NEWS & PROFITS Reported: MicroTel's Affiliate Company, Digital Transmission Systems Inc., Reports Fourth Fiscal Quarter Profit
Business Editors & High-Tech Writers
ONTARIO, Calif.--(BUSINESS WIRE)--Sept. 13, 1999--
This is DTS' Second Consecutive Quarterly Profit on a 40% Increase in
Revenue Over its Third Fiscal Quarter
MicroTel International Inc. (OTC BB:MCTL) ("MicroTel") announced
its 37% owned affiliate company, Digital Transmission Systems Inc.
("DTS") (OTC BB:DTSX), reported its second consecutive quarterly
profit since MicroTel acquired its equity position in DTS in January
1999.
DTS' net sales for its fourth quarter of $2.7 million were up
40% from its third quarter of fiscal 1999 and net income for the
period was $453,000, or $.10 per share. DTS' operating income was
$49,000 before an extraordinary gain of $468,000 (see DTS announcement
dated 9/10/99 for additional details).
MicroTel previously reported its 37% share of DTS' fourth-
quarter profit in MicroTel's second-quarter results for the period
ending June 30, 1999.
Commenting on the DTS operating results, Carmine T. Oliva
chairman, president and CEO of MicroTel stated, "We are pleased with
the return on our investment in DTS over the past six months and we
commend the strong DTS management team which was the foremost factor
in MicroTel's decision to partner with DTS.
"MicroTel and DTS are now beginning joint strategic sales,
marketing and engineering initiatives under the leadership of Andy
Salazar, DTS' chief executive officer, and we expect these efforts to
substantially benefit both companies going forward."
MicroTel International is a holding company for its three wholly
owned subsidiaries -- CXR Telcom Corp. in Fremont, Calif.; CXR S.A. in
Paris; and XIT Corp. in Ontario, Calif.; and its 37% owned affiliate
company Digital Transmission Systems Inc., located near Atlanta.
CXR Telcom Corp., CXR S.A. and Digital Transmission Systems Inc.
design, manufacture and market electronic telecommunication test
instruments, wireless and wireline voice, data and video transmission
and networking equipment.
XIT Corp. designs, manufactures and markets information
technology products, including input and display components, subsystem
assemblies and power supplies. The company operates out of facilities
in the United States, France, England and Japan.
The statements in this news release relating to matters that are
not historical are forward-looking statements which involve risks and
uncertainties including, without limitation, economic and competitive
conditions in the markets served by the company affecting the demand
for the company's products, product pricing, market acceptance, access
to distribution channels and other risks detailed from time to time in
the company's Securities and Exchange Commission filings. These risks
could cause actual results to differ materially from those anticipated
or described herein.
--30--JP/np* JS/np
CONTACT: MicroTel International Inc., Ontario
James P. Butler, 909/456-4321
Web site: microtelinternational.com
|
