Ascend Shares Plunge on Weak July Sales

Ascend Communications Inc. stock plunged nearly 10% after the computer-networking equipment maker disclosed it had weaker-than-expected results for July. In a filing with the Securities and Exchange Commission, the Alameda-based company said it earned $2.9 million on sales of $62.8 million for the 31-day period ended July 31. Wall Street had expected Ascend to report sales of $330 million for the quarter ending in September, so the company would have to report extraordinary sales for this month and the next, analysts said. “To make that kind of forecast, Ascend would have to make a heroic effort,” said Martin Pyykkonen, analyst at investment bank Furman Selz. Ascend stock fell $4.75 to close at $44.69 in Nasdaq trading of 24.8 million shares, making the stock the U.S. market’s most active. It is too early to tell why July’s results were less than expected, analysts said. One reason could be customer wins by Ascend rival Cisco Systems Inc., the biggest maker of networking equipment, Pyykkonen said. Ascend executives could not be reached for comment.