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

To: Bald Eagle who wrote (20963)	11/4/1997 9:41:00 AM
From: Sector Investor	Read Replies (1) \| Respond to of 61433

UBS says: NOTES FROM AEA CONFERENCE IN SAN DIEGO They said that while Ascend commented that the contribution of the first month of Q4 was a greater percentage relative to the overall quarterly target than the Q3's first month, the company remained cautious. They said that ASND cited price pressure on remote access products, the need to complete the rollout of the TNT into Europe, weakness in the Japanese economy and delays in getting GRF approved in ISP accounts as the main issues facing the company in the Q4. They comment that within the RAS market, ASND is expecting pricing to fall to the $200-$250 per port range from the $250-$300 per port range seen recently. Also, ASND says that ISP consolidation is causing some decrease in aggregate demand for RAS ports. They say that ASND believes that international revenues will be flat over 3Q97 with the US market driving the sequential growth. ASND continues to see good demand from leading US customers such as UUNET and GTE. They indicate that major carrier consolidation in the US (e.g. the MCI, GTE and WorldCom situation), however, could cause temporary buying pauses in 1998, but is difficult to forecast. ASND syas on the core switch side, it believes it is gaining momentum on the ATM side with the recent introduction of the 550 switch and enhancements to the existing 500 switch. UBS believes Ascend has emerged as a supplier to AT&T Worldnet for ATM products as well as being used by AT&T for ATM for a native ATM service. They say that ASND also recently won a new RBOC in the US for ATM products. ASND is putting a larger focus on CLECS in the US and in Europe for expanding its core switching business. It also indicated that it won a major European PTT contract for 50 units of its GRF product for a network that will be based on Ascend GRF systems only and will not utilize routers from other vendors.