Telaxis Communications Sees Opportunity in Alcatel's Acquisition of Newbridge Networks

Telaxis Communications, a leading provider of broadband wireless access equipment, has expressed enthusiasm over the announcement that Newbridge Networks Corporation will be acquired by Alcatel. As a significant customer of Telaxis, the acquisition presents a great opportunity for the company to build on its existing relationship and expand its business. Telaxis' President and CEO, John Youngblood, stated that the company's products have contributed to Newbridge's success in the LMDS market, and that Alcatel's focus on providing fast Internet access and the two companies' synergies for addressing the fast-growing broadband wireless access market create a promising outlook.

Key Takeaways:

• Telaxis Communications sees opportunity in Alcatel's acquisition of Newbridge Networks Corporation, citing synergies for addressing the fast-growing broadband wireless access market.
• Telaxis' President and CEO, John Youngblood, stated that the company's products have contributed to Newbridge's success in the LMDS market.
• Alcatel's focus on providing fast Internet access and its broad geographic presence create opportunities for Telaxis to expand its business.
• Telaxis believes its planar products can be cost-effectively deployed in larger scale network buildouts, and that Telaxis is the only provider of planar equipment in volume production today.
• Telaxis has developed two families of broadband point-to-multipoint wireless access products, including modular and planar products, which can be tailored for competitive site demonstrations and initial commercial deployments.
• Telaxis' products have been designed into the network architectures for most of Newbridge's existing broadband wireless access customers, and the company has been rapidly increasing production to satisfy existing orders.

Statistics:

• Telaxis Communications has developed two families of broadband point-to-multipoint wireless access products.
• The company's modular products can be rapidly tailored for competitive site demonstrations and initial commercial deployments.
• Telaxis' planar products can be mass-produced using low-cost, highly automated manufacturing techniques for cost-effective deployment.
• The company's products have been designed into the network architectures for most of Newbridge's existing broadband wireless access customers.
• Telaxis has been rapidly increasing production to satisfy existing orders.

Sources:

• Business Wire, "Telaxis Communications Corporation Responds to Newbridge Networks Corporation Acquisition", February 23, 2000
• Telaxis Communications Corporation, initial public offering prospectus, February 1, 2000