For Immediate Release
Contact:
Laura Barron
Digital Sound Corporation
(805) 566-2000
ldb@dsc.com
DIGITAL SOUND CORPORATION
REPORTS 1997 FOURTH QUARTER AND YEAR-END RESULTS
CARPINTERIA, CA - (January 27, 1998) --Digital Sound Corporation
(NASDAQ: DGSD), a leading supplier of enhanced services solutions to the
telecommunications industry, today reported its results for the fourth
quarter ended December 31, 1997.
Net sales for the fourth quarter ended December 31, 1997 were $6.3
million, compared with $5.9 million for the prior quarter and $6.2
million for the quarter ended December 31, 1996 and. For the quarter,
the company had a net loss of $5.5 million or 27 cents per share,
compared with a net loss of $5.1 million or 25 cents per share in the
prior quarter and $1.4 million or 7 cents per share for the quarter
ended December 31, 1996. The $5.5 million loss included a $1.5 million
one-time charge to reserves for certain inventory, licenses and other
items.
Net sales for the twelve months ended December 31, 1997 were $20.6
million with a net loss of $18.9 million or 93 cents per share, compared
with net sales of $22.3 million and a net loss of $6.8 million or 34
cents per share, for the twelve months ended December 31, 1996.
"Our fourth quarter results were in line with management expectations,"
said B. Robert Suh, Digital Sound vice president and chief financial
officer. "Our focus remains on long-term strategic initiatives to
position the company for future growth. We are continuing to execute
these initiatives."
During the quarter, Digital Sound announced a number of customer
commitments. Concord Technologies, a Seattle-based leading computer
telephony service company, selected Digital Sound's newest unified
messaging solution, InfoMail Express=E4 2.1. Singapore Telecom,
provider
of integrated telecommunications services to Singapore, announced the
trial of the first web-access unified messaging solution in Asia, using
Digital Sound's InfoMail Express 2.1. In addition, Digital Sound
announced that it had signed a contract with a major telecommunications
provider.
About Digital Sound
Digital Sound Corporation, a leading supplier of network-based,
communication-management solutions, gives people the freedom to manage
voice, fax and e-mail messages anytime, anywhere, using a telephone,
personal computer, fax, pager or Web browser. Digital Sound's product
line integrates messaging and speech technologies on an open-system
platform, giving its customers - public network service providers - a
strategic advantage in a highly competitive marketplace.
Digital Sound Corporation is headquartered in Santa Barbara county,
California with service and support offices in Europe and Asia. Contact
information: 6307 Carpinteria Avenue, Carpinteria, CA 93013. Phone:
(805) 566-2000. FAX: (805) 684-2848. Web: www.dsc.com.
Certain matters discussed within this press release may constitute
forward-looking statements within the meaning of the federal securities
laws. Although Digital Sound Corporation believes the statements are
based on reasonable assumptions, the company can give no assurance that
their expectations will be attained. Actual results and the timing of
certain events could differ materially from those projected in or
contemplated by the forward-looking statements due to a number of
factors, including, without limitation, inability of the Company to
successfully promote and sell its products, failure of products to
operate successfully, lack of customer orders, the cost of repair,
economic activity, competitive pricing, and the regulatory environment
in which the Company's customers operate and other factors detailed from
time to time in the Company's filings with the Securities and Exchange
Commission, including quarterly reports on form 10-Q, reports on form
8-K, and annual reports on form 10-K. |
