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Technology Stocks : Ascend Communications (ASND)
ASND 208.59+4.1%Dec 4 3:59 PM EST
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To: djane who wrote (52446)8/21/1998 2:41:00 AM
From: djane  Read Replies (1) of 61433
 
ASND/SRA transition issues (from Yahoo thread)

Message 20329 of
20447
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ely34
lo_t
Aug 18 1998
4:04AM EDT

Sorry I didn't make myself clearer (it was a Monday morning
and all that!).

As for the percentage of the companies workforce involved in
the telco side it's hard to quantify. From what I have heard the
SRA management are still trying to figure out who fits where
(as in the telco or non-telco side) and this won't be decided
for a while. The split is not quite as black and white as you
may think. Take their engineering dept for instance.

All those working with their new product (Harmony) will go
to ASND (that was in the agreement with SRA). However
those giving product support for the computer side will stay
with the divested part. But what about those engineers that
don't fit in either catagory? Is the R&D dept going to be split
down the middle or is it going to the non-telco side? Then
with the sales force...some are moving over some are
not...and what about SRAs manufacturing facility...are ASND
going to take it or leave it for the divested part?...are they
going to use it to manufacture their own products?...are they
going to produce their products on the same shop floor as
SRA? As far as I can make out there is a bit of confusion.

Back to the servicing agreements. I'm not talking about
software support but hardware support! SRA have service
agrrements that can last 10 years or more (remember SRA is
primarily a h/w company with some s/w subsiduaries such as
S2). SRA will still design and produce their products (Radio,
Continuum etc.) which in turn will be used by ASND. SRA
will hold the servicing agreements to provide product support.
Thus if ASND have a hardware problem (in any product
other than Harmony) they will have to turn to SRA.

As for the divesting...word has it that the software
subsiduaries of SRA will be sold off to the highest bidder and
that they are looking for a "management buyout" for the
computer side making it an "indepentent" company.

But hey...stranger things have happened.

L

ps sorry if this is incoherent but it is verrryyyy early in the
morning ;)
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