Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 204.11

+1.9%

1:38 PM EST

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To: The Thrifty Investor who wrote (15282)	9/30/1997 1:59:00 AM
From: Chuzzlewit	of 61433

Thrifty, I must disagree with your point about lack of earnings visibility. A sale is defined a occuring when product is delivered to the customer, not when the order is written. This is a manufacturing company, and it needs lead-time to fabricate and deliver product. You are correct that a company doesn't know what it's earnings will look like until the quarter is over, but a company like this should have a good idea of what it's sales will look like long before the quarter is over, and clearly the earnings drop has been caused to a great extent by a shortfall in sales. Perhaps this sales shortfall was caused by manufacturing problems, but I believe management referred to softness in orders. Regards, Paul

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