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Technology Stocks : ASND - Discussion, but no quotes
ASND 199.96-0.6%Nov 12 3:59 PM EST

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To: Carl R. who wrote ()9/11/1997 3:20:00 AM
From: Carl R.   of 186
 
CSCO to reduce price on RAS products:

Now here is an important piece of news, which could have easily been miss in today's main thread:

"Cisco shares fall as company talks of price cut on key product".

Cisco plans to cut prices on its remote-access concentrators. This was announced today at the solly conference. It is said that the price cuts will have a small impact on cisco's profit since access concentrators only account for about 3% of their sales. However, Cowen and company analyst Viyay Rajamani says that "any price cuts by Cisco could be a serious problem for Ascend, Ascend gets 55% of its revenue from that product line."

The article also says that Cisco is bringing out a new type of access concentrator that is virtually identical to that of Ascend's. However, "because of the more efficent 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, analyst said."

Carl

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