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

To: jach who wrote (32003)	1/24/1998 1:00:00 AM
From: Gary Korn	Respond to of 61433

.......................ASND.......CSCO ======================================= gross margin ..... 64%...........65% R&D .............. 14% ......... 12% Sales and Mkt..... 24% ........ 18% Gen & Admin ..... 3% ........ 3% compared well except sales and mkt. Fron this it seems well run as gross 65, R&D 14 and admin 3 are quite good. Sales&Mkt just need to bring in more. Just for a test, assuming asnd get to 20% for sale&mkt, that will add about additional 12 mil operating income which translates to about 5c more in earning, and very likely will make it close to 40$; and if asnd can get to 18% sales and mkt and 12% R&D that will add another 5c which will then probably bring the stock up to 45-50$ range. jach, Very interesting and analytical post. Gary Korn

To: jach who wrote (32003)	1/24/1998 9:05:00 AM
From: Sector Investor	Read Replies (2) \| Respond to of 61433

<<Sales&Mkt just need to bring in more. Just for a test, assuming asnd get to 20% for sale&mkt, that will add about additional 12 mil operating income which translates to about 5c more in earning, and very likely will make it close to 40$; and if asnd can get to 18% sales and mkt and 12% R&D that will add another 5c which will then probably bring the stock up to 45-50$ range. >> Jach, we know they could have shown that extra $12M in revenue if they wanted to, but they kept it as backlog instead. They obviously are doing just fine, see link. Message 3238485

To: jach who wrote (32003)	1/25/1998 12:10:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 61433

compared well except sales and mkt. Fron this it seems well run as gross 65, R&D 14 and admin 3 are quite good. Sales&Mkt just need to bring in more. Just for a test, assuming asnd get to 20% for sale&mkt, that will add about additional 12 mil operating income which translates to about 5c more in earning, and very likely will make it close to 40$; and if asnd can get to 18% sales and mkt and 12% R&D that will add another 5c which will then probably bring the stock up to 45-50$ range. jach, You are correct! It may be that ASND is still trying to increase market share whereas CSCO is not focusing on that issue. Glenn