INTERVIEW-Ascend says Asia sales stable
SINGAPORE, Oct 28 (Reuters) - U.S. networking equipment maker Ascend Communications Corp <ASND.O> said on Wednesday Asia's contribution to its global revenues in 1999 was expected to stay firm at about 10 percent.
"Our overall revenues continue to grow. That level of contribution from Asia Pacific remains pretty steady. It is in the region of 10 percent (for 1999)," Ascend's Asia Pacific Marketing Director Joe Roissier told Reuters in an interview.
The Alameda, California-based company forecast global revenues of US$2.3 billion in 1999.
Roissier said revenues from Asia had not dipped despite drops in sales in South Korea, Thailand, Malaysia and especially Indonesia.
"Business in Indonesia has been pretty flat. But we still see a little bit of business coming from Thailand," Roissier said.
South Korea would re-emerge as a strong revenue contributor when its financial health recovered, he said.
"We focused on China, we focused on Australia, the big countries first. We didn't get as well established in the other countries that are having problems," he said.
"So we are building from a small base anyway in those areas."
Ascend, established in 1989, started operations in Asia about four years ago.
"China, Hong Kong, Singapore, Taiwan and Australia, those are the five strongest markets now that contribute most to what we do in Asia," he said. "We're in good shape today in Asia."
Roissier said Ascend was helping to "ease the burden" of its customers in crisis-hit countries by financing their sales.
"But typically we realise the sale upon shipment so that should not affect our revenues," he said.
The firm was exploring the possibility of setting up manufacturing plants in Asia, he said without giving further details.
He said Ascend was the market leader in remote access concentration in Asia with a market share of 58 percent. In Asia's asynchronous transfer mode (ATM) frame relay market, the firm has about a 30 percent share of the pie, he said.
Roissier said Ascend would concentrate on the telecommunications industry in providing wide area networking switching to the Internet service providers in Asia.
Andrea Tan (65) 8703081; fax 7768112
Email: singapore.newsroom@reuters.com
05:15 10-28-98
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