CSCC is a prime takeover candidate
By Viro Valian,
Editor In Chief, Software
Stock Advisory Service
The company is a leading provider of high performance,
multi-service wide area network (WAN) switches that
enable cost-effective, high-speed, enhanced data
communications services. Cascade makes computers
called switches that provide high speed, multi-protocol
communications connectivity from a single platform,
eliminating the need for multiple individual data
networks. These switches operate over WANs and can
move data at hundreds of times the speed of local-area
networks. Cascade's target market is the burgeoning
frame relay and asynchronous transfer mode (ATM)
communication services industry. It is estimated that
these markets may well grow at an annual rate of over 55
percent, from $4.5 billion currently to $27 billion by the
year 2000.
Cascade is seeing explosive growth from the Internet and
counts as customers three of the largest Internet service
providers. In addition, Cascade also sells to 14 of the
world's 21 largest telecommunications provides. Surging
Internet subscriber growth is good news for Cascade,
which designs products that route enormous quantities of
data at speeds that are measured in millions of bits per
second. Burgeoning Internet usage and growing corporate
networks are overwhelming the public telephone network
that was designed for short voice calls.
Cascade had been in merger talks about two years ago.
But, talks were terminated without a merger agreement.
Cascade did not disclose the identity of the other party.
But people familiar with the situation said that Cascade
was negotiating its sale to Cisco Systems. At that point,
Cascade said it is still willing to discuss strategic
alliances or combinations with other companies in the
future, including the concern with which it ended the
merger talks.
Cascade competes with Ascend Communications, Cisco
Systems, Bay Networks, and Ipsilon Networks. Cascade
is the market-share leader in all of its business
segments and has very strong, ongoing carrier
relationships. |
