To: Moe Damghani who wrote (3597 ) 2/17/1998 4:09:00 PM From: larry pollock Read Replies (2) | Respond to
It is good to see these contracts for the new Celcore acquisition. However, there is no indication as to the dollar amount of the contracts, nor the profit impact. In other words, how much is Celocore contributing to DSC's bottom-line. There are still other concerns with DSC. During the last conference call, the listeners were told that the Danish unit, with fourth quarterly revenues at the $41 million level, is still not at a break-even level. Further, listeners were told that the Danish unit is not expected to be at a break-even level until the second half of 1998. The third quarter 10-Q stated that the Danish unit has two problems:late introduction of new products, and the lack of acceptance of products available. The bottom line is that Danish unit, which is contributing 8%-10% of consolidated revenues and which has been owned since November 1994, continues to lose money. Relative to DSC's iMTN products, while revenues are improving, are not making money. The only good news is that DSC's slow-to-react-management dumped Airspan. From previous postings, Airspan cost shareholders plenty.
