Ascend Communications Reports First Quarter 1998 Financial
Results
ALAMEDA, Calif.--(BUSINESS WIRE)--April 9, 1998--Ascend
Communications, Inc. (NASDAQ:ASND) today reported financial results for its
first quarter ended March 31, 1998. First quarter net sales were $305.1 million
and net income was $52.4 million ($0.26 per share on a diluted basis).
Compared to the fourth quarter of 1997, these results represent sequential
quarterly growth in net sales and net income of 4.3% and 10.1%, respectively.
Commenting on the Company's first quarter performance, Mory Ejabat, president
and chief executive officer of Ascend, said: "We are pleased with Ascend's first
quarter financial results, which showed sequential growth in both net sales and net
income. North America, in particular, showed strength driven by strong demand
for access ports. We also achieved key customer wins, with our most recent win
being a nationwide frame/ATM backbone network for GTE, a customer with
which we have had a long-standing relationship. Strong financial results and key
customer wins, combined with continued new-product introductions, including the
MAX 6000 and the Voice over IP products, made the first quarter a success."
Ejabat continued, "Reviewing our business units, Access Switching showed strong
growth driven by demand in North America and the strength of the MAX TNT as
the access platform of choice among the largest Network Service Providers. We
also saw a pickup in demand for our DSL products, with our CLEC customers
being the early adopters of this technology. Our strength with the large Network
Service Providers has allowed us to maintain market share leadership in access
concentration over the last five quarters, as measured by the Dell'Oro Group."
Commenting on Ascend's Core Systems business, Ejabat said: "We continue to
be pleased with our momentum selling backbone infrastructure to the large
Network Service Providers worldwide. Sales in both our European and
Asia-Pacific markets increased quarter-over-quarter. In addition, we saw frame
relay sales increase as more of our customers deploy backbone networks that
utilize a mix of our frame relay and ATM switching platforms."
Commenting on the outlook for the remainder of 1998, Ejabat said: "We continue
to see strong demand for capacity in the network backbone, with ATM clearly
emerging as the network architecture of choice. We also expect that growth from
the consumer segment, driven by both new subscribers and increasing connect
times, will drive demand for access ports. We believe that the market
opportunities are significant, that Ascend is well positioned within those markets,
and that our strategy is sound."
This press release contains certain forward-looking statements that are based on
current expectations and involve risks and uncertainties.
Actual results could differ materially from these expectations as a result of factors,
including the demand for, revenue from and acceptance of the Company's
products, the Company's success in developing, introducing or shipping new
products, the timing and acceptance of new product introductions, competition,
the mix of distribution channels employed, the Company's dependence on single
or limited source suppliers for certain components used in its products, risks
inherent in international sales, seasonality and general economic conditions.
In addition, revenue and earnings in the data networking equipment industry are
subject to fluctuation and the growth rates recently experienced by the Company
do not necessarily represent future operating results. Investors should not use any
one quarter's results as a benchmark for future growth.
For a more detailed description of the risk factors associated with the Company
and the data networking industry, please refer to the Company's Form 10-K,
10-Q and other filings made periodically with the Securities and Exchange
Commission. About Ascend Communications
Ascend Communications, Inc. develops, manufactures, and sells wide area
networking solutions for telecommunications carriers, Internet service providers,
and corporate customers worldwide. For more information about Ascend and its
products, please visit the Ascend web site at ascend.com, or e-mail
info@ascend.com. |
