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NEWBRIDGE NETWORKS ANNOUNCES SECOND QUARTER RESULTS

 NEWBRIDGE NETWORKS ANNOUNCES SECOND QUARTER RESULTS
 KANATA, Ontario, Dec. 3 /PRNewswire/ -- Newbridge Networks


Corporation (NASDAQ/NMS: NNCXF) today announced financial results for the second quarter of fiscal year 1992 ended Nov. 2, 1991.
 Revenues for the quarter were recorded at $42,286,000, representing a 7 percent increase over revenues for the same period of last fiscal year. Sales were up over the first quarter fiscal 1992 levels in Europe and the Americas region. Net income for the quarter was $1,589,000 (5 cents per share basic and fully diluted -- Canadian GAAP), compared to a net loss of $2,726,000 ((8 cents) per share basic and fully diluted -- Canadian GAAP) for the same period of fiscal year 1991 and almost 50 percent over the net income of $1,067,000 for the first quarter of fiscal year 1992. For the first two quarters of fiscal 1992, net income was $2,656,000 (8 cents per share fully diluted -- Canadian GAAP), compared to a loss of $2,546,000 (7 cents) per share basic and fully diluted -- Canadian GAAP) for the same period of fiscal 1991.
 Operationally the company continues to reduce costs while maintaining its dedication to efficiency and quality. Cash increased during the second quarter by more than $2,000,000 to $3,685,000. The overall inventory level was reduced during the second quarter by $2,130,000, and now stands at the lowest level in almost two years.
 Commenting on the quarter, Newbridge Chairman Terence Matthews said, "The results show that despite the continued recessionary tendencies of Europe and the United States, the company achieved record quarterly sales. I am particularly pleased to report that in the United States, perhaps the hardest hit by the economic recession, the company increased its equipment sales for the fourth consecutive quarter. The company's record sales, along with operating cost being reduced for the third consecutive quarter, substantially improved the company's profitability.
 "The TELECOM 91 show in Geneva in early October was an outstanding success for Newbridge. The company demonstrated the new feature-rich NP4 generic of the MainStreet(R) product line, heart of the Newbridge Business Networks Architecture. We also introduced several new products including: the 36150 MainStreet Communications Network Processor, a high speed ATM switch; E-3 and SONET/SDH interfaces for the 3645 MainStreet High Capacity Bandwidth Manager; a 5633 MainStreet AT&T ACCUMASTER Integrator interface; a new line of transmission access products for bandwidth on demand services, called TAP; and the ONE MainStreet Open Network Engine, a powerful communications application processor product.
 "The Newbridge stand also featured a network managed by the 4602 MainStreet Intelligent NetworkStation(TM) featuring network partitioning software. This display attracted considerable attention because Newbridge is the only company today supplying network partitioning, a feature integral to the outsourcing programs of telephone companies and carriers. Newbridge also displayed live network management with both AT&T and Telecom Denmark. In summary, Newbridge demonstrated the capabilities of its Business Networks Architecture over the spectrum of WAN, LAN and MAN networking.
 "I am also particularly pleased about signing a worldwide distribution agreement with Siemens at Geneva. Newbridge product is now distributed by three of the largest telecommunications suppliers in the world, Alcatel, AT&T and Siemens, all of whom displayed Newbridge product at their stands in Geneva."
 Also at TELECOM 91, Newbridge signed an agreement to provide its full range of MainStreet products to Syncordia, the new British Telecom plc (BT) international communications company which provides tailor-made global data, image and voice communications networks to multi-national companies wishing to outsource their communications needs. The signing of the agreement consummates an arrangement under which Newbridge has supplied BT with equipment since last fiscal year. The company also signed a joint development agreement with BT covering the development of an interface between the Newbridge network management system and the BT Concert integrated management system.
 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 the Soviet Union.
 NEWBRIDGE NETWORKS CORPORATION
 Condensed Statements of Earnings
 (Canadian dollars in thousands, except per share data)
 For the quarter ended For the two quarters ended
 Nov 2, Nov 3, Nov. 2, Nov. 3,
 1991 1990 1991 1990
 Sales $42,286 $39,443 $83,409 $77,559
 Cost of sales 17,921 15,610 34,955 30,639
 Gross margin 24,365 23,833 48,454 46,920
 Expenses
 Selling &
 technical support 11,311 13,150 22,621 25,433
 General &
 administrative 3,360 3,606 6,739 7,896
 Research &
 development 5,263 4,069 10,908 8,232
 Income from 4,431 3,008 8,186 5,359
 operations
 Interest and other 2,467 2,804 4,830 5,075
 Restructuring costs -- 3,510 -- 3,510
 Earnings before 1,964 ( 3,306) 3,356 ( 3,226)
 income taxes
 Provisions for
 (recovery of)
 income taxes 375 ( 580) 700 ( 680)
 Net earnings $ 1,589 $(2,726) $ 2,656 $(2,546)
 Earnings(loss) per share
 Basic 5 cents (8 cents) 8 cents (7 cents)
 Fully diluted 5 cents (8 cents) 8 cents (7 cents)
 CONDENSED BALANCE SHEETS
 As at Nov. 2, 1991 and April 30, 1991
 Nov. 2, April 30,
 1991 1991
 Cash $ 3,685 $ 4,584
 Accounts receivable 42,336 39,088
 Inventory 32,302 36,996
 Property, plant and equipment 63,133 62,800
 Other assets 21,225 18,928
 Total 162,681 162,395
 Accounts payable and accruals $ 24,333 $ 24,584
 Income taxes payable 103 106
 Long term obligation 35,588 37,501
 Other liabilities 693 706
 Total 60,717 62,897
 Shareholders' equity 101,964 99,498
 Total 162,681 162,395
 -0- 12/03/91
 /CONTACT: Jim Marshall or Sandra Plumley of Newbridge, 613-591-3600/
 (NNCXF) CO: Newbridge Networks Corporation ST: Ontario IN: CPR SU: ERN


JT -- NY099 -- 8941 12/03/91 17:33 EST
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Date:Dec 3, 1991
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