Ascend Communications' president and chief executive Mory Ejabat expects growth in the company?s modest European business, but not ahead of the market rate. With only 26 per cent of sales outside the US, Ascend has well under half its business in the non-US market, unlike the majority of its rivals in networking. When challenged, Ejabat offered no specific plans to improve Ascend?s European penetration.
"We are seeing growth in Europe but not as fast as the rest of the industry. We will get low double digit growth in the next two quarters," he said.
Ejabat said the European data communications business will be strong. Despite its modest non-US sales, Ascend is "comfortable with estimates" for its yearly results, which analysts predict will show around $240 million profit on turnover of $1.35 billion.
Speaking at the Hambrecht & Quist Technology Conference in San Francisco, Ejabat also said Ascend hopes to capitalise on the emergence of larger Internet service providers, and new technologies including voice over IP, virtual private networks (VPNs) and digital subscriber loo (DSL).
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