USA Digital Completes Purchase of Tampa Interconnect Company
TAMPA, Fla.--(BUSINESS WIRE)--Aug. 10, 1999--USA Digital, Inc. (OTC BB:UDIG), announced today that it had completed its acquisition of Telephone Engineering and Maintenance, Inc. (T.E.A.M.), a Tampa, Florida based telephone interconnect company that has been in business since 1986.
During its 1998 fiscal year, T.E.A.M. generated nearly $800,000 in operating revenues with gross profit margins in excess of 50%. Through the first 5 months of the current year T.E.A.M.'s revenues have increased by more than 35% while its profit margins have remained constant.
"With our acquisition of T.E.A.M., USA Digital is now positioned to provide its customers with Internet service, computer and network solutions, and the latest in telephone equipment and service," stated Mark D. Cobb, President of USA Digital. "Shortly, when we activate our first Siemen's (NASDAQ:SMAWY) DCO office switch we will also be offering local and long distance phone service to our clients. USA Digital's emphasis is to provide a total package of business and communications services with the emphasis on customer service."
USA Digital intends to achieve critical mass through the aggressive acquisition of Internet Service Providers (ISP), Interconnect Companies, Switchless Resellers and Computer Integrators by purchasing their customer base and revenue stream. While simultaneously developing an Internet infrastructure and Super Pop for the co-location of independent ISPs and Inter-Exchange Carriers to allow for the integration of High-Speed Internet access and Internet Telephony. This strategy is similar to that utilized by MCI Worldcom (NASDAQ:WCOM), Intermedia Communications (NASDAQ:ICIX), and Verio (NASDAQ:VRIO).
USA Digital, Inc. has recently been formed to take advantage of the opportunities that have been created by the explosion of the Internet and the Information Super Highway, along with the recent deregulation of the telecommunication's industry by the Telecommunications Act of 1996 (the "Act"). The Company's objective is to become a $100 million company in two years. The Company plans to accomplish this objective by aggressively acquiring local business solution vendors that have previously built a loyal customer base of small to medium businesses, and providing an entire line of Convergent Communications products and services with the emphasis on Internet Solutions to these newly acquired customers. Initially, USA Digital will concentrate its activities in the nine State BellSouth (NYSE:BLS) region.
Certain information and statements included in this release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the results, performance or achievements of the company to be materially different from any future results, performance, or achievements expressed or implied in such forward-looking statements.
CONTACT:
USA Digital Inc., Tampa
Mark D. Cobb, President, 813/230-9100 |
