ASCEND COMMUNICATIONS, INC. ANNOUNCES FINANCIAL
RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 1997
Alameda, CA, April 10, 1997 -- Ascend Communications, Inc. (NASDAQ-ASND)
today reported its financial results for the first quarter ended March 31,1997.
First quarter net sales were $202.4 million, up 120% over $92.0 million reported
for the first quarter of 1996. Net income for the first quarter was $46.3 million, or
$0.36 per share before the effect of an $18 million charge for purchased
research and development relating to the purchase of InterCon Systems
Corporation. The growth in net income represents a 139% increase over net
income of $19.4 million or $0.15 per share for the first quarter of 1996. After
reflecting the non- recurring charge for purchased research and development,
net income and earnings per share were $35.1 million and $0.27, respectively.
Reported financial results do not reflect financial results or the cost of the
merger with Whitetree Communications, Inc., which closed on April 1, 1997.
Commenting on the financial results and other activities during the quarter,
Mory Ejabat, president and chief executive officer of Ascend, said, "We are
pleased with both the financial results and business progress we are able to
report for the first quarter of 1997. Our financial results reflect strong customer
acceptance of and demand for our MAX TNT product, which contributed to our
revenues for the first time this quarter. We are also pleased to report that our
GRF 400 product contributed for the first time to revenues this quarter, giving
testimony to the strong reception that the GRF is enjoying among Internet
Service Providers and carriers."
Mr. Ejabat continued, "On the business front, we were delighted to announce on
March 31 that we would acquire Cascade Communications Corporation. The
combination of Ascend and Cascade will uniquely position us to provide the
end-to-end networking solution needed by today's ISP, carrier and enterprise
networks. We are very pleased that Dan Smith and "Desh" Deshpande will be
joining our management team to help guide the combined company as we strive
to increase our leadership in the four key areas of the emerging network
infrastructure - Access Switching and Concentration, IP Switching, Backbone
Switching and Remote Products." |
