ASCEND COMMUNICATIONS INC
10-C, 1996-08-26
COMPUTER COMMUNICATIONS EQUIPMENT
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<PAGE>
 
                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549

                                   FORM 10-C

                REPORT BY ISSUER OF SECURITIES QUOTED ON NASDAQ

                         INTERDEALER QUOTATION SYSTEM

                 Filed pursuant to Section 13 or 15(d) of the
                Securities Exchange Act of 1934 and Rule 13a-17
                             or 15d-17 thereunder

                          ASCEND COMMUNICATIONS, INC.
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                (Exact name of issuer as specified in charter)

              1275 HARBOR BAY PARKWAY, ALAMEDA, CALIFORNIA 94502
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                   (Address of principal executive offices)

Issuer's telephone number, including area code:  (510) 769-6001
                                              ---------------------------------

                  I.  CHANGE IN NUMBER OF SHARES OUTSTANDING

Indicate any change (increase or decrease) of five percent or more in the number
of shares outstanding:

1.  Title of security    Common Stock
                      ----------------------------------------------------------
2.  Number of shares outstanding before the change  112,808,780 as of August 15,
                                                   -----------------------------
    1996
    ----
3.  Number of shares outstanding after the change  approximately 116,969,710
                                                  ------------------------------
4.  Effective date of change  August 15, 1996
                              --------------------------------------------------
5.  Method of change:  Specify method (such as merger, acquisition, exchange, 
    distribution, stock split, reverse split, acquisition of stock for treasury,
    etc.)   Acquisition, through merger of a subsidiary of the Issuer with and 
            --------------------------------------------------------------------
    into the acquired company.
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Give brief description of transaction:  On August 15, 1996, the Company issued 
                                        ----------------------------------------
approximately 4,160,930 shares of Common Stock in connection with the merger of 
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Nebula Acquisition Corporation, a Minnesota corporation and a wholly-owned 
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subsidiary of the Company, with and into NetStar, Inc., upon which NetStar, Inc.
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became a wholly-owned subsidiary of the Company.
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Date:  August 23, 1996
                                        ----------------------------------------
                                        Michael J. Johnson, Controller and Chief
                                        Accounting Officer


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