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

To: The Phoenix who wrote (47682)	5/28/1998 3:24:00 PM
From: gbh	Respond to of 61433

True ASND purchased a good company in Cascade and they have done well with it. Agree. but this was out of neccessity not out of strategy. Disagree, but this is irrelevant. They had to make do with what they have and the RAS market wasn't cutting it for them. They saw RAS was not going to provide the growth levels going forward as they had seen in the past, so they decided to broaden their product line with focus on the WAN, with their purchases. How is this any different than CSCO's fanning out from the router business? However, the one thing CSCO did want to do was to take it to ASND, that's why they focused on the RAS market - that was ASND's bread and butter. This business is still growing and they are still one of two dominant players, of which CSCO is not. CSCO apparently isn't done with ASND and so now they are pumping funds and efforts into the STRM division. They are trying to put the squeeze on ASND. I think this is indeed something to worry about. Agree. I would hope ASND management worries about CSCO, and all their competitors. But CSCO is currently non-competitive in high end ATM switching, and the Wildcat (1q/99) product, from I can gather through the press release, will not leapfrog, but only match ASND in performance (actually a little less). Do you think carriers will really wait for this? just one bad quarter and we're in the low 30's again. This is absolutely true. And its why management is playing a much more conservative game now. BTW, where do you think CSCO will be if they have a bad quarter? Gary