To: IncredibleHult who wrote (30690 ) 1/16/1998 9:15:00 AM From: Gary Korn Read Replies (3) | Respond to
We fully expect the results to be at the high-end of expectations ... We believe that the results will show an improvement in the quality of earnings in the quarter, both in terms of accounts receivables and inventories. We also expect the company to report that visibility on demand has improved greatly. An acceleration in demand for the company's core switching products_primarily the CBX500 and recently introduced GX550 ATM products from Cascade. Recent discussions with carrier customers have indicated that demand for core ATM products is beginning to accelerate and that the GX550 is potentially a "killer product." A more stable business environment-in terms of pricing and unit demand_for Ascend's traditional businesses, both remote access (MAX TNT) and frame switching (STDX 8000/9000). These two product areas were the primary cause of the financial shortfall in the September quarter. Despite continued competitive pressures in these markets, we are now forecasting a slowing in the price erosion in the market. These business are not completely out of the woods, but the environment now appears to be more stable.
