ALAMEDA, Calif.--(BUSINESS WIRE)--Sept. 29, 1997--Ascend
Communications, Inc., (NASDAQ:ASND) today announced that, based on current information, the company expects that revenues for its third quarter ending September 30, 1997 will be in a range of $260-270 million, up from $249 million reported in the same quarter a year ago. The company expects that earnings per share for the third quarter will be in a range of $0.18-0.20 per share,down from $0.29 per share in the year-ago period. The earnings per share in the year ago period exclude one-time acquisition related charges taken during that
period. The company's current expectations for the growth of revenues and earnings per share are below the expectations of most securities analysts.
"We are facing a significant shortfall in revenues this quarter," said Mory Ejabat, Ascend's president and chief executive officer. "This shortfall is largely related to delays in rolling out our MAX TNT product to our international customers as well as softness in demand for access ports in selected geographic regions outside
of North America. More specifically, we have seen demand for PCs in Japan
slowing throughout the year, resulting in a slowdown in demand for ports, while
subscriber growth in Southern Europe has lagged behind the network build-outs that took place earlier this year. The result is that we are facing a significant shortfall in our international revenues this quarter." Ascend expects to release final results for the third quarter on October 9, 1997.
The revenue and earnings expectations contained in this press release constitute forward-looking information and actual results could differ materially based upon the results of the final audit. For a more detailed discussion of the risks and uncertainties related to the Company's business, please refer to the Company's periodic reports and registration statements filed with the Securities and Exchange Commission. Ascend Communications, Inc. develops, manufactures and sells wide area networking solutions for telecommunications carriers, Internet service providers and corporate customers worldwide. For more information about Ascend and its products, please visit the Company's web site at ascend.com, or email info@ascend.com . (See also: businesswire.com)
Copyright 1997, Business Wire
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