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

To: Sector Investor who wrote (33968)	2/8/1998 10:37:00 PM
From: Marcel	Respond to of 61433

Shiva -2-: Nortel Pact Seen By End Of February Dow Jones Newswires -- February 5, 1998 By ANTHONY PALAZZO Dow Jones Newswires PASADENA, Calif. -- Shiva Corp. (SHVA) stock rose 16% on speculation that it will soon announce a new contract with Northern Telecom Ltd. (NT) to replace one that expired at the end of 1997. On a conference call following Shiva's fourth quarter results on Jan. 28, Shiva officials said they expect to announce the final contract before the end of the first quarter, said Christin Armacost, an analyst with Everen Securities. "I think people are expecting it sooner rather than later in the March quarter," Armacost said. "It would be reasonable to assume that the company will be able to report (the contract) before the end of February," she said. With the fourth quarter - in which Shiva reported a better-than-expected operating loss of 2 cents a share - behind it, and renewed strength in the networking sector, investors are now beginning to look ahead into 1998, Armacost said. As a reseller of Shiva's remote-access concentrators, Nortel provided the Bedford, Mass., networking company with nearly 20% of its 1997 revenue, Armacost said. The uncertainty of the structure of the relationship with Nortel has been an "overhang" on Shiva's stock for several months. However, the companies together have developed a high-capacity remote-access product, the Vantage Path Access Concentrator, that will be competitive with offerings from Cisco Systems Inc. (CSCO), 3Com Corp. (COMS) and Ascend Communications Inc. (ASND), Armacost said. Shipment is expected by the end of the June quarter. "There is the possibility that since the companies are closer the contract could be more favorable in terms of revenue opportunities for Shiva," Armacost said. Shiva shares rose 1 9/16, or 16%, to close at 11 3/8 on Thursday. - By Anthony Palazzo;