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(COMTEX) B: DCI ANNOUNCES $100 MILLION JOINT VENTURE AND RECORD BREAK
B: DCI ANNOUNCES $100 MILLION JOINT VENTURE AND RECORD BREAKING QUARTERLY
SALES;
Shareholders Approve Board of Directors, CPA Firm
LAKE BUENA VISTA, Fla., July 30 /PRNewswire/ -- DCI
Telecommunications, Inc. (OTC Bulletin Board: DCTC), an international
provider of telecommunications and Internet services, announced today
that it has entered into a Letter of Intent to joint venture with
TIMEWorldCom, a private long distance telecommunications company
located in Gaithersburg, Maryland. The agreement would combine
TIMEWorldCom with DCI's European operating unit, DCI Europe, Ltd.
TIMEWorldCom is an international provider of long distance services,
presently doing approximately $100 million in sales, all of which will
be contributed to the joint venture. The joint venture, 51% of which
will be owned by DCI, will provide TIMEWorldCom access to DCI's
switching facilities throughout Europe. DCI Europe will carry all of
TIMEWorldCom's international traffic originating in Europe. This
includes a major contract to provide approximately $100 million worth
of phone services for an Italian based provider during the next twelve
months. The agreement calls for TIMEWorldCom to purchase $10 million
of DCI Telecommunications convertible preferred stock, from which DCI
will use these proceeds to close the Locus transaction.
DCI recently announced the signing of a definitive agreement with Locus
Corporation, a facilities based carrier located in Fort Lee, New Jersey
which should push DCI's revenues over the $100 million mark. A Company
spokesman said that the joint venture with TIMEWorldCom could double
the Company's revenues, putting them over the $200 million mark.
There is already an existing relationship between the TIMEWorldCom and
DCI's Edge Communications subsidiary which currently provides prepaid
calling card services to TIMEWorldCom in the United States.
DCI also released its first quarter earnings for fiscal year 1999.
Citing first-quarter financial results, which were released concurrent
with the Company's annual meeting, Joseph J. Murphy, president and CEO
of DCI said gross revenue was $6.3 million for the quarter ended June
30, 1998, versus $4.2 million for the comparable quarter ended June 30,
1997. The first quarter loss from continuing operations was $816,000
versus a quarterly loss of $127,000 for the comparable prior-year
quarter. Murphy said the loss was anticipated due to the large
international commitment the Company has made in developing the
foundation for future profits by building infrastructures for both its
telecommunications services in Europe and the Internet fax services of
its CyberFax subsidiary. The recent agreement with TIMEWorldCom would
not have been possible without these costs being incurred.
"I am proud that we have accomplished the things we said we would,"
Murphy told shareholders. "DCI is building the foundation to become a
premier global provider of enhanced Internet telephony and, we expect
the fiscal year ending March 1999 to be the Company's best year.
Discussions have begun with a large provider of switch platforms to
help realize this goal. With the acquisitions of Edge Communications
and Locus Corporation and now this joint venture with TIMEWorldCom, we
believe DCI has only just begun to realize its potential."
Additionally it was announced that shareholders had reelected all
directors and re-appointed the firm of Schnitzer & Kondub, certified
public accountants, as the Company's independent public accountants for
the coming year. DCI's five directors, reelected to serve until the
next annual meeting of shareholders, are: Joseph J. Murphy, president
and CEO of DCI; John J. Adams, chief marketing officer for DCI; Carter
H. Hills, retired diplomat; Larry Shatsoff, chief operating officer for
DCI; and Lois S. Morris, chief executive officer of the Travel Source,
Ltd.
Based in Stratford, Connecticut, DCI is an international provider of
telecommunications services, including long distance, prepaid telephone
cards and Internet fax services. It has an extensive distribution
network throughout North America, Europe and the Far East, owns
telephone switching facilities in Canada, the United Kingdom, Spain and
Denmark, 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.
SOURCE DCI Telecommunications, Inc.
-0- 07/30/98 /CONTACT: Craig K. Murphy,
Director, Investor Relations of DCI Telecommunications, 203-380-0910,
Ext. 3108, or InvestorRelations@dcic.com/
/Company News On-Call: prnewswire.com or fax, 800-758-5804,
ext. 107358/
/Web site: dcic.com (DCTC)
CO: DCI Telecommunications, Inc.; TIMEWorldCom ST: Connecticut,
Florida, Maryland IN: TLS MLM SU: ERN JVN
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