TECH TALK
By Paul Motter (TMF DotCom)

NEW YORK, NY (June 17, 1997) -- The pundits have been playing a round of "Strike Up the Band" this week as they rush to cover just in case the concerns of one of their colleagues finds a grain of truth. Just last month the accolades were flying for ASCEND COMMUNICATIONS INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ASND)") else Response.Write("(Nasdaq: ASND)") end if %> and CASCADE COMMUNICATIONS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CSCC)") else Response.Write("(Nasdaq: CSCC)") end if %> to be the definitive merger to give CISCO SYSTEMS <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: CSCO)") else Response.Write("(Nasdaq: CSCO)") end if %> a run for its money. Then a shortsighted Dow Jones story reported that the Ascend's MAX line of remote access switches with 56k modems had a software problem and that shipping of the products was delayed. Analyst downgrades followed. It turns out that the problem only affected the MAX TNT, the brand-new mega-port remote access concentrator, and not the MAX 400 series of remote access switches, which in 1996 made up 82% of revenues, already deployed to several ISPs with working 56k modems.

According to Bernie Schneider, Vice President of Strategic Business Development, there was a software problem with the 56k modem card so current MAX TNTs are shipping with a standard V.34 modem card that will be swapped in the field with a new 56k modem card as soon as production schedules for the new cards make it possible. Schneider said production should be fully ramped up within weeks. Schneider would not comment on what it will cost per card to update the TNTs, but did say that because of reserves set aside for such contingencies the cost would not be a liability for the company's bottom line.

Schneider made it very clear that the problem was related to the MAX TNT software and not at all due to the Rockwell chip it uses. Several MAX 400 series switches are already deployed in the marketplace with working 56k Rockwell based modems.

Analyst concerns have also circulated for sales of the GRF 400, the new router from Ascend capable of forwarding data at 20 times the speed of a conventional router. The concerns were for "prolonged testing cycles due to interoperability issues." According to Schneider, that problem is interoperability with "slower routers made by other manufacturers."

The GRF is capable of sending routing table updates to conventional routers faster than they can process them and stability is affected in the internetwork. Of course, interoperability is an important concern and measures are being implemented to optimize communication with other manufacturers, but interoperability within GRF 400 internetworks is definitely not a problem. Schneider stressed that over 60 customers are already using the GRF successfully. Some, as in UUNet, are already in the third wave of deployment while a few are still in the testing stage.

What about the merger with Cascade? Some analysts have cited concerns that merger issues could create a period of confusion and distraction detrimental to the company's ability to manage. The comparison between Ascend/Cascade and the Synoptics/Wellfleet merger into BAY NETWORKS <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BAY)") else Response.Write("(NYSE: BAY)") end if %> is common. When asked about these concerns Schneider said, "We know that decisive action is paramount to succeeding," and when asked what sort of action is being taken, he said, "The AX [line of remote access switches manufactured by Cascade Communications] has already been cancelled."

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