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Technology Stocks : Ascend Communications (ASND)
ASND 209.40-1.5%3:04 PM EST

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To: Glenn D. Rudolph who wrote (28737)12/28/1997 11:15:00 AM
From: scott maragioglio  Read Replies (1) of 61433
 
Glen,
You are right, price per port is coming down because the cost per port to Ascend ( and everyone else for that matter) is falling. That cost saving is past along to the end user. There is only a 1% decrease in margin expected this year. The biggest change in this years business model vs last year is a sharp increase in R+D spending. Because of ASIC chips technology we will see a continued trend of lower price per port this year but margins remaining roughly stable.
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