LCC International, Inc. Reports First Quarter Results In Accordance With Expectations
McLEAN, Va.--(BUSINESS WIRE)--May 11, 1998--
CEO outlines vision for the future
LCC International, Inc. (NASDAQ: LCCI), the world's largest RF engineering and wireless telecommunications consulting firm, today reported revenues for the first quarter ended March 31, 1998 of $33.1 million, down 3.7% from the $34.4 million posted in the first quarter of 1997.
Excluding the effect of non-cash compensation charges recognized in association with LCC's initial public offering, normalized net income for the first quarter was $0.4 million compared to $0.5 million for the first quarter of 1997, a decrease of $0.1 million or 23.1%. Normalized net income per share for the first quarter, decreased 20.0% to $0.04 (on 18.9 million shares) from $0.05 (on 18.6 million shares) in 1997. Basic and diluted net income per share for the current quarter were each $0.02 compared to $0.03 and $0.02 for basic and diluted net income per share, respectively, for the first quarter of 1997.
Dr. Geoffrey S. Carroll, president and chief executive officer of LCC said, "Despite increased investments in our tower business, new business development efforts, both domestically and internationally, along with year over year softness in domestic and Asia Pacific product sales, I am pleased that we were able to meet our first quarter expectations. After three months on the job it is now clear to me that we are on track for continued growth. Having said that, the focus of today's announcement is LCC's strategic vision for the future."
Dr. Carroll continued, "Our vision is clear. We intend to become a global services powerhouse serving the wireless telecommunications industry. This is a logical extension of LCC's heritage as a leader and innovator in the wireless world. And, I continue to believe that we are extremely well positioned to realize this ambitious goal."
Carroll indicated that in order to get from where the Company is today, to where it intends to be, LCC will focus its efforts and investments in three principal areas:
--better leveraging of its core capabilities and reorganization of
its production and delivery structures in order to increase
market share and improve profitability in existing markets;
--introducing new services by creatively redeploying and/or
recombining current core capabilities; and
--building and/or acquiring new core capabilities to participate in
some of the most exciting markets of the future in which the
Company is currently not yet involved.
Dr. Carroll elaborated, "In order to achieve immediate growth and progress in all three of these areas we have instituted a new matrix organizational structure that balances global lines of business with a greater emphasis on geographical presence. In addition, we have started to hire a number of key professionals to ensure that we have the appropriate knowledge and experience to execute our strategy. We have also begun to align ourselves with new business partners to open new markets and opportunities for our core capabilities."
"I am pleased to indicate that our efforts have already begun to pay off, both in terms of new lines of business and new customer relationships, and we plan to begin announcing the results of these efforts in the near future," Dr. Carroll commented.
As stated in previous public disclosures, in 1997 the Company began operating a new tower ownership business. In commenting on the strategy for the tower business going forward, Carroll said, "We are very excited about the potential of our tower ownership business, both domestically and internationally. During the next quarter, we intend to push the growth of our tower business aggressively and, in connection therewith, will be seeking to raise a sizable amount of additional capital to fund this growth."
Dr. Carroll concluded, "With that said, in order to establish leadership positions and to drive our business into new areas, particularly towers and outsourcing on a broad international scale, in the remaining quarters of calendar year 1998 we will be making investments in personnel, systems and new capabilities. We believe the benefits of these investments to be realized beginning in calendar year 1999." -0- Statements included in this news release which are not historical in nature are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. LCC International, Inc.'s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q contain certain detailed factors that could cause the Company's actual results to materially differ from forward-looking statements made by the Company, including, without limitation, statements regarding future growth, the acquisition of new management talent, strategic business partnerships, the Company's plans to expand and/or finance its tower business, and planned investments. |
