Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 209.43

-0.2%

Dec 23 3:59 PM EST

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To: Chi-X who wrote (12108)	9/12/1997 7:25:00 PM
From: Jeff Sheeran	of 61433

Yeah the downgrades look pretty ugly. Did anyone else notice this? In the comments from H&Q yesterday it was stated "Hambrecht & Quist on Thursday cut earnings estimates for Ascend Communications based on the belief that revenues will be hurt by lower than anticipated European sales. " NOw looking at 3COM comments on merger Wednesday by De Simone he stated "``We merged on June 11 with U.S. Robotics. August 31 we had closed the first quarter as a combined company, and in Europe we have achieved the highest level of growth in a long time.'' ". Then in Wall St. Interactive edition last night is stated "Another analyst, Richard Woo of Thomson Kernaghan & Co., said there is concern that sales of Ascend's 56-kbps card have lagged due to delays in approval of the product by a European regulatory agency. "The technology demand for [K56flex] is obviously there, but the delay in terms of getting European approval is a swing factor" that could negatively affect the company's sales in the third quarter, Mr. Woo said." So I can't help but to belive that all of this is about Kflex vs. X2. My reasoning is that 3Com is talking about good sales in Europe, BAY came out last month and said it was going to meet its quarter, BAY liscensed X2. ASND is downgraded over concearns in Europe related to delay and aproval and the CSCO Kflex is pretty much non existent acording to a post made here earlier today. Has anyone heard anything about the ITU meetings? Were they not supposed to meeet today? In my personal opinion, not saying that it is worth much. The lack of a standard is hurting ASND. 3COM has launched a major campaign on TV with their X2 comercials and they have an agreement with Townshend. If townshend patents are approved then will be royalty of $9 per port and $1.25 per modem. Will thes liscensing fees eat into ASND margins? I know they are not much but is something to think about. I just think there is a hell of a lot going on right now that is not being stated. I have tried to verbalize what I believe. I like ASND but am heavy in 3COM for the above stated reasons. I hope that this post is not taken as spamming, I am just trying to put the puzzle together like the rest of you. I hope that this can add something to this thread. I have taken much from it. Thank you all. Regards, Jeff Sheeran

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