General DataComm Reports $14.5 Million in Debt Conversions
biz.yahoo.com
The drowned out effect should only be temporary. Losing some converts is usually a good sign for a company.
Happily Long GDC,
Duke
(full story follows)
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Wednesday January 5, 8:09 am Eastern Time
Company Press Release
General DataComm Reports $14.5 Million in Debt Conversions
MIDDLEBURY, Conn.--(BUSINESS WIRE)--Jan. 5, 2000--General DataComm Industries, Inc. (NYSE: GDC - news) announced today that approximately $14.5 million in 7-3/4% convertible debentures were converted and exchanged for common stock in three separate, unsolicited transactions at the end of 1999. This had the positive effect of reducing debt and increasing stockholders' equity by approximately $14.5 million.
``The increase in GDC's stock price in recent months provided the stimulus for these transactions,' said William G. Henry, vice president and chief financial officer of GDC. ``Without expending any cash, GDC was able to eliminate about 60% of its convertible debt and the related interest expense.'
Under the accounting rules, the Company will record a one-time, non-cash charge of approximately $1.6 million in the quarter ended December 31, 1999 for the market value of the additional shares of common stock issued in these transactions.
This news release includes certain forward-looking statements, which involve risks and uncertainties. Actual results may differ materially from results indicated in any forward-looking statements. The Company cautions that future results are subject to, and should be considered in light of risks, uncertainties, and other factors which may affect future results including, but not limited to, competition, rapidly changing technology, regulatory requirements, and uncertainties of international trade.
About General DataComm Industries, Inc.
GDC (www.gdc.com) is a leader in the design, development and manufacture of multiservice communications systems for service providers and enterprise businesses. The GDC APEX© multiservice switching platforms are used extensively within the world's largest public ATM Wide Area Networks. A broad range of Advanced Network Access products provide DSL/Universal Access System solutions; integrated analog, DDS and T1/E1/T3 access products; all managed under a distributed, open network management framework, ProSphere©. GDC is headquartered in Middlebury, CT, USA, and has an extensive network of subsidiaries and partners located throughout North America, South America, Europe, the Middle East, Asia and the Pacific Rim.
All GDC products mentioned in this document are trademarks or registered trademarks of General DataComm, Inc., a wholly-owned operating subsidiary of General DataComm Industries, Inc.
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Contact:
General DataComm Industries, Inc.
Robert S. Smith, vice president, business development
Phone: 203/758-1811
E-mail: bob.smith@gdc.com |
