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

To: The Phoenix who wrote (51657)	8/5/1998 9:46:00 AM
From: Kent Rattey	Respond to of 61433

Gary, <We should all be giving CSCO a pat on the back for a great quarter...hopefully holding up the sector today and looking forward to the battle at hand.> I love that stock and look forward to my new shares! If CSCO fell on its rear, we would be in deep do-do here. We need their earnings as much as we need ASND's. Kent

To: The Phoenix who wrote (51657)	8/5/1998 12:56:00 PM
From: mrclinton	Read Replies (1) \| Respond to of 61433

Of course Immi is gonna get blasted for this purely though as a result of the inaccuracy of this statement. For Cisco to ship large port densities they've got to find the holy grail of supplying UUNet and PSI. As long as these guys carry on buying Ascend at the phenomenal rates they do, they'll be number 2. This is the way the Companies justify their position in the RAC market. I'll list them in precedence of number of ports they ship. 1. Ascend does it on ports shipped, largest installed base, shipping and more importantly working solution for channelized T3. All other claims of this capability largely vaporware. God knows what kind of capacity the next generation platform will do. 2. Cisco does it on the number of boxes shipped (lower density) 5800 is still not shipping in large numbers. If you look at some of their user group forums they still can't do V.90 properly. 3Com and Ascend are shipping this now. 3. 3Com does it on revenue. Now these guys had an opportunity and missed it. They're being severely punished as a result. Big margins to be had in this product area compared to NICS and Sportsters. John C publicly stated they were going to be number one by the end of '98. One month into the second half, I think he's clutching at straws to convince people that they're on track to achieve this. I wouldn't be surprised if his comments on margins relate to the fact that he'll drop his pants on price to achieve this. I'm constantly reminded on SI that Cisco have the largest installed base of routers and are impossible to displace as #1 in that market and I entirely agree and salute them for their efforts. But Mory has said they have shipped over 10,000 TNTs worldwide and over 50,000 MAXes to date, surely by the same reasoning that assures their position. Or is there one rule for Cisco and one rule for Ascend?