Ascend Communications, Inc. announces financial results for first quarter and two-for-one stock split.ALAMEDA, Calif.--(BUSINESS WIRE)--April 18, 1995--Ascend Communications, Inc. (NASDAQ-ASND) today reported its financial results for the first quarter ended March 31, 1995. For the 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 $20.4 million and net income was $3.5 million ($0.27 per share). Compared with financial results for the quarter ended March 31, 1994, sales increased 200% from $6.8 million and net income increased 169% from $1.3 million ($.13 per share). Net income for each of the periods in 1994 was favorably affected by lower provisions for income taxes as a result of the utilization of net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. and research and development credit carryforwards. The company also announced that its Board of Directors has approved a two-for-one stock split, payable in the form of a stock dividend. The record date for the stock split will be Monday, May 1, 1995 and stockholders of record will receive one additional share for every share held. The transfer agent is expected to mail the new stock certificates representing the additional shares on Thursday, May 11, 1995. Upon completion of the split approximately 24,000,000 common shares will be outstanding. Commenting on significant activities during the quarter, Robert J. Ryan, chairman and chief executive officer of Ascend, said, "The first quarter of 1995 was an exciting one for Ascend. We again exceeded our financial objectives, and we were also successful in forming key strategic alliances with companies such as Microsoft, UUNET (UUNET Technologies, Inc., Fairfax, VA, www.uunet.net) Founded in 1987, UUNET was the first commercial Internet service provider. Originally offering e-mail and news, it became a full Internet service organization providing dial-up and leased line accounts as well as archive space for and GTE GTE General Telephone & Electronics GTE Génie Thermique et Énergie (French) GTE Gas Turbine Engine GTE Global Tropospheric Experiment GTE Geothermal Energy GTE Gas Turbine Efficiency plc (Sweden & USA) . Additionally, we expanded our product functionality by adding 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. support to our MAX and Pipeline product families and introducing the new MAX 4000 wide area network (WAN) access switch." In January 1995, Ascend announced that UUNET Technologies signed a contract to install the Ascend MAX in all of UUNET's Points-of-Presence (POPs) over the next two years. The MAX is playing a key role in UUNET's plans to increase its number of POPs throughout the country. UUNET is expanding its network to support its own growth and in conjunction with its support of Microsoft Online. Ascend introduced its new Pipeline EtherFrame products in February. The Pipeline EtherFrame products include a low-cost frame relay access router See edge router and remote access router. as well as EtherFrame software for the MAX WAN access switch, which allows the MAX to support frame relay along with analog, ISDN ISDN in full Integrated Services Digital Network Digital telecommunications network that operates over standard copper telephone wires or other media. , switched 56 and leased line 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 traffic in one central site access switch. The company also announced in February that their MAX WAN access switch will be integrated with the Microsoft Windows See Windows. (operating system) Microsoft Windows - Microsoft's proprietary window system and user interface software released in 1985 to run on top of MS-DOS. Widely criticised for being too slow (hence "Windoze", "Microsloth Windows") on the machines available then. NT server to provide telecommuters and remote office clients with analog and digital dial-up access hot Dial-up access is a form of Internet access via telephone line. The client uses a modem connected to a computer and a telephone line to dial into an Internet service provider's (ISP) node to establish a modem-to-modem link, which is then routed to the Internet. to enterprise applications running on Microsoft Windows NT servers. The solution is based on communications server See network access server, modem server, terminal server and communications controller. (operating system) Communications Server - IBM's rebranding of ACF. software, currently under development, that tightly couples Windows NT (Windows New Technology) A 32-bit operating system from Microsoft for Intel x86 CPUs. NT is the core technology in Windows 2000 and Windows XP (see Windows). Available in separate client and server versions, it includes built-in networking and preemptive multitasking. and the MAX. Ascend signed a contract with GTE Telephone Operations in April whereby GTE would resell Ascend's complete line of MAX and Pipeline products, making GTE the first major carrier to offer its customers an integrated remote access solution based on Ascend's entire product line. The MAX 4000 WAN access switch was also announced in April. The MAX 4000 solves a number of 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. and remote access issues for large corporate sites because of its ability to aggregate simultaneous dial-in calls from analog, ISDN and frame relay circuits onto a single high-speed digital line. 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 to enhance and extend existing corporate networks for applications such as 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 , 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. , bulk file transfer, 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, frame relay circuits and ATM circuits. -0-
ASCEND COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
(IN THOUSANDS, EXCEPT PER SHARE DATA)
QUARTER ENDED MARCH 31,
1995 1994
Net Sales $20,363 $6,817 Cost of Goods Sold 6,999 2,416
Gross Profit 13,364 4,401
Operating Expenses: Research and Development 1,890 571 Sales and Marketing 4,609 2,002 General and Administrative 1,683 489
Total Operating Expenses 8,182 3,062
Operating Income 5,182 1,339 Interest Income, Net 403 8 Income Before Income Taxes 5,585 1,347 Provision for Income Taxes 2,120 56 Net Income $3,465 $1,291 Net Income Per Share $0.27 $0.13 Number of Shares Used in Per Share Calculation 12,647 10,161
ASCEND COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(IN THOUSANDS)
MAR. 31, DEC. 31,
1995 1994
ASSETS
Cash, Cash Equivalents and Short-Term Investments $37,261 $35,548 Accounts Receivable, Net 10,985 7,786 Inventories, Net 9,643 5,256 Other Current Assets 2,959 2,276
Total Current Assets 60,848 50,866
Furniture, Fixtures and Equipment, Net 3,009 2,140 Other Assets 436 266 TOTAL ASSETS $64,293 $53,272 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts Payable and Accrued Liabilities $15,375 $9,326 Capitalized Lease Obligations, Current Portion 172 183
Total Current Liabilities 15,547 9,509
Capitalized Lease Obligations, Long-Term Portion 63 108 Stockholders' Equity: Common Stock 12 12 Additional Paid In Capital 45,268 43,705 Retained Earnings (Deficit) 3,403 (62)
Total Stockholders' Equity 48,683 43,655
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $64,293 $53,272 CONTACT: Ascend Communications, Inc. Robert K. Dahl, 510/769-6001, X-309 (CFO See Chief Financial Officer. ) Paula Cook, 510/769-6001, X-345 (Investor Relations Investor relations The process by which the corporation communicates with its investors. ) |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion