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Technology Stocks : Ascend Communications-News Only!!! (ASND)

ASND 197.33

-5.3%

Nov 5 3:59 PM EST

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To: Tech97 who wrote (1339)	4/2/1998 7:00:00 AM
From: Sector Investor	Read Replies (1) of 1629

Synopsis of J. P. Morgan comments: PSINET TO BUY 50,000 MAX TNT PORTS PSINET, one of the largest independent ISPs and one of ASND's top three customers [must mean on the RAS side] announced a new contract to purchase 50K TNT ports. They estimate the value to be between $15M and $20M recognized in Q2 and Q3, and adds to the backlog. The ports will consist of both ISDN and standards compliant 56K modems and will primarily be installed in existing POPs in Canada, the U.S. and Europe. They believe the European deployment is a "key positive" because it shows that TNT 56K SW issues are a thing of the past. They also believe that this is just the start of several quarters of strong demand in Europe. They believe that PSI had been "somewhat skeptical" in the past about TNT reliability, and that this order is a "clear affirmation" that the TNT is at "the top of it's class". The recent SW upgrades have made the product more stable and reliable and is "reestablishing trust" with major customers. Most of the TNTs will deploy in large metro areas where PSI is seeing strong demand from CLECs and other carriers for access into it's new OC-48 backbone. JPM believes this demand trend will continue for all RAS vendors. JPM expects ASND to report $0.26 [penny over], and they expect revs to be driven by strong ATM and F/R sales, plus increasing health in RAS/RAC. They expect next generation TNT this Summer. They are "bullish" on ASND's WAN ATM prospects and say that the CBX500 and GX550 are being "well received" by carrier and ISP customers. They reiterate Buy and have a 12 month target of $55.

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