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Ascend Posts Strong Profit on Switch Sales

April 10, 1998|From Bloomberg News

Ascend Communications Inc. on Thursday reported earnings that slightly exceeded analysts' expectations as the networking company sold more of its large switches to phone companies and Internet service providers.

Alameda-based Ascend said net income for the quarter ending March 31 was $52.4 million, or 26 cents a diluted share, compared with a loss of $163.2 million, or 88 cents, in the year-earlier period. The company was expected to earn 25 cents a share, based on a survey by IBES International Inc. The numbers are adjusted to include subsidiary Cascade Communications Corp.

Sales of switches continued to grow as telecom carriers expand their networks to handle increasing Internet traffic. Revenue from Ascend's remote-access concentrators, which route incoming Internet calls, also rose, reversing a six-month trend.

Ascend shares fell 81 cents to close at $39.88 on Nasdaq.

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