Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 209.15

-1.5%

Nov 20 3:59 PM EST

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To: Tony Dang who wrote (21348)	11/5/1997 8:19:00 PM
From: sepku	Read Replies (3) of 61433

>>>Ascend's revenue and earnings are doomed for next quarter. What coporate buyer is going to buy concentrators this next quarter when he can wait a quarter and save 25% and be a hero.<<< Those price cuts are LIST prices, not street prices which have been falling in RAS for the past few quarters already. The list prices haven't caught up with the street prices yet to figure in how much they've really been discounted. Also, the price cuts to street prices will only be 10% for the first half of 1998. Also, just because revenues from RAS sales will be shaved does not mean eps will be "doomed". Be realistic...and take note of the projected margins that was also mentioned. Margins have been 65%. This is expected to fall to 62% at worst case, and 64% in best case. ASND will compensate to the RAS price cuts through trimming expenses and restructuring the discount levels for large clients. You really should take the whole article into context. Style Pts.

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