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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today
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To: James Harold Alton who wrote (16249)5/11/1999 11:49:00 AM
From: steve phil  Read Replies (2) of 19331
 
Would anyone know if the following release by IXC effect DCI in any way?

AUSTIN, Texas, May 11 (Reuters) - IXC Communications Inc.
said Tuesday it will cut back its operations in switched
wholesaling, a relatively-low-profit segment of the
telecommunications business, to focus on its more lucrative private line and data and
Internet businesses.

The communication services company said it expects to record a charge of $25-35
million in the second quarter of 1999 to account for staffing and equipment related
costs.

IXC posted a first quarter net loss of $42.2 million or $1.60 a share, far outstripping its
loss a year ago of $17.9 million or $0.83 a share.

In a statement, IXC Chairman Ben Scott said that without the impact of its switched
wholesale operations, a business tied to old style telephone service as opposed to
newer data and communications services, its results ''would have been very different''
in each of the last two quarters.

''We are already taking steps to mitigate the future impact of switched wholesale on
our overall operations,'' Scott said. He said that given the changes and assuming
continued strong growth in the company's other businesses, ''We expect to deliver
improved results over the balance of the year.''

IXC said its decision in 1995 to enter the switched wholesale business was made with
an awareness of the low profit margins. But it undertook the move to build economies
of scale for its other businesses, a factor it no longer considered necessary given its
subsequent growth.
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