Newbridge does worse but says it does better
Cost cutting primes company for spin-off
Newbridge Networks made a net profit of C$35.5 million on turnover of C$426 million as it reported its financial results for its first quarter 1998. That compares to net profits of C$64.3 million on turnover of C$434.7 million in the equivalent quarter last year. Shares of Newbridge stock slipped on the news but company officials reported that it had improved financial control and management in the quarter, and that it had also managed to better its cash position. Its core business, which excepts revenues from its UB Networks division had grown 12 per cent from the quarter before, company officials said. The expense cutting and cost management will increase continuing industry speculation that Newbridge is priming itself to sell off one or more of its divisions. Alan Lutz, President and Chief Operating Officer, Newbridge Networks, said: "In discussions I have had with members of the media and the analyst and investment community, I indicated there would be renewed attention within Newbridge to consistent growth in revenue through increased market share in the Company's traditional markets and successful penetration of new markets. As well, I stated that we would bring greater focus on managing the business closely, including the cost structure and balance sheet." ®
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