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

To: Pat Hughes who wrote (58421)	1/5/1999 2:32:00 AM
From: Bindusagar Reddy	Read Replies (3) \| Respond to of 61433

Analysts See Computer Networkers Posting Solid Earnings in Quarter By JOELLE TESSLER Dow Jones Newswires NEW YORK -- The leading computer networking companies should report solid earnings gains for the fourth quarter, driven by strong demand for equipment used to build out the Internet and to set up corporate networks. Finally, Mr. Stix expects Ascend Communications Inc. to report earnings of 32 cents to 33 cents a share for the fourth quarter, up from 24 cents a year ago. The company, which is focused entirely on the carrier market, is benefiting from aggressive spending by phone companies and Internet service providers. Bernstein's Mr. Sagawa believes Ascend's ATM and frame relay switching business grew 25% sequentially in the fourth quarter, while its remote access equipment sales rose modestly after climbing 29% in the third quarter. THIS paragraph is interesting and is the biggest concern if you are CSCO. Their core market will be hit by pricing pressures in 1999. Pricing Pressure in Enterprise Market Mr. Sagawa added that pricing pressure in the enterprise market, which began in hubs two years ago and spread to low-end switches in 1997, has now hit modular and stackable switches. Lower prices could also contribute to deceleration in enterprise spending, the analyst believes, since "companies can get everything they need by spending less." But not everyone sees things this way. While SG Cowen's Mr. Stix agreed that enterprise spending on information technology could slow next year, he believes many companies are still investing in their computer networks. Very interesting. BR