Ascend Communications, Inc. Announces Financial Results For The Third Quarter Ended September 30, 1995.ALAMEDA Alameda (ăləmē`də, –mā`də), city (1990 pop. 76,459), Alameda co., W central Calif., on an island just off the eastern shore of San Francisco Bay; settled 1850, inc. as a city 1884. , Calif.--(BUSINESS WIRE)--Oct. 12, 1995--Ascend Communications, Inc. (NASDAQ-ASND) today reported its financial results for the third quarter ended September September: see month. 30, 1995. Third quarter net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight were $40.0 million, up 289% over $10.3 million recorded in the third quarter of 1994. Net income for the third quarter was $7.1 million or $0.25 per share after the effect of a $0.07 per share charge resulting from the Company's purchase of technology from Dayna Communications, Inc. The growth in net income represents a 184% increase over net income of $2.5 million or $0.10 per share for the third quarter of 1994. Net income for the third quarter of 1994 was favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. affected by a lower provision for income taxes as a result of utilization of net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. . As previously reported, the Company declared a two-for-one stock split, payable in the form of a stock dividend, which was effective in October 1995. Adjusted for the stock split, net income per share for the quarter ended September 30, 1995 would be $0.13 as compared to $0.05 per share for the same quarter of 1994. Commenting on these results, Mory Ejabat, president and chief executive officer of Ascend, said, "We are pleased to bring you this positive report on our third quarter financial results. We enjoyed strong business activity across all distribution channels, led by our reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. and distributor channel, which accounted for 33% of our revenues in the third quarter, and our Internet channel The Internet Channel is a version of the Opera 9 web browser for use on the Wii by Opera Software and Nintendo.[1] On December 22, 2006, a free beta version (promoted as a "trial version") of the browser was released. , which contributed 26% of revenues. Other market channels also performed well, with contributions by the international channel increasing to 26% of revenues for the quarter, followed by carriers and equipment providers at 13%, and the direct channel at 2%, respectively. Other significant activities in the quarter included the successful completion of a public offering of 3,162,500 shares of common stock, at a price of $70.50 per share. All of the shares were sold by the Company. Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. & Company Inc., Robertson Stephens &
Company and Wessels, Arnold and Henderson co-managed the offering."
Commenting on further significant activities during the quarter, Mr. Ejabat said, "We are particularly pleased to have successfully completed the acquisition of the DaynaLINK products and related technology from Dayna Communications, Inc. on September 1, 1995. This acquisition enabled us to expand and enhance our MAX family by providing a cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. solution for customers who require dial-up network (1) The switched telephone network regulated by government and administered by common carriers. Also called "plain old telephone system" (POTS) and "public switched telephone network" (PSTN). (2) A network that can be accessed remotely via analog modems or ISDN. connectivity for their small and remote offices. In late September we announced our MAX 200 product, the first product to utilize portions of the technology acquired from Dayna." Ascend Communications, Inc. develops, manufactures, markets, sells and supports a broad range of high-speed digital wide area network access products. These products use bandwidth on demand for applications such as Internet access See how to access the Internet. , remote LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. access, telecommuting telecommuting, an arrangement by which people work at home using a computer and telephone, transmitting work material to a business office by means of a modem and telephone lines; it is also known as telework. , videoconferencing A real time video session between two or more users or between two or more locations. Although the first videoconferencing was done with traditional analog TV and satellites, inhouse room systems became popular in the early 1980s after Compression Labs pioneered digitized video systems access, imaging, and integrated voice, video and data access. Ascend products also use bandwidth on demand to provide automatic emergency backup and peak-period overflow bandwidth for leased lines A private communications channel leased from a common carrier. Most digital lines require four wires (two pairs) for full-duplex transmission. (communications, networking) leased line , frame relay A high-speed packet switching protocol used in wide area networks (WANs). Providing a granular service of up to DS3 speed (45 Mbps), it has become popular for LAN to LAN connections across remote distances, and services are offered by most major carriers. circuits and ATM circuits. -0-
ASCEND COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
UNAUDITED
(IN THOUSANDS, EXCEPT PER SHARE DATA)
QTR. ENDED NINE MONTHS ENDED
SEPT. 30, SEPT. 30,
1995 1994 1995 1994
Net Sales $40,036 $10,289 $88,980 $25,341 Cost of Goods Sold 13,780 3,410 30,598 8,537 Gross Profit 26,256 6,879 58,382 16,804 Operating Expenses: Research and Development 2,323 1,052 6,128 2,320 Sales and Marketing 9,354 2,677 20,691 6,920 General and Administrative 2,256 692 5,804 1,888 Purchased R&D 3,032 - 3,032 - Total Operating Expenses 16,965 4,421 35,655 11,128 Operating Income 9,291 2,458 22,727 5,676 Interest Income, Net 2,136 384 2,906 514 Income Before Income Taxes 11,427 2,842 25,633 6,190 Provision for Income Taxes 4,346 350 9,745 606 Net Income $7,081 $2,492 $15,888 $5,584 Net Income Per Share (1) $0.25 $0.10 $0.60 $0.25 Number of Shares Used in Per Share Calculation (1) 28,152 24,790 26,357 22,618 (1) Per share and share data does not include the effect of the 2-for-1 stock split which was distributed in the form of a stock dividend in October 1995.
ASCEND COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(IN THOUSANDS)
SEPT. 30, DEC. 31,
1995 1994
ASSETS
Cash, Cash Equivalents and Short-Term Investments $208,604 $35,548 Accounts Receivable, Net 23,615 7,786 Inventories, Net 13,192 5,256 Other Current Assets 2,276 2,276 Total Current Assets 247,687 50,866 Investments 41,360 Furniture, Fixtures and Equipment, Net 7,257 2,140 Other Assets 442 266 TOTAL ASSETS $296,746 $53,272 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts Payable and Accrued Liabilities $18,631 $9,617 Total Current Liabilities 18,631 9,617 Stockholders' Equity: Common Stock 27 24 Additional Paid In Capital 262,263 43,693 Retained Earnings (Deficit) 15,825 (62) Total Stockholders' Equity 278,115 43,655 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $296,746 $53,272 CONTACT: Ascend Communications, Inc. Robert K. Dahl dahl n. 1. See pigeon pea. 2. or dal A thick creamy East Indian stew made with lentils or other legumes, onions, and various spices. , (510) 769-6001, X-2309 Paula Cook, (510) 769-6001, X-2345 |
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