Ascend Communications, Inc. Announces Financial Results For The Second Quarter Ended June 30, 1996.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)--July 9, 1996-- Ascend Communications, Inc. (NASDAQ-ASND) today reported its financial results for the second quarter ended June June: see month. 30, 1996. Second 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 $123.3 million, a 332% increase over net sales of $28.6 million recorded in the second quarter of 1995. Net income for the second quarter of 1996 was $29.8 million or $0.24 per share, a 458% increase over net income of $5.3 million or $0.05 per share for the second quarter of 1995. Commenting on the financial results and other activities during the quarter, Mory Mory is the name or part of the name of three communes of France:
"In March, we completed the acquisition of Morning Star Technologies, Inc. and subsequently announced the first of a series of security capabilities which utilize Morning Star's technology and which are fully integrated into the Pipeline and MAX product families. We are particularly proud of the fact that we developed these new products and completed all of the various transition challenges associated with their introduction without losing any sales momentum or compromising our profit objectives. Also, late in the second quarter we enhanced our relationship with Lucent Technologies by signing a contract extension with their Network Systems group whereunder they will resell re·sell tr.v. re·sold , re·sell·ing, re·sells 1. To sell again. 2. To sell (a product or service) to the public or to an end user, especially as an authorized dealer. our Pipeline and MAX products as part of a totally integrated package of products for Internet service providers Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. throughout the world." Commenting on the composition of net sales during the quarter, Ejabat said, "International sales continued to grow at a rate greater than our total corporate growth rate, accounting for 44% of net sales in the second quarter. North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Internet service providers and Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the resellers contributed 22% of net sales, resellers and distributors accounted for 19% of net sales, carriers and equipment providers represented 14% of net sales, and direct sales contributed 1% of net sales." Ejabat continued, "Also, in late May we announced the acquisition of NetStar, Inc. We expect to complete all aspects of this acquisition in August. With the addition of NetStar's technology we are well-positioned to define the future platform of choice for central site access, switching and routing technology. Our objective is to combine our call access technology with NetStar's high-speed routing and switching technology to develop a single platform which will provide a totally integrated remote networking solution for corporations, Internet service providers and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. carriers. Additionally, in June we announced that Mr. Martin Schoffstall has agreed to join our Board of Directors. We consider ourselves very fortunate to attract an individual with Mr. Schoffstall's credentials CREDENTIALS, international law. The instruments which authorize and establish a public minister in his character with the state or prince to whom they are addressed. If the state or prince receive the minister, he can be received only in the quality attributed to him in his credentials. to our Board. Marty brings to Ascend the vision and experience he has gained as a pioneer in building the commercial Internet industry. Marty will be instrumental in helping us strengthen our lead in the markets we serve." This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties. Actual results may differ from the results discussed in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, risks associated with acquisitions, such as difficulties in the assimilation Assimilation The absorption of stock by the public from a new issue. Notes: Underwriters hope to sell all of a new issue to the public. See also: Issuer, Underwriting Assimilation of operations, technologies and products of the acquired companies, diversion A turning aside or altering of the natural course or route of a thing. The term is chiefly applied to the unauthorized change or alteration of a water course to the prejudice of a lower riparian, or to the unauthorized use of funds. of management's attention from other business concerns and risks of entering new markets. Ascend Communications, Inc. is a leading worldwide provider of remote networking solutions for corporate central sites, Internet Service Providers' points of presence, remote offices, mobile workers and telecommuters. Ascend develops, manufactures, markets, sells and supports products which utilize bandwidth on demand to extend existing backbone networks A backbone network provides a path for the exchange of information between different LANs or subnetworks.[1] A backbone can tie together diverse networks in the same building, in different buildings in a campus environment, or over wide areas. for applications such as 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, Internet access See how to access the Internet. , 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. , SOHO Soho (sōhō`, sə–), district of Westminster, London, England, known for its continental restaurants. Once a fashionable quarter, it became popular among writers and artists in the 19th cent. connectivity and videoconferencing/multimedia access. Detailed information on Ascend products, news announcements, seminars, service and support is available on Ascend's home page at the World Wide Web site http://www.ascend.com. -0-
ASCEND COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
UNAUDITED
(IN THOUSANDS, EXCEPT PER SHARE DATA)
QTR. Ended June 30, Six Mos. Ended June 30,
1996 1995 1996 1995
Net Sales $123,345 $ 28,581 $214,423 $ 48,944 Cost of Goods Sold 43,436 9,819 75,284 16,818 Gross Profit 79,909 18,762 139,139 32,126 Operating Expenses: Research and Development 8,064 1,915 13,559 3,805 Sales and Marketing 22,621 6,728 42,170 11,337 General and Administrative 3,669 1,865 6,625 3,548 Total Operating Expenses 34,354 10,508 62,354 18,690 Operating Income 45,555 8,254 76,785 13,436 Interest Income, Net 2,500 367 5,057 770 Income Before Income Taxes 48,055 8,621 81,842 14,206 Provision for Income Taxes 18,261 3,279 31,100 5,399 Net Income $29,794 $5,342 $50,742 $8,807 Net Income Per Share $0.24 $0.05 $0.41 $0.09 Number of Shares Used in Per Share Calculation 123,487 102,500 122,581 101,840
ASCEND COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(IN THOUSANDS)
June 30, Dec. 31,
1996 1995
ASSETS
Cash, Cash Equivalents and Short-Term Investments $232,135 $211,080 Accounts Receivable, Net 66,024 30,553 Inventories, Net 53,794 24,855 Other Current Assets 14,174 8,053 Total Current Assets 366,127 274,541 Investments 44,310 51,515 Furniture, Fixtures and Equipment, Net 18,012 8,931 Other Assets 2,488 463 TOTAL ASSETS $430,937 $335,450 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts Payable and Accrued Liabilities $51,097 $39,320 Total Current Liabilities 51,097 39,320 Stockholders' Equity: Common Stock 112 110 Additional Paid In Capital 298,869 265,509 Retained Earnings 80,859 30,511 Total Stockholders' Equity 379,840 296,130 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $430,937 $335,450-0- CONTACT: Ascend Communications, Inc. Chief Financial Officer 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 Ext. 2309 Director, Investor Relations Investor relations The process by which the corporation communicates with its investors. Paula Cook, 510/769-6001, X-2345 |
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