Newport Networks Share Discussion Threads

[wolterix] 20/6/2008 08:51

a bit fuzzy headed this morning, still think this will be underpinned by the OEM deal, £2mill isn't a great deal in the short term, there again it was £6mill last year, so OK plan is to do a placing in the medium term to raise more cash, or does the OEM kick in financially later this year and IS revenue enhancing 2009?

Ackroyd pretty much confirmed this yesterday on the phone, or rather pretty much confirmed the RNS, and so again my opinion still is that it was a Ronseal, warts and all statement

[jonno1] 20/6/2008 08:30

remember that you can still Spreadbet this with IG, maybe a punt on the March if it sinks further @£10000 a point would only cost £3000-4000, or a rolling daily?

[explorer88] 20/6/2008 08:28

good morning orinocor

i'm happy to stand by my track record (e.g. UBQ and SRF)

i see that your two recommendations, LED and NNG, have not exactly delivered ...


good morning Ch1ck

DYOR : compare my previous recommendations: UBQ & SRF with Orinocor's recommendations: LED & NNG

[orinocor] 20/6/2008 08:10

WARNING:
In my opinion Explorer88 is the most dangerous poster this website has ever known.
Exercise EXTREME CAUTION with regards all his postings.
Take Care.

[explorer88] 20/6/2008 08:02

If you've sold nng recently and are looking to recoup your losses, two companies which are due to report results in the next couple of weeks which, imo, are worth considering are : CESG and TAIH (both are cash rich, generating good growing eps, and have (imo) around 100% short term potential upside to share price )

[george99] 20/6/2008 02:53

IC Wales (Western Mail)

HomeBusinessBusiness News
Newport Networks reports more losses
Jun 19 2008 By Aled Blake, Media Wales

SIR TERRY MATTHEWS has loaned £2m to his Newport Networks company after "disappointing" sales in the last 12 months.

The loan has been made through Wesley Clover, Sir Terry's private investment vehicle, and came as the internet communications company reported a loss of £8.6m in 2007, reduced from £13.7m the year before.

However, Newport Networks, which is chaired by Sir Terry, said a deal to supply its products to an unnamed vendor provides a "foundation for the long term future of the company".

Sir Terry, Wales' richest man, revealed that Newport's board is searching for a new chief executive officer, with current incumbent John Everard becoming the company's vice chairman as it also looks to reduce costs by around 50%.

Alternative Investment Market-listed Newport has been affected by slower-than-expected upgrades by telephone operators of their infrastructure. Its technology integrates traditional telephone systems with online voice technology

In a staunchly-worded message to shareholders, Sir Terry outlined how he sees the company turning around.
He said: "I am very disappointed by the lack of sales for last year and the first half of this year; my disappointment is only slightly tempered by the significant technical and commercial progress made by the company towards building a stable business.

"We live in difficult times in the networking and service provider industry. The large next generation network deployments around the globe, which the Newport equipment has been designed to empower, have continued to be delayed.

"Newport has developed first class core network technology but at a point in time which, in view of market delays, has turned out to be too early for mass deployment.

"While the company has developed a broader range of platform sizes to address the current market for smaller products, this segment has now become highly competitive.

"To respond to the market pressures the company is engaged in a rapid development program to provide the functionality of our existing products on industry standard open platforms. This development has been requested by a number of telecommunications suppliers and operators."

Sir Terry said the completion of an original equipment manufacturer (OEM) agreement with a "world-leading" vendor as well as the development of its border gateway products meant the longer-term future of Caldicot-based Newport was more positive.

He went on: "An announcement was made early this year regarding a large pending contract with a telephone service provider.

"We were hopeful of completing the sale early in 2008 where the contract would have had a material and positive effect on the company's financial situation. However, while negotiations continue, the size of the opportunity has since reduced and the time to contract completion is unknown.

"In light of the prevailing circumstances, Newport is implementing a cost reduction program; the company is being reduced to concentrate on core SBC [session border control] and border gateway market segments.

"This will allow a reduction in the expense run rate of approximately 50% while retaining the core value of our technology and allow the Company to address selected business prospects, including business with the company's major OEM partners.

"The program to make the SBC and BG software applications portable to industry standard open platforms should also increase the attractiveness of the company's range of products.

"Furthermore, I can announce that the board has commenced a search for a new CEO to complement the continuing efforts of John Everard who will become vice chairman and remain on the board of directors. I will announce the appointment in the near future.

"To support the company financially, I have agreed to guarantee the overdraft facilities that the company has with its bankers and arrange for a loan via my investment company, Wesley Clover Corporation.

"In the longer term, the board will consider the available options relating to the raising of further working capital for the company."

END

[wig123] 19/6/2008 23:19

Graham 142, going to put your views across at the AGM?

[poppadomonlinedotcom] 19/6/2008 19:15

Not to worry.........

poppadomonline.com

[wolterix] 19/6/2008 15:35

fair enough, the last paragraph I feel they may be addressing, maybe part of me thinks they are a one-trick pony, always has been a risky hold, no question

anyways thanks for the post

[explorer88] 19/6/2008 15:28

hi wolterix

i can't predict the short term price movements of the share price - could equally rise or fall 50% from current level (therefore doesn't appear to be an attractive short term proposition, compared to the other companies i'm invested in or tracking, which are churning out sales and profits, have cash in the bank and have 100% short term upside potential, with little downside risk).

key question for me in deciding whether to re-invest in nng in the longer term is whether it can generate meaningful sales. yes, it has the OEM agreement with NSN; but it also has four other major OEM agreements, signed in the past three years, which have yielded negligible sales.

in the last few months i've been talking to other companies in this sector (like acme) and their response is that they don't believe nng has the right product - the market is changing rapidly and, quite simply, nng (they feel) is not in the right place at the right time with the right product (edit: hence why they're not selling anything).

good luck!

[jbertybassett] 19/6/2008 15:27

Wolterix - yeah which was mentioned months ago and the other contracts have not be procured as they wanted initially(telephone contract). I think all of this news should not have come out at the same time and although i think the selling has been overdone, can't see it retracing too much.

[wolterix] 19/6/2008 15:18

they have signed a major agreement

[jbertybassett] 19/6/2008 15:16

Looking at the companies financials, although they are trying to improve them, the lack of revenue vs. expenditure and associated numbers is a daunting thing for anyone to buy into. I don't think they have any serious future unless they sign a major agreement and can't see that happening soon as the possibility would have been mentioned in the RNS.

[jwoolley] 19/6/2008 15:15

I think this has been well overdone but it did give me a opportunity to buy 500k....reckon it will stay where it is today but tomorrow will have a slight correction between 0.8p - 1p....holders...stay cool...have a joint and chill out...good luck all!!

[wolterix] 19/6/2008 15:07

no gloating now, this does seem like an overreaction, if you can ignore the potential flak, e88, your thoughts would be appreciated, by me at least

[explorer88] 19/6/2008 15:04

any Port in a storm ?

[wig123] 19/6/2008 15:01

one mans poison is anothers pleasure

[explorer88] 19/6/2008 14:51

i'll buy you all a barrel of rum to drown your sorrows

[wig123] 19/6/2008 14:47

Make that a Port, by the bottle full here please.

[wolterix] 19/6/2008 14:39

hmm not tea time yet, although a small sherry would be nice

[big dog5] 19/6/2008 14:33

You must be refering to the PAMPER!- ramper that full of SH*T!