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Technology Stocks : Ascend Communications (ASND)
ASND 199.63-1.4%3:59 PM EST
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To: Zoltan! who wrote (8598)8/12/1997 11:45:00 AM
From: giles   of 61433
 
ASND's earnings last QTR caused considerable confusion b/c of the merger. ASND by itself did hit earnings estimates but the merger was dilutive to the tune of .04 and with the merger they fell short but still grew by 40%. IMHO it would have been better for ASND to state that the merger was going to be dilutive if they knew that, but the merger occurred on the last day of the QTR and in theory ASND had little control of CASCADE until the final day of the QTR. Had they waited one more day to merge on July 1, the company would have reported .35 earnings on stand alone sales and they would have then, in theory and in practice the whole 3rd QTR to work on the merger b/f reporting publicly the first time.

I don't think ASND can correct the FIRST CALL 2nd QTR estimates b/c it would require polling the covering brokers to determine if their estimate was for ASND as a stand alone company or ASND the combined company albeit for one day, the last of the QTR.

I do think that for some the "stigma" of possibly, probably or allegedly not making 2nd QTR as a merged company for one day affects their perception. I also think that others understand the merger issue and for them it is a nonissue now, especially with the more current issues that exist.
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