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Technology Stocks : Ascend Communications (ASND)
ASND 207.04+0.7%Dec 8 3:59 PM EST
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To: Glenn D. Rudolph who wrote (14742)9/27/1997 9:50:00 PM
From: Sector Investor   of 61433
 
Glenn,

The Barron's "journalist" put a negative spin on the fact that ASND
corrected the UUNET news release from 170,000 switches to ports.
The person tried to downplay this as "50 times lower than it
first appeared".

I have to SINCERELY apologize to the thread for CASUALLY and
IRRESPONSIBLY estimating the 170,000 TNT switches at 12-13 years
of ASND revenue, completely off the top of my head.
I couldn't let this GROSS underestimate go without looking up
the "real" numbers.

Base TNT list is $60,000, but the multi-shelf configuration
(probably what UUNET buys) lists for $300,000.

170,000 switches X $60,000 = $10.2 BILLION or $51 BILLION for the
larger boxes. Leaving off Morrie's discount, this comes out to
between 8.5 and 51 years of current year ASND revenue.

Again, I apologize for this inaccuracy.

**********************************************************

Glenn, this was a test. Did you detect the tongue-in-cheek tone of the
above? You say you never get a joke - I just thought I'd test you.

How could that "journalist" say that was how it "appeared"? Who in their
right mind would take that 8.5 to 51 years of revenue in a three month
period as plausible and then ridicule it? This was one of the most
irresponsible and self-serving articles I have ever read. I wonder
if he has an E-Mail address?
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