Tuesday January 19 6:29 PM ET
Ascend Operating Profit Meets Wall St. Estimates
ALAMEDA, Calif. (Reuters) - Computer networking company Ascend Communications Inc. (Nasdaq:ASND - news)on Tuesday said one-time charges led to a $197 million loss in the fourth quarter, but it posted operating profits on target with Wall Street expectations.
Alameda, Calif.-based Ascend, which last week agreed to be bought by Lucent Technologies Inc. (NYSE:LU - news)in an $18.5 billion deal, posted a net loss of $197 million, or 92 cents a share on a diluted basis, after a one-time charge of $267 million for the acquisition of Stratus Computer Inc.
That compared with a profit of $47.6 million, or 24 cents a share, in the fourth quarter of 1997, Ascend said.
Excluding charges, Ascend reported pro forma net income of $69.8 million, or 31 cents a share, matching the Wall Street consensus as
compiled by First Call.
Sales rose to $476 million from $292.5 million.
Last week Ascend agreed to be bought by Lucent in a deal that combines the fourth-biggest maker of computer network gear with the world's largest maker of telephone equipment gear.
Lucent wanted Ascend mainly for its technology, which allows the simultaneous transmission of voice, video and data. Networking gear
is used to link computers that manage huge banks of data and to build and maintain the Internet.
Ascend shares rose $3.25 to $89.44 on Nasdaq. The results were announced after the close of trading. Lucent shares finished $3.69
higher at $113.94 in trading on the New York Stock Exchange. |
