Hi Joe,
DCI updated its FAQ page today
Edit - They must have done it Friday, judging by the date, I only saw it today
Last update: December 11, 1998
Has DCI changed its focus?
If focus is defined as selling minutes, the answer is "no." If focus means
changing from a predominantly prepaid phone card company to a long distance
carrier, the answer is "yes." Historically, prepaid phone card companies have
lower gross margins than long distance carriers.
In your push to become profitable, what do you intend to do with CyberFax?
CyberFax has a proven product but is presently limited to the number of
customers it can take on at any one time. This requires more capital
expenditures to produce a new product which will expand the number of
customers that can use the product at the same time. Since we are shifting
directions, as publicly stated, we are looking to either spin off or dispose of
CyberFax.
What does this latest press release with IXC mean to DCI shareholders?
It is by far the most significant event that has occurred in the history of this
young company because:
DCI has now become a global carrier which means it can carry its own
traffic.
DCI will have some of the best rates to offer customers in both the
wholesale and retail markets.
DCI will now be viewed as a long distance company and not just a prepaid
phone card company. This is something DCI has worked long and hard to
accomplish.
DCI will be able to co-locate their switched facilities with IXC, worldwide.
The Wall Street Journal article dated December 8, 1998 ( p. c13) stated,
"….IXC will provide services to DCI, which will give it (DCI) new business
opportunities." What does that mean?
Please refer to the previous question. It is important to note that this was the
first time DCI Telecommunications was written up in The Wall Street Journal.
How long will the process take regarding the merger with Wavetech?
As you know shareholders of both companies have to approve the merger. Also,
the proxy material has to be approved by the SEC prior to distribution to
shareholders of both companies . As a result, we anticipate approval in late
January or early February, 1999.
When will the proxy material be sent to SEC for approval, regarding Wavetech?
We estimate the middle of December, 1998.
Upon completion of the Wavetech merger, how many shareholders will the
combined company have?
It is estimated that we will have between 5,000 to 6,000 shareholders.
In a recent press release, DCI stated that adjustments relating to timing, were
made to the previous year's quarter with respect to the Muller Media and
CardCall International acquisitions. Could you please elaborate?
Muller Media was originally recorded when the definitive agreement was
signed, this was changed to when the put option was exercised. CardCall
International was originally recorded when CardCall's Board of Directors, who
owned over 72% of the common shares of CardCall International Holdings,
approved the agreement. This was changed to sixty days later when all the
shareholders of CardCall had approved the transaction. The combined effect on
net income as reported was minimal.
What is the difference between activation and usage in prepaid terminology?
Activation is when the card is turned on. Usage is the actual consumption of
minutes. Activation dictates immediate cash flow while usage dictates the
reporting of sales for accounting purposes.
There is an item in the Annual Report entitled "Due to Shareholders" - could
you explain?
Note 12 (Related Party Transactions) does not go into the details of the
aforementioned question. With the approval of the Board of Directors, Mr. and
Mrs. Murphy sold shares in private transactions in March and June of 1997, the
proceeds of which were put back into DCI. These proceeds were specifically
earmarked for CardCall companies. These transactions were fully reported to
the Securities and Exchange Commission via 10Q, 10K, and 144 filings which
can be verified through DCI's EDGAR filings (click on stock quote on our home
page from there you will see a link to "Insider"). |
