Newbridge Networks (NYSE: NN) gained more than 7 percent Thursday after the company said it sees strong fourth quarter results.
The maker of networking equipment said overall revenue in the fourth quarter will meet or top analyst forecasts. First Call's survey of 15 analysts predicts a profit of 15 cents per share for the quarter ending April 30.
Shares of Newbridge rose 2 1/4 to 31 5/8 following the announcement Thursday afternoon. The stock price of Alcatel (NYSE: ALA), which recently agreed to buy Newbridge, rose 3 to 41 1/2.
Switches and other broadband access products are on track to meet revenue expectations, Newbridge said. "Our expected revenue in this quarter is continued proof that Newbridge and its employees have succeeded in our ambitious plans to restructure the company," said Pearse Flynn, president and chief operating officer.
Thursday's news marks the second strong quarter for Newbridge after a slew of disappointments. In the third quarter Newbridge beat analyst forecasts by 2 cents per share.>