Wall Street Journal's Positive remarks on ASND
April 9, 1998
Ascend Meets Street's Forecasts,
Helped by Network-Gear Demand
An INTERACTIVE JOURNAL News Roundup
Ascend Communications Inc. reported net income for the latest period
Thursday that was in line with analysts' estimates.
For the first quarter ended March 31, the Alameda, Calif., maker of network
equipment reported net income of $52.4 million, or 26 cents a share,
compared with a net loss of $163.2 million, or 88 cents a share, in the same
period a year ago. The year-ago results included a $231 million charge for
purchased research-and-development costs.
Revenue, meanwhile, rose to $305.1 million from $292.7 million in the
year-ago quarter.
Shares of Ascend slipped 81.25 cents to $39.875 on the Nasdaq Stock
Market Thursday. The results were released after the close of trading.
Mory Ejabat, Ascend's president and chief executive officer, said the
company continues to see strong demand for networking gear and expects
growth from the consumer segment will drive demand for access ports.
"We believe that the market opportunities are significant, that Ascend is well
positioned within those markets, and that our strategy is sound," he said.
Mr. Ejabat said Ascend's access-switching unit showed strong growth driven
by demand in North America and the strength of the company's MAX TNT
product among network-service providers. He added that Ascend saw
increased demand for high-speed DSL products. |
