News is out on COMTEX!!!
(PR NEWSWIRE) DJ: DCI Telecommunications Reports Record Breaking Sales and
DJ: DCI Telecommunications Reports Record Breaking Sales and Earnings
STRATFORD, Conn., June 12 /PRNewswire/ -- DCI Telecommunications, Inc. (OTC
Bulletin Board: DCTC) today reported net income, before preferred dividends,
of $0.9 million for the fiscal year ended March 31, 1998 versus net loss of
$0.1 million for the fiscal year ended March 31, 1997. On a per share
basis, net income, before preferred dividends, was 8 cents in the most
recent fiscal year compared with a net loss of 3 cents a year ago.
Joseph J. Murphy, president and chief executive officer stated, "The
improvement in fiscal 1998 principally reflects the impact of the $9 million
sale of our British-based prepaid phone card distribution contract to
SmarTalk which was the highlight of the year, enabling the company to post
profitable 12 month figures." In addition, Murphy said the company
consolidated facilities, reduced personnel, discontinued certain operations
that either didn't relate to the core business, and unwound certain other
operations.
"We did not want to carry any unwanted baggage into the future," DCI's CEO
said. The significant gain, from the contract sale, allowed the company to
take a one time restructuring charge, relating to European operations, while
at the same time expand its international telecommunications operations,
both through internal and external growth. Recent examples include the
acquisition of Edge Communications and the letter of intent to acquire Locus
Corporation. DCI's improved financial results, do not reflect the
acquisition of Edge Communications, which was completed in April 1998.
Consolidated revenues were $8.1 million from continuing operations in the
fiscal year ended March 31, 1998 versus $1.9 million in the same period a
year ago, an increase of 426 percent.
DCI's media business segment accounted for $2.7 million of the $8.1 million
in revenues and $45,000 in net income in 1998, versus $0.8 million of the
$1.9 million in 1997 and $186,000 in net income in 1997. "No matter how one
analyzes it there was a substantial improvement in the Income Statement
relating to telecom operations."
Mr. Murphy also stated, "If the Edge Communications acquisition, which will
be accounted for on a pooling of interest basis, had been completed in March
rather than April of 1998, that total revenues for fiscal year 1998 would
have been $16 million versus $2.6 million in fiscal 1997 and that net income
for fiscal 1998 would have increased $0.1 million versus a break-even for
fiscal 1997. We are very excited about Edge's growth subsequent to the
acquisition as evidenced by the $2 million in revenues it posted in the
month of May 1998 alone."
The strength of the company's Balance Sheet manifested itself by enabling
the company to declare a special dividend and a buy back program during the
current fiscal year.
With its selective elimination of certain business activities and strategic
allocation of resources in the telecommunications growth areas, DCI is well
positioned to attain the earnings and revenue goals it has set for itself
this coming fiscal year, according to Murphy.
DCI Telecommunications is an international supplier of telephone services,
including long distance service, prepaid telephone cards and Internet
products. The company has extensive networks for the distribution of its
products and services throughout North America., Europe and the Far East and
owns telephone switching facilities in Canada, the United Kingdom, Spain and
Denmark. The company 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. 7000, or dcitel@aol.com/
14:56 EDT
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