Ascend Communications Reports 1994 Financial Results - Sales Increase 143%; Net Income Increases 569%

Business Wire, Jan 16, 1995

ALAMEDA, Calif.--(BUSINESS WIRE)--Jan. 16, 1995--Ascend Communications, Inc. (NASDAQ:ASND) today reported its financial results for the year ended December 31, 1994. For the year net sales were $39.3 million and net income was $8.7 million ($0.75 per share). Compared with financial results for the year ended December 31, 1993, sales increased 143%, net income increased 569% and net income per share increased 477%. Net sales and net income for 1993 were $16.2 million and $1.3 million ($0.13 per share), respectively.

For the fourth quarter ended December 31, 1994, net sales were $14.0 million and net income was $3.1 million ($0.25 per share). Compared with the fourth quarter of 1993, these results represent a 164% increase over net sales of $5.3 million, a 288% increase over net income of $0.8 million and a 213% increase over net income per share of $0.08. Also, compared with the quarter ended September 30, 1994, these results represent a 36% increase over net sales of $10.3 million, a 24% increase over net income of $2.5 million and a 25% increase over net income per share of $0.20.

Commenting on the Company's performance, Robert J. Ryan, founder, chairman and chief executive officer of Ascend, said, "1994 has been an extremely successful year for Ascend. In addition to the outstanding financial results which we are announcing today, in May we completed a very successful initial public offering of our common stock. Also, we increased and enhanced our product offerings by introducing several new products designed to address the needs of customers in the remote access, Internet access and videoconferencing markets while adding several new resellers to our global distribution network. Perhaps most importantly, we strengthened our workforce by adding many experienced and highly motivated people who contributed to our growth in 1994 and are key to our continuing success."

Regarding prospects for 1995, Ryan said, "We are optimistic regarding the potential for continuing growth in our business during 1995. We believe that telecommunications carriers will continue to increase the variety and the availability of their offerings for switched and packetized digital services. Also, we believe that corporations and individuals will continue to extend their communications networks and adopt applications which require the speed and capacity provided by such services. Finally, we believe that the continuing growth in the number and type of Internet and on-line services which are available will increase the demand for digital services. We believe we are well positioned to participate in these trends given the capabilities of our products and the breadth of our distribution network."

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 multiplexing or bandwidth on demand to enhance and extend existing corporate networks for applications such as videoconferencing, remote access, Internet access, bulk file transfer, imaging, and integrated voice, video and data access. Ascend's products also use bandwidth on demand to provide automatic emergency backup and bandwidth capacity for peak-period overflow to complement private leased line, frame relay and ATM networks.

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