Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 204.41

-1.0%

Nov 14 9:30 AM EST

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To: Gary Korn who wrote (30686)	1/16/1998 9:07:00 AM
From: IncredibleHult	Read Replies (3) of 61433

ASND: UPGRADED TO BUY FROM LTA AND ESTIMATES RAISED ON SIGNS OF ACCELERATING DEMAND... ú Greatly improved financial performanceAscend is expected to report financial results on January 20, 1998; we fully expect the results to be at the high-end of expectations. We believe that the results will show an improvement in the quality of earnings in the quarter, both in terms of accounts receivables and inventories. We also expect the company to report that visibility on demand has improved greatly. We expect street estimates to increase after the quarterly release. ú An acceleration in demand for the company's core switching products_primarily the CBX500 and recently introduced GX550 ATM products from Cascade. Recent discussions with carrier customers have indicated that demand for core ATM products is beginning to accelerate and that the GX550 is potentially a "killer product." We believe that Ascend's CBX500/GX550 could emerge as one of the few critical components within next-generation carrier networks. ú A more stable business environment-in terms of pricing and unit demand_for Ascend's traditional businesses, both remote access (MAX TNT) and frame switching (STDX 8000/9000). These two product areas were the primary cause of the financial shortfall in the September quarter. Despite continued competitive pressures in these markets, we are now forecasting a slowing in the price erosion in the market. These business are not completely out of the woods, but the environment now appears to be more stable. We are raising our EPS estimates for fiscal 1998 to reflect these changes in assumptions. We are initiating a fiscal 1999 estimate as well.

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