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Technology Stocks : Ascend Communications-News Only!!! (ASND) -- Ignore unavailable to you. Want to Upgrade?


To: Finder who wrote (444)11/3/1997 1:39:00 PM
From: Maverick  Respond to of 1629
 
Diamond to double phone Internet speeds (w/ Ascend)

By Samuel Perry

PALO ALTO, Calif., Nov 2 (Reuters) - Diamond Multimedia Systems plans to unveil on
Monday a proprietary technology it says can double the speed of current analog Internet links
by using two standard phone lines at once.

That capability, which Diamond dubs Shotgun, provides speeds up to the 112 kilobits per
second (Kbps) speeds -- double the 56 Kbps speeds of the fastest analog modems that have
only begun to be widely available this year.

A modem is the device used to connect stand-alone computers to telephone lines so they can
communicate with the worldwide computer network known as the Internet.

Diamond boasts second place in sales of computer modems behind US Robotics, which was
acquired earlier this year by networking company 3Com Corp (COMS).

Such speeds for residential Internet connections have previously been available only through
costly and hard-to-obtain ISDN (Integrated Services Digital Network) lines or through very
limited cable modem deployments.

The technology, which is built into Diamond software and can run on its own existing
SupraExpress 56K modems, will be on view at this month's Comdex trade show in Las
Vegas, Nevada, but not in products until early next year.

The company and analysts declined to discuss pricing, but industry executives said they
expect the capability to be sold in modems for under $200 and in upgrade kits for significantly
less than that for SupraExpress 56K owners.

One of the key features of the technology is that it only uses the second telephone line during
peak usage, and it allows incoming and outgoing telephone calls on the second line while
maintaining the first line connection.


Diamond said that according to International Data Corp, the market research firm, one in four
of the 100 million U.S. households already have multiple telephone lines, a figure due to reach
30 million in three years.


Diamond, which uses Rockwell International's (ROK) K56flex 56Kbps modem technology,
said it developed the technology in partnership with Ascend Communications (ASND), lining
the two up against 3Com's rival x2 56Kbps technology pioneered by US Robotics.

The industry is now trying to hammer out a standard for 56 Kbps modems, and analysts said
Diamond was jumping the gun in a similar way on an industry effort to develop a standard for
line ''bonding'' technology like Shotgun.

For instance, a potentially confusing issue for customers interested in using the Shotgun
technology is that users need to be connected with an Internet service provider who uses
Ascend equipment, analysts said.

''I think Shotgun is very elegant in that it allows a second line and lets a person pick up a
second line (to talk on the phone) so you do not disrupt your phone line or Internet service,
''
said Walter Miao, an analyst at Access Media International in New York.

''As much as they may have the elegant solution, you've got to make something that's going



To: Finder who wrote (444)11/3/1997 4:04:00 PM
From: Maverick  Respond to of 1629
 
Ascend sees price cuts, slowing growth

SAN DIEGO, Nov 3 (Reuters) - Ascend Communications Inc said on Monday it expects
several quarters of unpredictable growth because of price reductions, consolidation among
Internet service providers and slower international demand.

Ascend, a maker of telecommunication gear for Internet service providers and online services,
also said it expects revenue growth of about 10 percent sequentially from quarter to quarter for
the next few quarters.

''We feel good about our long-term prospects, but we're going to see several quarters where
growth will be 10 percent quarter or quarter, a little more or little less,'' Bernie Schneider,
Ascend treasurer, told investors at the American Electronics Association conference in San
Diego.

Schneider said Ascend likely will have to reduce the list price of its access concentrators --
telecommunication devices for online services that accept calls from customers' modems --
between 20 to 30 percent in the first half of 1998, amid more competition from rivals such as
Cisco Systems Inc (CSCO), 3Com Corp (COMS) and Bay Networks Inc (BAY).

He also said the wave of acquisitions of Internet service providers by phone companies is
making demand less predictable domestically.

''I see the company saying that their long-term prospects are good, and their short-term
prospects are unpredictable,'' said William Rabin, analyst at JP Morgan who attended the
Ascend presentation.

In the third quarter, Ascend reported revenue and earnings that were well below what Wall
Street was expecting. Ascend had particularly slow sales in July, the first month of that
quarter.

Schneider said Ascend is ''off to a better start this quarter than last.''