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 (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: The Phoenix who wrote (56269)	10/20/1998 8:46:00 PM
From: Killian	Respond to of 61433

Gary, If I may! Isn't as simple if they loan money they debit their revenues. If they receive money, they credit their revenues? Both ASND and LU said that this is an accepted competitive tool. Thanks, Kevin

To: The Phoenix who wrote (56269)	10/20/1998 9:17:00 PM
From: Bindusagar Reddy	Respond to of 61433

Gary and others, this Financing thing is overblown. 8 million dollars in 370 million Q revenue is only under 2.5% Of revenues. There are very few (5)small privately held CLECs that are doing this. Majority of their revenues are quality revenues from the GIANTS like WCOM, ATT,NTT,QWST,WMB, DT and major ISPs like PSINET, EARTHLINK. For that matter any business in this country you take they will do some financing themselves. ASND happens to reveal it and take upfront expense rather than hide these from shareholders. I am extremely pleased with their strategy. Wait a few months Venture capital will start flowing to these small upcoming STARS of future communications. They will have plenty of cash to spend. All the major Networkers will be going GANGBUSTERS in 1999. Good luck, BR

To: The Phoenix who wrote (56269)	10/20/1998 9:43:00 PM
From: gbh	Read Replies (3) \| Respond to of 61433

OG, the point was made that these are small CLEC's that are getting these loans. Hardly a dent in the $370M quarter total. Also, until we see one of these loans actually turn into bad debt, we should give ASND the benefit of the doubt in regards to this business practice. Of course, Wall Street doesn't, and I'm not sure they should. Their job (especially in this market) is to be cautious. I think the downgrades today were less related to this loan business, and more related to genuine skepticism about future Q's, and being able to achieve next years targets. This company is not that different than XYLN right now. Apparently, growing at a rate better then the industry, and delivering consistent earnings, but getting little respect. Lets face it. No networker gets the respect of CSCO. Gary

To: The Phoenix who wrote (56269)	10/21/1998 12:57:00 AM
From: Pat Hughes	Read Replies (2) \| Respond to of 61433

Gary, I think the build out of the Next Generation Network may have come a bit too soon for many of these CLECs. But the amount of theses loans is inconsequential. Mory should have just made a big Bonfire outside headquarters and burned 8,700,000 in cold hard cash. Maybe Jim Cramer and those downgrading analysts would have understood that. Ascend would still have 991,300,000.00 left. Its just not a big deal to me. In my business it would be like letting a good customer run a tab - NO BIGGIE! Good Luck, Still Long Pat Hughes