View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
November 6, 1997updated 03 Sep 2016 7:37pm

ASCEND’S UP-BEAT SALES FORECAST A BID TO STOP SHARES SLIDING

By CBR Staff Writer

Californian wide area networking company, Ascend Communications Inc, has tried to arrest the accelerating decline in its share price in the wake of its disappointing third quarter’s results by issuing what it feels is an up-beat sales forecast. The shares have dropped $10 in the last 10 days of trading to a 52 week low of just $25 and Ascend has taken action to combat the industry rumors that it’s struggling to sell its switches. The company has admitted to experiencing uneven demand but blamed this on consolidation within its biggest market, the internet service providers. It now says that sales growth over the next six months will be between 5% and 10%. The reason for poor sales is due to problems shifting its remote access concentrators, and although it is slashing the prices by 20-30%, there is general reluctance to purchase equipment in the remote access market because of a lack of a single fast modem standard. Instead there is the marketing battle between the Rockwell/Lucent K56Flex standard that Ascend uses, and 3Com Corp’s x2. Ascend seems to be encountering the same problem that is afflicting its component supplier Rockwell International Corp (CI No 3,284), which has blamed a yearly drop in profits on low volume shipments of K56Flex.

Content from our partners
Powering AI’s potential: turning promise into reality
Unlocking growth through hybrid cloud: 5 key takeaways
How businesses can safeguard themselves on the cyber frontline

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU