Ascend Communications, Inc. announces financial results for second quarter.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 17, 1995--Ascend Communications, Inc. (NASDAQ-ASND) today reported its financial results for the second quarter ended June 30, 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 $28.6 million and net income was $5.3 million ($0.21 per share). Compared with financial results for the quarter ended June 30, 1994, sales increased 247% from $8.2 million and net income increased 197% from $1.8 million ($.08 per share after adjusting for the two for one stock split declared by the Company in May of 1995). Net income for the second quarter of 1994 was favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. affected by lower provisions for income taxes as a result of the utilization of net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. and research and development tax credit carryforwards Carryforwards Tax losses allowed to be applied to offset future income in some specified number of future years. . Commenting on these results, Mory Ejabat, president and chief executive officer of Ascend, said, "We are pleased with the financial results for the second quarter. The continuing growth in sales is an indicator of the market acceptance of our products. This growth was driven by strong demand in the 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. of our business, which accounted for approximately 25% of our revenues in the second quarter. Our other market channels remained strong as well, with approximate contributions to sales by resellers and distributors accounting for 31%, international customers 23%, carriers and equipment providers 19%, and the direct channel 2%, respectively. I am also pleased to report that Bernard Ber·nard , Claude 1813-1878. French physiologist noted for his study of the digestive and nervous systems. Schneider has joined us as Vice President of Marketing. Bernie was formerly with Sprint, where he served as Director of Product Marketing. In other organizational developments, Jeanette Symons has been promoted to the position of Vice President, Engineering and Chief Technical Officer. Jeanette is a founder of the Company and most recently served as Assistant Vice President, Engineering. Bob Dahl Robert Allen Dahl (born November 5, 1968 in Chicago, Illinois) was an American football offensive lineman for the NFL's Cleveland Browns and Washington Redskins. He played college football for the University of Notre Dame. , our Chief Financial Officer, has been elected a member of the Board of Directors. Bob has been with Ascend since January, 1994." 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 JUNE 30, SIX MONTHS ENDED JUNE 30,
1995 1994 1995 1994
Net Sales $28,581 $8,235 $48,944 $15,052 Cost of Goods Sold 9,819 2,711 16,818 5,127 Gross Profit 18,762 5,524 32,126 9,925 Operating Expenses: Research and Development 1,915 697 3,805 1,268 Sales and Marketing 6,728 2,241 11,337 4,243 General and Administrative 1,865 707 3,548 1,196
Total Operating
Expenses 10,508 3,645 18,690 6,707
Operating Income 8,254 1,879 13,436 3,218 Interest Income, Net 367 122 770 130 Income Before Income Taxes 8,621 2,001 14,206 3,348 Provision for Income Taxes 3,279 200 5,399 256 Net Income $5,342 $1,801 $8,807 $3,092 Net Income Per Share $0.21 $0.08 $0.35 $0.14 Number of Shares Used in Per Share Calculation 25,625 22,742 25,460 21,532 All share and per share data have been retroactively adjusted for the 2-for-1 stock split declared by the company in May 1995.
ASCEND COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(IN THOUSANDS)
JUNE 30, DEC. 31,
1995 1994
ASSETS
Cash, Cash Equivalents and Short-Term Investments $39,713 $35,548 Accounts Receivable, Net 13,467 7,786 Inventories, Net 12,092 5,256 Other Current Assets 2,936 2,276 Total Current Assets 68,208 50,866 Furniture, Fixtures and Equipment, Net 4,732 2,140 Other Assets 517 266 TOTAL ASSETS $73,457 $53,272 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts Payable and Accrued Liabilities $17,293 $9,617 Total Current Liabilities 17,293 9,617 Stockholders' Equity: Common Stock 24 24 Additional Paid In Capital 47,395 43,693 Retained Earnings (Deficit) 8,745 (62) Total Stockholders' Equity 56,164 43,655 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $73,457 $53,272 CONTACT: Ascend Communications 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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