Ascend Communications Inc, which last week acquired Cascade Communications Corp in a deal valued at $3.7bn (CI No 3,130), reported solid results for the first quarter, while its newest possession didn’t fare as well. Remote access company Ascend’s net income for the quarter was up 81% at $35.1m, on revenue up 120% at $202.4m. Earnings per share increased 80% to $0.27. These figures include a one-time charge of $18m for the purchase of InterCon Systems Corp (CI No 3,092). Without the charge, earnings per share would have been $0.36, or three cents better than First Call estimates. Ascend cites strong demand for its MAX TNT product, which contributed revenue for the first time this quarter. Cascade, on the other hand, reported a net loss $198.3m, on revenue up 61% at $90.3m. The loss includes a one-time charge of $213.1m related to the purchase of Sahara Networks Inc (CI No 3,072). Without it, Cascade would have reported net income up 42% at $14.8m, or $0.15 per share. However, Wall Street wanted $0.19 per share out of the switching specialist. Cascade blames it shortfall mostly on uneven buying patterns and the deferral of revenue from its AX remote access products. รก
