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

To: Larry J. who wrote (29637)	1/7/1998 11:22:00 PM
From: Gary Korn	Read Replies (3) \| Respond to of 61433

Larry, I did tell Mory that I was a representative from the SI thread. I also gave him my card (attorney card). I neglected to remind him to tender his class action cases to his carrier. <VBG> After what I heard, I guess I would say that I would invest in the company, acquisition or no acquisition. By the way, I asked for and will receive the slide that Mory put up during his main presentation. Some things he said (he is starting to sound like a telco guy): a. Voice grade equipment has reached reliability of 2-3min downtime per each 10 years of use. It took them 70 years to do this. We need to do this -- reach the same reliability level -- with the data network within 5-10 years. b. ASND's strategy will be to develop technologies required and/or acquire companies required to provide access, concentration and switching needs for our customers. c. The new technology direction is voice/fax/data over internet (it is in trial at RBOCs now). ATM-Sonet integration. SS7 signaling. And network management. d. In ATM, ASND is gaining market share. ASND is seeing the benefit of increased sales force presence. e. Key organizational issues: - Product reliability. - Employee retention - Expense reduction - Price leadership - Improve organizational infrastructure. f. In Q397: Access was 50% revenue, switching was 36% revenue. This will cross in 1998. g. "We have a strong financial position at this point." h. There will be a new HQ in New Jersey for ASND's enterprise products division (I think this includes the new service division). [Korn: Why New Jersey, other than that is where LU is headquartered???] i. Revenue comes 45% from carriers, 31% from ISPs, 32% from resellers and the rest is direct sales. j. Q1, Q2 and Q3 earnings were 31, 31 and 20. Ejabat said "we are seeing some improvement in this area." k. North American sales were 71% in 3Q. Int'l sales were 29%. l. Ejabat said that "technically, we are 6 months to 1 year ahead of our competitors." Gary Korn.