NEWS OUT!!!!
(PR NEWSWIRE) DJ: DCI Telecommunications Acquisitions Continue; Signs Pact
DJ: DCI Telecommunications Acquisitions Continue; Signs Pact with Edge
Communications
STRATFORD, Conn., April 6 /PRNewswire/ -- DCI Telecommunications, Inc. (OTC
Bulletin Board: DCTC), an international supplier of telecommunications
services, announced today the signing of a letter of intent to acquire
privately owned Edge Communications, a Maryland-based prepaid phone card
company. The transaction, which involves a combination of cash and
preferred stock is valued at $8 million.
Since its founding in 1994, Edge has been engaged in the prepaid telephone
card business. It has achieved success by directing its activities
primarily to urban and ethnic markets throughout the United States. An
onsite Customer Service Division is equipped with a state of the art IVR
(Interactive Voice Response) protocol. It is staffed exclusively with
bilingual representatives in order to service its customers most
efficiently. In 1997, its revenues reached $5.4 million, representing
growth of 990% over 1996 results. Edge is currently profitable and is doing
over $8 million in sales for the trailing twelve months ended March 31, 1998
-- for calendar 1998, its sales are projected to reach S15 million.
This acquisition, along with the recently announced Payless Communications
deal, will add $17 million in sales to the company for the trailing twelve
month period. Daniel J. Murphy, DCI's vice president, financial planning
said, "With the addition of these two companies to our existing core
businesses, revenues should reach $45 million for the fiscal year ending
March 31, 1999. Also, the increase in the volume of minutes through these
two acquisitions should allow for the further reduction in costs as new
price break plateaus are achieved."
Edge has successfully marketed different prepaid phone card brands of its
own design, customized to specific markets. Its marketing programs include
alliances with an array of long distance carriers: WorldCom, MCI, Frontier,
Enhanced Communications, the Telephone Company of Central Florida, Teleglobe
International, and Cable & Wireless. In the coming months, Edge is planning
to launch marketing campaigns for new products such as 800 number foreign
origination, prepaid dial tone, prepaid pagers, and point-of-sale
activation.
DCI recently announced the signing of an agreement with Telefonica de Espana
allowing it to establish a telecommunications network that will greatly
reduce the cost of long distance telephone services throughout southern
Spain.
DCI Telecommunications is an international supplier of telephone services,
including long distance service, prepaid telephone cards and Internet
products. The company has an extensive distribution network throughout
North America, Europe and the Far East and owns telephone switching
facilities in Canada, the United Kingdom, Spain and Denmark. The company
recently reported sales of $6.2 million and $1.3 million in profit (13 cents
per share), for the first nine months of fiscal 1998, and has 12 operating
facilities, serving customers in eight countries.
Safe Harbor Statement under the Private Securities Litigation Act of 1995:
The statements which are not historical facts contained in this press
release are forward-looking statements that involve certain risks and
uncertainties including, but not limited to, risks associated with the new
uncertainty of future financial results, additional financing requirements,
development of new products, regulatory approval processes, the impact of
competitive products or pricing, unpredictability of patent protection,
technological changes, the effect of economic conditions and other
uncertainties detailed in the company's filings, with the Securities and
Exchange Commission.
/Contact: Craig K. Murphy, Director, Investor Relations of DCI
Telecommunications, 203-380-0910 ext. 301, or dcitel@aol.com/
*** end of story ***
|
