ATM Sales Give Newbridge Modest 1Q Gain

Newbridge Networks Corp. posted modest gains for the first quarter of its fiscal year 2000, reporting revenue of $495 million (Canadian), up from C$426 million posted in the first quarter of last year.

Sales of Newbridge's asynchronous transfer mode-based networking equipment grew by 60% in the past year to nearly C$500 million, according to the company. Roughly 20% of equipment sales went to business users, the rest to service providers.

Newbridge's management hasn't made any significant corporate or product announcements after unspecified operational issues prevented it from fulfilling orders in the last quarter. "We needed to reestablish our credibility," said Newbridge president Alan Lutz. He added that the operational issues have been addressed and that the company is now ready to move on.

Newbridge says it expects to push into IP networking and reveal details of its strategy within a month. The company is rumored to be considering acquiring Ironbridge Networks Inc. and Northchurch Communications Inc., developers of IP-based switches for carriers' networks.