Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Duke who wrote (1575)	10/20/1998 11:26:00 AM
From: Thomas M.	Read Replies (1) \| Respond to of 1629

Courtesy of Pat Mudge: <<<< A summary of the CC. All errors my own: I joined the Ascend conference call in time to catch the final comment on '99 guidance. "1999, leave alone --- $2.3 billion in revs, representing 70% growth; and $1.70 in EPS, at 40% growth. $490 M next quarter, and .36 EPS." Q&A: Q: Could you comment on SG&A charges in the quarter? A: 1) patent infringement charge of $5 million to Lucent, 2) write off in receivables of $7 million, and 3) write down on loans of $8.7 million. Q: Interoperability of Stratus products with other vendors? A: Some will cooperate and some won't. [No names provided.] Q: Chance Stratus products will exceed expectations? A: Yes. Q: Update on changes in GRF? A: Mid to late '99 will have replacement. Q: Pricing trends in ATM? A: Some discontent (?), but no downward trend. Very stable. Q: Charges on working capital loans? A: There are number of deals where CLECs want loans. We've started to do this, though [we're] limiting money available and looking for other sources. We'll write it down if we do it alone. Q: What are international prospects for core switching? How will you win in Europe and overseas markets? A: Major expansions internationally --- this is where new customers will come --- we are in several bids. Some we're working with resellers. Two are Lucent and Alcatel. Q: What caused delays with NTT? A: Software will be released at end of October. Will take product in November. Q: What percent of total sales are financed? A: 5% -- to CLECs. Q: Are these considered bad debts? A: No. We expect [revenues] to show up in later quarters. Q: When will revenue cut over from Stratus? A: We've had customers up for 2 months. PTT trial soon. Q: ATM competition? A: We're the only one to gain ATM market share this year. Expect this to continue. Q: Revenue recognition on equipment financing? A: We write down capital loans up front. No revenue recognition where loans have been given. Q: Is this [financing] necessary to remain competitive? A: Yes. G&A will be higher and we do have to do this to be competitive. Q: Wins in ATM --- Williams (?) --- what period of time? A: Will be 1 ½ years to build up. Q: Stratus, SS7 and access concentrators --- is this building confidence for '99? When will numbers take off? A: Some revenues have been factored in. If trials and carrier tests [make carriers comfortable] there'll be surprises. [We haven't been] aggressive in moving up guidance for switched network. Q: Comments on 500/550 upgrades? What about Cisco and NN in '99? A: In core switching we have 9000 at 1 gig, 500 at 5 gig; and 550 at 25 gig. Moving aggressively. All our customers know what we have. Cisco targeted at products we've been shipping for several quarters. Others are behind by a long shot --- [their products] are only good in enterprise and private networks. Q: If you factor out the NTT setback, what percentage of business was core switching? A: 10% sequentially. Q: Where is strongest growth, core or access? A: Guidance for Q4 shows confidence in core systems side. Principally in core, not access. Q: What is status of wireless and DWDM integration? A: No wireless in TNT or Max. We have DWDM interface with several providers --- Pirelli and Ciena. Will interface in the future. Q: What about next generation TNT? A: No comment. CC replay: 800-475-6701, access # 409566, from 4:00 p.m., PDT, to midnight Monday.