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

To: Matt Webster who wrote (36126)	2/24/1998 10:57:00 AM
From: Dennis R. Duke	Read Replies (1) \| Respond to of 61433

Might I point out that ASND had lower by 6% of sales within the Q4 of Access Concentrators, which was offset by a 6% increase in Core Switching. I.E., CSCC equipment is filling the void left by price competition in the RAC/RAS space. The significant item here is that ASND is still growing in ports, and frankly, I think Mory's brilliant for seeing the industry pricing pressures and buying CSCC when he did to offset the decline in total revenues from the RAC/RAS area. Particularly, when you learn that there was no formal budgeting or forecasting program in ASND other than quarterly forecasts of sales! That makes Mory (or whomever thought of CSCC) the forward thinker of the company. Further, that port ownership, if you will, should have great benefits as ASND continues to bring out better products to replace a large installed base. And usually newer higher technology products beget better margins, and have less price pressures. Huh, could it that be why ASND has spent as much as it has on R&D? Could it be that Maverick has already told us what is coming in future products that can demand higher margins as they prove to be better product? That installed base is the key to the future. It is underpriced due to competition. Does a sub $1,000 computer kill CPQ, or help it grow as units expand? Just IMHO, Dennis