Newbridge profits on track, despite component shortage worries

Newbridge Networks is on track for record sales of more than US$359 million in the current quarter. The Ottawa-based firm, which announced its $7.1 billion sale to France's Alcatel in February, says sales strength was based on strong demand for its core broadband switches and broadband access products.

The company said it released the statement because of queries about possible component shortages across the industry affecting its ability to fulfill orders. Tellabs Inc. (Lisle, IL) warned investors on Wednesday that component shortages would cause it to miss profit forecasts by about 10%, despite strong sales.

Newbridge spokeswoman Sarah Miller says the company is having no trouble filling orders for its telecommunications products.

President Pearse Flynn said in a statement "our expected revenue in this quarter is continued proof that Newbridge and its employees have succeeded in our ambitious plans to restructure the company."

Newbridge ended its third quarter period on January 29 with sales of US$359 million. The current quarter ends on April 30, and the company says it is confident it will meet or exceed forecasts. Wall Street analysts expect Newbridge to show a profit of $0.15 to $0.17 per share.