dba Telecom Announces Q2, 2000 Results
August 28, 2000-North Vancouver, BC, Canada: dba Telecom Corporation (CDNX: DBA) announced today its financial results for the second quarter of 2000.
During the second quarter, the company continued to rationalize its operations. Revenues were $510,790, partially reflecting the worldwide shortage in electronic components; at the end of the quarter, the company had a backorder file in excess of $1 million. Gross margins were reduced due to the write down of slow moving inventory and the fixed overhead cost element of cost of sales.
The company significantly lowered its corporate structure by closing its UK office where it now operates through a distributor, TGL Limited, and reducing Hong Kong and Australia staffing and overheads. This resulted in a restructuring provision of $121,000. Other operating expenditures were marginally higher at $1,213,947 resulting in a loss for the quarter of $1,332,608, or $0.03 per share, a slight improvement over the same period in 1999.
At the beginning of the quarter, the limited partnership converted their interest into dba Telecom shares, providing ongoing cash savings as royalty payments are no longer required. The company is actively pursuing several options for additional funding for increasing production requirements.
Garry Hines, President and CEO of dba Telecom said, "Our key strategies continue to be to increase revenues from new and existing customers, while ensuring that our production and operating costs continue to be streamlined. We’re also working towards expanded our product portfolio through strategic alliances and potential mergers and acquisitions. These goals will help dba open its products to new channels, products and markets."
Known internationally as “The SmarTalk Company”, dba Telecom provides a unique range of intelligent network handsets for use in a variety of applications in the Centrex, Computer Telephony and Communication Server markets. dba Telecom has sales and support offices in Atlanta, Charlotte, Los Angeles, Hong Kong, London and Sydney with engineering, marketing and administration located in Vancouver.
The Company’s shares are traded on the Canadian Venture Exchange under the symbol DBA.
The Canadian Venture Exchange has neither approved nor disapproved the information contained herein.
Contact:
Email: invest@dbatele.com
Website: www.dbatele.com |
