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Technology Stocks : ADC Telecommunications -- Ignore unavailable to you. Want to Upgrade?


To: John Carragher who wrote (409)3/23/1998 9:26:00 AM
From: princesedi  Respond to of 1944
 
MCI Selects ADC's Integrated Communications Access Server (ICX) for Local Service Termination

MINNEAPOLIS--(BUSINESS WIRE)--March 23, 1998--ADC Telecommunications, Inc. (NASDAQ:ADCT), announced today that MCI Communications has selected ADC's Integrated Communications Access Server (ICX(TM)) system as the customer located equipment (CLE) element to terminate voice and data services as MCI expands into local service markets. The ICX system currently is being deployed throughout the United States.

The ICX system allows MCI to provision a wide variety of services, such as POTS, ISDN, ATM, frame relay and others, to its local service customers from a highly flexible service access platform. With its unique architecture, the ICX system supports a single service or the entire range of services simultaneously and supplies MCI with remote diagnostic and maintenance capabilities. The adaptive nature of the ICX architecture also makes it easier for MCI to upgrade or add services as they become available in the future.

The ICX system is based on Premisys Communications' flagship integrated access solution, the Integrated Multiple Access Communications Server (IMACS). Integrating access services on a single platform spares MCI the time and capital dollars otherwise necessary to construct independent networks for each service it wants to offer. Instead, the ICX system combines traffic from all of the services and transports it cost efficiently over high-speed T1 or E1 circuits.

"We welcome the opportunity to support MCI's efforts to foster competition in the local service market," said Barry Kantner, director of marketing for ADC's Access Products Division. "Service access devices are critical to our overall strategy to provide carriers with the most flexible and robust service delivery solutions available in the local loop. We plan to build a strong presence in the growing local market by providing products such as the ICX system."

"MCI is investing in local telephone facilities to ensure that consumers enjoy more choices, lower prices, and better services in the local telephone market. The ICX system offers us the flexibility to accommodate our customers' demands for services today and in the future," said Shawn O'Donnell, director of transmission standards and engineering for MCI. "Additionally, ADC's commitment to training, service and support for its products distinguishes the ICX system from other offerings."

"The ICX is the ideal access vehicle of these competitive times," said Nicholas J. Williams, Premisys Communications president and chief operating officer. "It will allow MCI to move to new markets at will, offering a full array of voice and data services from day one. Their customers can't ask for a better response than that."

MCI, headquartered in Washington, D.C., is a leading provider of local-to-global communication services to business, government and residential users. The company's fast-growing portfolio of advanced data, Internet and IT services now accounts for nearly a quarter of MCI's $19.7 billion in annual revenue. MCI operates one of the world's largest and most advanced digital networks, connecting local markets in the U.S. to more than 280 countries and locations worldwide. MCI has agreed to merge with WorldCom, one of the world's fastest-growing communications companies. The merger, which is expected to be completed by mid-1998, will create MCI WorldCom, a company uniquely positioned in the U.S. local and long distance markets as well as the global data and Internet markets.

Premisys Communications, Inc. (NASDAQ-PRMS), based in Fremont, California, pioneered development of integrated access solutions for telecommunications service providers. Today, Premisys leads the industry worldwide with a growing family of access products, featuring its Integrated Multiple Access Communications Server (IMACS). Premisys' products allow service providers to quickly and cost-effectively accommodate the growing demand from businesses for voice, data and video communications services. More information about Premisys Communications and its products is available on its Worldwide Web site (www.premisys.com) and by contacting its Fremont headquarters (1-800-301-8815).

ADC Telecommunications, Inc. (NASDAQ: ADCT) designs, manufactures, markets and integrates communications hardware and software systems. These systems are used by global service providers such as Regional Bell Operating Companies, post, telephone and telegraph (PTT) organizations, and cable television operators to deliver communications services to their customers. The company also provides products used in enterprise networks for connection and access to the public network. Revenues for fiscal year 1997 were $1.164 billion. More information about ADC Telecommunications, Inc., and its business units, products and technologies, is available at its Web site, adc.com, or by calling 1-800-366-3891 ext. 3223.

CONTACT:

Lynne High, ADC Scott E. Smith

Marketing Communications Premisys Communications

612-946-3136 (510) 353-2326

lynne-high@adc.com scott.smith@premisys.com

or

Mark Borman, ADC

Investor Relations

612-946-3338

mark-borman@adc.com



To: John Carragher who wrote (409)3/26/1998 4:48:00 PM
From: Nevin S.  Respond to of 1944
 
To all: nice little write up by Ingred Hendershot.

techstocks.com

ADC Telecommunications

Ingrid Hendershot of Hendershot Investments provides the following stock idea. An annual subscription is $45 for 4 issues. You may contact them by phone at (703)-361-6130. ADC Telecommunications (ADCT 25 3/16) is a recent selection from their newsletter. Below is the write up.

"ADC Telecommunications designs, manufactures, markets and integrates communications hardware and software systems. These systems are used by global service providers such as the Regional Bell Operating Companies, post telephone and telegraph (PTT's), and cable TV operators to deliver communications services to their customers. The company also provides products used in enterprise networks for connection and access to the public network. Headquartered in Minnesota, the company has manufacturing, sales or services offices in seventeen countries around the world with more than 6,000 employees worldwide.

Steady Long-Term Growth

Founded in 1935, Audio Development Corp. started out making rather humble machines called audiometers to test children's hearing. Since then, ADC Telecommunications has evolved into a high-tech company, benefiting from the strong global growth in the telecommunications, wireless, cable TV and Internet Industries.

Over the last decade, sales have steadily risen. Growth has accelerated in the last five years with revenues and net income both ringing up better than 30% compound annual gains. During 1997, ADC's sales rose 41% crossing the billion dollar mark for the first time. Operating income joined in the celebration by also jumping 41%.

High Growth Opportunities

Further growth opportunities await ADC Telecommunications, as both business and residential customers clamor for high-speed network services. Telephone companies, cable television operators, wireless network providers and other public network providers are feverishly building the infrastructure required to offer higher speed data, video and telephone services, as well as Internet, entertainment and other interactive services.

ADC telecommunications offers a broad range of products and services that enable its customers to construct and upgrade their telecommunications networks to support this increasing user demand.

ADC's focus is on improving network access by clearing the bottlenecks in the local loop-the portion of the public network from the serving office to the handset or terminal equipment at the home or business. ADC recently announced a breakthrough in Ethernet technology, which speeds data transmission and significantly lowers the cost of offering voice, video and telephony services in metropolitan networks.

In addition to developing sophisticated products and technologies, ADC also provides in-depth systems integration services to maximize the performance of networks. During 1997, ADC's systems integration sales shot 166% higher.

ADC Telecommunications is committed to quality as the company continuously strives to meet or exceed customers' expectations. Evidence of success in this regard is the recent receipt of the "Outstanding Supplier of the Year" award from Lucent Technologies, which selects three suppliers yearly for this coveted award. ADC Kentrox's selection was based on yearly performance for quality, delivery and cost.

Strong Financial Position

Over the last 10 years, ADC has maintained a strong financial position with little or no long-term debt. Cash flow generated from operations has more than doubled in the last five years. ADC continues to significantly invest in facilities and systems upgrades to support further growth.

ADC reported its first quarter results for fiscal 1998. Sales growth slowed to 12% with net income flat. Seasonality factors typically impact first quarter performance as customers reduce spending due in part to the holidays. ADC's stock price pulled back and now is in line with fundamentals. This provides long-term investors with a good buying opportunity into ADC and a way to capitalize on the construction of the Information Superhighway.

Going forward, ADC expects improved results. Based on current product mix, orders and shipments in each of ADC's business units, 20% growth in overall revenues and earnings during the remainder of 1998 appears achievable. ADC's stock is volatile and only suitable for risk-tolerant investors."

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