Ascend Communications reports 1995 financial results; sales increase 280%; Net income increases 251%.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)--Jan. 16, 1996--Ascend Communications, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ASND ASND A Streetcar Named Desire (play) ) today reported its financial results for the year ended December December: see month. 31, 1995. For the year, 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 $149.6 million and net income was $30.6 million ($0.56 per share). Compared with financial results for the year ended December 31, 1994, sales increased 280%, net income increased 251% and net income per share increased 195%. Net sales and net income for 1994 were $39.3 million and $8.7 million ($0.19 per share), respectively. For the fourth quarter ended December 31, 1995, net sales were $60.6 million and net income was $14.7 million ($0.25 per share). Compared with the fourth quarter of 1994, these results represent a 333% increase over net sales of $14.0 million, a 371% increase over net income of $3.1 million and a 317% increase over net income per share of $0.06. Also, compared with the third quarter ended September September: see month. 30, 1995, these results represent a 51% increase over net sales of $40.0 million, a 107% increase over net income of $7.1 million and a 92% increase over net income per share of $0.13. As previously reported, the Company declared a two-for-one stock split, payable in the form of a stock dividend, which was effective in January January: see month. 1996. Adjusted for the stock split, net income per share for years ended December 31, 1995 and 1994 would be $0.28 and $0.09 per share, respectively. For the quarters ended December 31, 1995 and 1994, net income per share would be $0.12 and $0.03, respectively. Commenting on the Company's performance, Mory Mory is the name or part of the name of three communes of France:
v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. without the increasing customer acceptance of our products and the commitment of our team to go above and beyond in their efforts to satisfy customer needs." "1995 was marked by many achievements." Ejabat continued. "In July July: see month. , we completed a highly successful secondary offering of our common stock. We enhanced our distribution strategy by implementing a two-tiered distribution system, signing on additional resellers and distributors, and expanding our relationships with the long distance carriers and Regional Bell Operating Companies The Regional Bell Operating Companies (RBOC) are the result of the U.S. Department of Justice antitrust suit against American Telephone & Telegraph. History . We successfully introduced several new products this year, which substantially expanded our product offerings and increased our ability to support the ever-changing Adj. 1. ever-changing - marked by continuous change or effective action changing dynamic, dynamical - characterized by action or forcefulness or force of personality; "a dynamic market"; "a dynamic speaker"; "the dynamic president of the firm" needs of our customers." Looking forward to 1996, Ejabat said that the Company will continue to expand into growing application markets such as 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. , remote access and multimedia access. "We intend to continue to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. our core business and technical competencies to provide solutions for the changing needs of our customer base, as well as pursuing our strategy of identifying and capitalizing on emerging market opportunities and leveraging those opportunities in which we already participate." Ascend Communications, Inc. develops, manufactures, markets, sells and supports a broad range of high-speed digital wide area network access products. The Company's products use inverse (mathematics) inverse - Given a function, f : D -> C, a function g : C -> D is called a left inverse for f if for all d in D, g (f d) = d and a right inverse if, for all c in C, f (g c) = c and an inverse if both conditions hold. multiplexing multiplexing, in communication, technique whereby two or more independent messages, or information-bearing signals, are carried by a single common medium, or channel. or bandwidth on demand for applications such as telecommuting, remote access, Internet access and multimedia access. -0-
ASCEND COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
UNAUDITED
(IN THOUSANDS, EXCEPT PER SHARE DATA)
QTR. ENDED DEC. 31, YEAR ENDED DEC. 31,
1995 1994 1995 1994
Net Sales $60,610 $14,002 $149,590 $39,343 Cost of Goods Sold 20,572 4,668 51,170 13,205 Gross Profit 40,038 9,334 98,420 26,138 Operating Expenses: Research and Development 3,481 1,275 9,609 3,595 Sales and Marketing 13,219 3,557 33,910 10,477 General and Administrative 2,240 1,165 8,044 3,053 Purchased R&D - - 3,032 -
Total Operating
Expenses 18,940 5,997 54,595 17,125
Operating Income 21,098 3,337 43,825 9,013 Interest Income, Net 2,587 378 5,493 892 Income Before Income Taxes 23,685 3,715 49,318 9,905 Provision for Income Taxes 9,000 600 18,745 1,206 Net Income $14,685 $3,115 $30,573 $8,699 Net Income Per Share (1) $0.25 $0.06 $0.56 $0.19 Number of Shares Used in Per Share Calculation (1) 59,811 49,840 54,488 46,400 (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 January 1996.
ASCEND COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(IN THOUSANDS)
DEC. 31, DEC. 31,
1995 1994
ASSETS
Cash, Cash Equivalents and Short-Term Investments $211,080 $35,548 Accounts Receivable, Net 30,553 7,786 Inventories, Net 24,855 5,256 Other Current Assets 8,053 2,276 Total Current Assets 274,541 50,866 Investments 51,515 - Furniture, Fixtures and Equipment, Net 8,931 2,140 Other Assets 463 266 TOTAL ASSETS $335,450 $53,272 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts Payable and Accrued Liabilities $39,320 $9,617 Total Current Liabilities 39,320 9,617 Stockholders' Equity: Common Stock 55 24 Additional Paid In Capital 265,564 43,693 Retained Earnings (Deficit) 30,511 (62) Total Stockholders' Equity 296,130 43,655 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $335,450 $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, Ext. 309 Paula Cook, 510/769-6001, Ext. 345 |
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