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From Joe Murphy...
DCI TELECOMMUNICATIONS ANNOUNCES BUYBACK PROGRAM
Jan. 21/STRATFORD, CT - The board of directors of DCI Telecommunications (OTC Bulletin Board: DCTC), an international supplier of telecommunications services, has authorized the company to repurchase up to $5 million of the company's stock commencing Januray 29, 1998. There are approximately 14 million shares of DCI common stock outstanding.
DCI intends to repurchase shares on the open market and in privately negotiated transactions at prevailing market prices. Timing of the repurchases will depend on market conditions, the market price of DCI's common stock and managements assessment of DCI's liquidity and cash flow needs. On January 8, 1998, the price of DCI's common stock was $2.09 per share.
"The repurchase authorization," said Joseph J. Murphy, president and chief executive officer, "reflects our belief that DCI's stock is undervalued and represents a good investment at this time. This is the first buyback program in the company's history and provides us with an opportunity to buyback our shares at attractive prices. It is also an indication of our financial strength, highlighted buy a strong cash position, and should confirm our confidence in the bright prospects for DCI's products and worldwide operations. This program will not alter the scheduled investments for expanding our current operations."
DCI Telecommunications is an international supplier of telephone services including long distance service, prepaid cellular and Internet products. The company has an extensive distribution network throughtout North America, Europe and the Far East and owns telephone switching facilities in Canada, the United Kingdom and Denmark. The company, which recently reported sales of $4.6 million and $1.3 million in profit (or 13 cents per share) for the first six months of fiscal 1998, has approximately twelve operating facilities serving customers in eight countries.
/Contact: Craig K. Murphy, Director, Investor Relations, DCI Telecommunications, Inc. 203 380 0910 ext. 301, email dcitel@aol.com website dcic.com |
