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

To: Jack Whitley who wrote (56400)	10/22/1998 11:45:00 PM
From: The Phoenix	Read Replies (4) \| Respond to of 61433

Jack, It was $8M - agreed. What was it last quarter? IS this $8M a significant increase over previous quarter financing? It was CLEC's - agreed...and probably smaller ones at that. Does this mean larger CLEC's are next? Perhaps ILEC's, certainly ISP's can't be far behind... Sorry, but I'm playing a bit of devil's advocate here. I think these are the assumptions going through these anaylsts minds. If the financing requirements are picking up what should the analysts expect next quarter, and what if these mounting financed deals start going belly up due to continued market weakness? I don't have the answers to these questions...only time will tell. Are there any accountants out there? I guess there are also questions about the accounting practices which I'm not reall able to comment on. Oh, one last thing that I think is worth pointing out...which I have stated in the past (shortly after the earnings announcement). How much of the .32/share was revenue realized this quarter from financed shipments in previous quarters? My take on all of this is that ASND is working to hard to manage the books and it's boomeranging on them. They should realize a quarters revenue related shipments in the quarter they are shipped, regardless of how the product is financed. It's all this bookmaking shenanigans that has MM's spooked. Remember, (especially in this market), analysts and MM's don't like uncertainty. Any confusion at all and they'll go somewhere else where they are more comfortable. SO, I agree with Mory, they may not understand ASND's business, but moreover, Mory and company don't understand the analysts and what makes them work. It's a double edged sword. OG