it's not necessarily a direct response to anything but you might find this interesting:
"
BBN 3/21 Ascend Takes Issue With Cisco, Says Internet Market Is Strong
Ascend Takes Issue With Cisco, Says Internet Market Is Strong
Alameda, California, March 21 (Bloomberg) -- Ascend
Communications Inc. says the Internet market is continuing to
grow strongly and new products are helping it win market share.
``We still see unbridled demand from Internet service
providers,'' said Steven Thomas, Ascend's director of Internet
marketing.
Thomas's optimism was in contrast to a more cautious view of
the Internet market by John Chambers, chief executive of rival
Cisco Systems Inc. Chambers said Tuesday that demand from
Internet companies for computer networking equipment by Cisco and
others was slowing because the providers are cutting back capital
spending until cash flow improves. Shares of Ascend and Cisco
both hit six-month lows this week.
Ascend's Thomas sees the Internet market growing as service
providers continue to sign up new subscribers. In addition, the
service providers are adding more capacity, or bandwidth, to
their systems as Internet users seek to access and retrieve
larger files of information.
That's translating into increased demand for Ascend's access
controllers, which connect phone lines to the computers of
Internet providers, Thomas said.
``Any large (service provider) is looking down the road at
having 10 times the bandwidth'' a year from now, Thomas said.
`If you ask me do we see any slump in the Internet space,
the answer is no'', Thomas said. He also said he was comfortable
with analysts' estimates of its earnings for the first quarter.
Ascend is expected to earn 34 cents a share for the quarter, the
average of 17 analysts surveyed by IBES International Inc.
Paul Wick, manager of the Seligman Communications and
Information Fund, said that while he's still cautious about the
networking industry, he holds Ascend stock.
``They have some products that are absolutely on fire,''
Wick said. His fund has $3.2 billion in assets.
He added that Cisco was suffering because its key product, a
large router, which transmits data between small Internet
providers and the Internet ``backbone,'' was undergoing a product
transition.
Cisco said it doesn't comment on the sales of specific
products.
Cisco shares fell 1/8 to 51 late afternoon trading of 11.7
million, making it the most active stock in U.S. composite
trading. The shares earlier reached 53 18.
Ascend shares were unchanged at 50 1/4 after reaching 52 3/4
earlier today. Late afternoon trading was 5.22 million, higher
than the three-month daily average of 4.75 million.
--Jeff Ferry in the Princeton newsroom (609) 279-4093/rjb |
