NET MONEY|Network Products Maker Ascend Communications Sees a Rebound ‘By Arik Wesseldaht ‘rena TunotrvoUs 197, during ‘whichit was beset by technical problems and the dificult inte- eration of a company it acquired, 1008 is looking better for Ascend ‘Communications Inc. Following its announcement last ‘month that it would beat analysts) ‘earnings estimates by one cent on the strength of trong North Amer- ican sales, the networking products ‘manufacturer has re- leader in the development of ‘frame relay, asynchronous trans- fer mode (ATM), and IP switching products, sent the stock into a Steady decline from a January 1907 high inthe 870s to the $20 range by the end ofthe year. The stock closed at $44.81 on May 13 “They ended up missing the Sep- ‘tember quarter badly and the stock really took a beating" Tuncer said. "But they had a decent December ‘quarter asthe Cascade business be- ganto take off” For 107, Ascend did $1.1 billion insales, up 31 percent from $890.3 rillion in 1996. And in the frst ‘quarter of 198, sales rebounded to $305 million, while expected pric- Ing pressures the company had ‘ited at earlier id not materialize. ‘These include how it intends to compete with new entries from (isco Systems, 3Com, and Bay Net- ‘works n the remote access market, ‘and from Newbridge and Lucent ‘Technologies inthe frame relay and Ascend isalso widely rumored to ones shipping a DS interface that be ripe fora takeover Many of its iscrtcal to many of our customers. competitors have formed. cross- Companies like Cisco and 9Com marketing and research alliances may have more brand recogition, ‘with eachother, but Ascend seems buttodate weve been able to main- ‘content to go it alone, Tuncer said. tain an avantage in_ products,” Bemie Schneider, Ascend’s vice Schneider said president and treasurer, said com- Cisco and 3Com are both far panies tend to enter Into such tanger than Ascend. Cisco had rev- Agreements to fll gaps in their enue of $6 billion for its 197 fis. product line, something that he cal year, which ended July 26, and ‘tid does not apply to Ascend. 3Com reported 1997 revenue of ‘$5.6 billion. lov. 2868 (ow: $4.81 (Dee. 2 and Dec, 29, 1987 May 13, 1998 eat ee And despite in sering tohow well Ascend thas integrated Cas- ‘eae, “Schnesier ‘said the troubles ‘associated withthe ‘deal are over. “Many compa- reasnorounneer nies, when = aes Seana? .o “We have not found ourselves ining the digestion pains 12 t0 24 the position of being behind inthe months afterward. We closed that rmarket,” Schneider sad eal late last summer, and most of Addressing the increased compe our customers say they fel that its tition in ts target markets, Schnel fully behind us. Every acquisition dersaid Ascends product sillhave —bringsbumpsin the road. The key is ‘8 good advantage over those from _ to getit done quickly” he sid. ‘Cisco and others. “We are the only ward: T0HS Mecklermedia’s WEBSITE VALUE INDEX NG THE ALE OF TET fu RLSM PP famtecos ‘aru Pris rtuat nat Yel 2s usm sm _ 8K Hevcgecon 711 STB SSB TY Mo 87S SRB SLB bate a2 SMB STB Nireof.con 188 “$1982.08 $106.29 +81% oee-WOS 16.2 S0GUM_——SBCOM 86165 +8. (yoerrged 150 S00 SLB SLA WStoon/inal 9 ———STOM “SEB _——852.66 238 i