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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today -- Ignore unavailable to you. Want to Upgrade?

To: Ken Salaets who wrote (7393)	8/1/1998 6:10:00 PM
From: LT	Read Replies (3) \| Respond to of 19331

Hello Ken and Everyone, Well, I relented and went to the meeting. I want to express my pleasure at meeting everyone that was there and getting to put a name and face together. Maybe when this is all over, we will all be able to get together...... Here's my take on some of the goings on.........I spent my time after the meeting talking to Mr. Adams who is spearheading the European operations...... DCI has been pouring $$$ into Europe this past Q which accounts for the eps situation. The reason for that became obviously clear when the TIMEWorld deal was announced. Although we get 51% of that deal, 51% of 100mil is pretty substantial when yo consider they are also putting up 10mil cash for us. Mr. Adams also felt that the 100mil one contract company would have others in place by the end of the year. They have also agreed to be non-competitive in Europe so all their efforts go towards our deal. They also demanded the right of first refusal as they know this company is on the shopping blocks. They need our structure over there so the things DCI is doing in Europe must be on target. He did say that getting work done over there was like pulling teeth. Someone is always "not working due to a country holiday" all the time so everything has taken longer than he would have hoped. He also said we are working diligently towards obtaining landing rights with other countries as we need those agreements before we can join the FLAG network. FLAG is the Fiberoptic Links Around the Globe network that could be largest....... Info on Cyberfax......there are currently only 14 installations around the globe and they would like installations in 25 different countries before everything falls into place for serious revs to begin. The global standards for internet protocol are still being developed so we are not falling behind the competition. In fact, Mr. MacTaggart is on the developmental board for protocol standards so that should give us a leg up. Has Cyberfax been a cash drain with little rev? YES but that will change later this year. Keep in mind there have been many problems with the installation and hardware manufacturer but those are being corrected and things will be better in the long run because of it. EDGE and Locus both target ethnic markets and have tremendous synergy. Locus is already at capacity again and is expanding as planned. This expansion also costs $$$ but is worth is. The Gross Margins are currently only 12% but when they are fully onboard, DCI should be able to pick up .01 to .02 per minute extra because of the volume being generated. Cutting our costs by that much is staggering so we shall see.......Locus also sold every pre-paid cellular unit we sent them in almost no time. This is another area that could increase their rev base from what is currently running at 50mil per year....... This is my assumption only......Locus could be running at a rate of 75 mil per year after their next round of expansion......Edge is also growing at a phenominal rate and could be running at a run rate of 40 mil by the end of the year........Keep all this in mind when you focus on the fact that DCI is an M&A company being built to be sold. I hope this is of some help... Lou