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

To: Bindusagar Reddy who wrote (56703)	11/4/1998 10:48:00 PM
From: Bindusagar Reddy	Respond to of 61433

CSCO conf. call, topic of vendor financing. They did 300 million financing in last two years, by CISCO CAPITAL CORP(like GMAC). 1. 80% were Purchase leases. Revenue recognized upon shipment. 2. 20% were operating leases. Revenue recognized during the life of the lease. They did not do any working capital loans, but would consider. So, this vendor financing is not new, they never told this until asked by Joe Bellace from Merril Lynch. They are definitely more aggressive in revenue recognition than ASND. In otherwords ASND was very conservative in revenue recognition policy with vendor financing. Hopefully this will help clear some analysts doubts, especially MR.Stupidopoulous. BR