CNNfn - ASND Sees Strong Demand for the rest of '98
Computer networking
company sees strong demand
for rest of 1998
April 9, 1998: 6:53 p.m. ET
NEW YORK (CNNfn) - Ascend
Communications, Inc. on Thursday reported
first-quarter earnings of 26 cents a share,
edging analyst estimates of 25 cents a share.
The computer networking giant posted a
loss of 88 cents a share in the first quarter a
year ago..
Ascend reported a profit of $52.4 million on
$305.1 million in revenue for the quarter,
compared with a loss of $163 million on $292.7
million in revenue in the year-ago quarter.
Mory Ejabat, Ascend president and chief
executive officer, said he expects strong
demand for networking products for the rest of
1998.
"North America in particular showed
strength driven by strong demand for access
ports," he said. "We expect growth from the
consumer segment, driven by both new
subscribers and increasing connect times, will
drive demand."
Ejabat also cited key new customers,
including GTE, and new product introductions
for the strong earnings showing.
Bert Hochfeld, computer networking
analyst at Josephthal & Co., said there were
no big surprises in Ascend's earnings statement
and that business in Asia will continue to be
slow.
Shares of Ascend (ASND) fell 15-16 to
39-1/2 at Thursday's close but before the
announcement. The stock changed little in
after-hours trading. |
