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Technology Stocks : Ascend Communications (ASND)
ASND 212.50+1.5%Dec 24 12:59 PM EST

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To: david jung who wrote (10853)9/10/1997 11:44:00 PM
From: david jung   of 61433
 
BN 9/10 Cisco Shares Fall 4.6% as Company Talks of Price Cut (Update1)
"...Cisco said at the Salomon Brothers Technology Conference in
New York that it's planning to cut prices on its remote-access
concentrators, analysts said. The devices are used by Internet
service providers to link hundreds of telephone callers into the
Internet.

Price cuts will have a small impact on Cisco's profit, since
access concentrators account for only about 3 percent of Cisco's
sales, said Cowen & Co. analyst Vijay Rajamani.

Any price cuts by Cisco could be a serious problem for
Ascend, though, Rajamani said. Ascend gets 55 percent of its
revenue from that product line.

Cisco shortly will bring out a new type of access
concentrator that will offer most of the features of Ascend's
products. Because of the more efficient use of custom-designed
chips, Cisco will spend less than Ascend to make the product,
analysts said. That will allow it to price its product below
Ascend's, analysts said.

3Com's sales also may be hurt because it gets about 13
percent of its revenue from concentrators...."
David
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