06/01/93 18:04 EDT
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Date:Jun 1, 1993
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