Ascend Communications : No. 2 on the Growth 100
Mighty big growth spurt for a 7-year-old.
Ascend is watching its sales ascend through the roof. The Alameda-based firm, which makes high-speed computer networking products, racked up $150 million in sales last year, an increase of 280% from 1994. As this section illustrates, such technology networking companies are in the hottest industry around.
Ascend, founded in 1989, is riding a high-tech wave. Having gone on a PC buying spree, businesses now need software that can efficiently link computers. Ascend makes products that allow such networking at very high speeds.
The stock, which has recently traded around $92, remains a risky bet based on its relatively low earnings per share, which have ranged from 30 cents to 70 cents a share in recent quarters. But sales have remained strong into this year. For the first quarter ended March 31, the company reported net sales of $91.1 million, up 347% over $20.4 million the year before.
At the end of April, Nelson’s Institutional Research raised its estimate of future earnings, seeing more than a dollar a share by the company’s fiscal 1997.
Ascend President and Chief Executive Mory Ejabat noted that about 42% of the company’s first-quarter sales were made overseas.
