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

To: Glenn D. Rudolph who wrote (26880)	12/7/1997 10:39:00 PM
From: Gary Korn	Respond to of 61433

See BOLD below: 12/3/97 Dow Jones Int'l News Serv. 16:34:00 Dow Jones International News Copyright (c) 1997, Dow Jones & Company, Inc. Wednesday, December 3, 1997 Networking Cos. -3: Analysts Still See Healthy Demand -- CS Stressing that the problems at 3Com and Cabletron are largely company- specific, a number of analysts said they do not see signs of weakening in the networking business overall. Many analysts stressed that business has begun to pick up in the second half of 1997 - after weak economic conditions in many international markets, pricing pressure, a high number of product transitions and a shift in information technology spending away from network upgrades hurt the sector in the first half - and they say they don't interpret the warnings from 3Com and Cabletron as signs of this pick-up's evanescence. Tobia of NationsBanc Montgomery said he believes demand for networking equipment is being driven by the transition to switched technology from shared technology, combined with the transition to 100-megabit technology from 10- megabit technology. Increasing remote access connectivity, the networking of small businesses and homes and demand for technology that allows network service providers to offer more flexible services are also fueling the business, he said. Tobia noted, however, that the networking business is 'suffering from the fact that Cisco is so big,' and that many networking companies are finding it tougher and tougher to compete with the industry giant. Cisco, he explained, has a big sales force and has been very effective at acquiring and developing competitive technology. This has prompted a number of networking companies - including Cabletron and Bay Networks - to bring in new management. It has also helped spark mergers, including the combination of 3Com and U.S. Robotics and the merger of Ascend Communications and Cascade. 'Cisco is forcing the consolidation of the second- and third-tier players,' Tobia said. (MORE) AP-DOW JONES NEWS 03-12-97 2134GMT ---- INDEX REFERENCES ---- NEWS SUBJECT: International News Wire; Domestic World Equities Report; World Equities Report (EWR WED WER) Word Count: 277 12/3/97 DJINS 16:34:00 END OF DOCUMENT