Herb Greenberg, SF Chronicle "FULL DISCLOSURE
This may really be nothing more than boilerplate, but it's one of those disclosures that
warrants attention. In its just-filed 10-Q quarterly report, Alameda-based Ascend
Communications warns investors that its two newest and most promising computer
networking products, including a product that provides a crucial link between users and
the Internet, ``may contain undetected or unresolved hardware problems or software
errors when they are first introduced, or as new versions are released.'`
The company goes on to say there can be no assurances that bugs won't result in ``delays
in, or a loss of market acceptances,'' subsequently impacting the company's financial
condition.
In other words, suggests one shortseller, as the company gets more competition, and as its
customers get more choices, there's a chance they could choose something other than
Ascend's product.
For whatever reason, this type of disclosure has not appeared in recent Ascend 10-Qs.
Company officials couldn't be reached for comment." |
