Ascend First-Quarter Earnings, Sales More Than Double (Update1)
Ascend Communications Inc.'s first-quarter earnings more than doubled, beating analysts' estimates
by a small margin on strong sales of its computer-networking equipment. Profit from operations
rose to $46.3 million, or 36 cents a share, from $19.4 million, or 15 cents, in the year-earlier
period. A pre-tax charge of $18 million related to the purchase of InterCon Systems Corporation
resulted in net income of $35.1 million, or 27 cents, in the most recent quarter. Sales more than
doubled to $202.4 million from $92 million. Shares ranged from 46 to 47 5/8 after the close of
Nasdaq trading. Cascade fell 1 to 30 3/8. Cascade's first-quarter earnings rose from a year earlier
before a charge resulted in a final loss. Cascade's profit from operations rose to $14.8 million, or
15 cents a share, from $10.4 million, or 11 cents. The year-earlier results were restated to account
for the pooling of Arris Networks Inc. A charge of $213.1 million for the acquisition of Sahara
Networks Inc. and in-process technology resulted in a final loss of $198.3 million, or $2.13 a
share, in the recent quarter. There weren't any extraordinary gains or charges in the year-earlier
period.
Cascade Communications 1st-Qtr Profit Rises (Update1)
Cascade Communications Corp.'s first-quarter earnings rose, although revenue growth slowed as
large customers delayed purchases of the company's computer networking equipment. Cascade's
profit from operations climbed to $14.8 million, or 15 cents a share, from $10.4 million, or 11
cents, in the year- earlier period. The year-earlier results were restated to account for the pooling
of Arris Networks Inc. Revenue rose to $90.3 million, up 61 percent from the year- earlier's $56
million, although down 18 percent from the fourth quarter's $110.3 million. The revenue growth is a
slowdown from Cascade's fourth quarter, when sales more than doubled.
IQBAL LATIF
| Bloomberg PERSONALr |
