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

To: Father E. who wrote (49920)	7/14/1998 5:59:00 PM
From: Dennis R. Duke	Respond to of 61433

No, he sounded disappointed that Michael has held to the position that he has had on this issue from day one. Paul Johnson also hit this issue with the same result. As a shareholder I am happy that the CFO is building deferred revenue for those tough times. If the prior CFO had last fall would not have been as ugly. IMHO, Dennis

To: Father E. who wrote (49920)	7/14/1998 6:02:00 PM
From: Jeff Jordan	Read Replies (1) \| Respond to of 61433

there was some stuff going on with the deferred revenue. Another simple reason why sequential sales growth means nothing Well, I've seen ASND defer earnings before...and again if your reporting a true event...I consider it a good thing... I'm excited because Ascend is still on track......Still bullish Jeff

To: Father E. who wrote (49920)	7/14/1998 6:24:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 61433

I think there's a lot of confusion about deferred revenue. If you have a contract and have received payment on that contract, but have not yet delivered product you book the cash as an asset and offset it with a deferred revenue entry (a liability). It is essentially a window on the future. It is a much more conservative way of accounting than simply booking the money as revenues. I think you are correct in your criticism of the accounting standards and of analysts who don't (or can't) analyze. But I think you're off base in suggesting that ASND's earnings this quarter are either poor or disappointing. They look pretty solid to me. TTFN, CTC