Chris,
I haven't been tracking APCO for a while. I'll have to change that. Today looks like an overall buying opportunity will present itself. Probably at around Dow 7725. AND...more IFCI news...
International FiberCom Inc. Completes Acquisition of a Mid-Atlantic-Based Telecommunications Equipment Co
PHOENIX--(BUSINESS WIRE)--Oct. 1, 1998--
Diversitec Inc. Recorded $6.7 Million In Sales In The First Six
Months of '98
International FiberCom Inc. (NASDAQ:IFCI)(PHLX:IFC) and its Chairman and Chief Executive Officer, Joseph P. Kealy, Thursday announced it has completed the acquisition of Diversitec Inc., a Virginia-based telecommunications equipment company,for 1,752,000 restricted shares of common stock of the company.
The transaction will be accounted for as a pooling of interests and is effective as of Sept. 1, 1998.
Diversitec, buys, sells, assembles and repairs the digital plug-in switching circuit boards and systems used in the Central Offices of the Regional Bell Operating Companies (RBOC's), independent telephone companies and Competitive Local Exchange Carriers (CLEC's).
The company is a value-added reseller of Lucent Technologies' central office telecommunications equipment. It will be integrated with and operate as a unit within IFCI's Telecommunications Equipment Group. Diversitec's key employees have executed employment agreements with the company.
The acquisition of Diversitec is expected to be significantly accretive to IFCI's earnings per share ("EPS") for both the third and fourth quarters and the first nine months ending Sept. 30, 1998, before any one-time, nonrecurring, nonoperating charges for pooling costs.
On a preliminary, unaudited basis, Diversitec reported sales of approximately $6,763,000 for the six months ended June 30, 1998 and was profitable. In 1997, Diversitec generated sales of approximately $12,600,000 and was profitable.
IFCI expects to take a one-time nonrecurring, nonoperating charge for pooling costs in the third quarter of approximately $700,000 relating to the acquisition of Diversitec and United Tech, including a finder's fee of $523,000 on the Diversitec acquisition. This one-time pooling charge is expected to be fully offset by increased operating income in the third quarter from Diversitec and United Tech. IFCI completed and announced the acquisition of United Tech in September.
Kealy stated, "Diversitec, coupled with our previously acquired Southern Communications and United Tech subsidiaries, puts our Telecommunications Equipment Group at a very profitable, annualized revenue run-rate of approximately $40 million. IFCI is now one of the nation's premier players in the niche secondary telecommunications equipment sector.
"This industry sector is highly fragmented with no dominant companies and we believe we have the opportunity to continue to consolidate it through acquisitions and realize significant synergies, economies of scale and cross-selling opportunities."
Also, IFCI announced that it has suspended acquisition discussions with two midwestern sister telecommunications equipment companies because no definitive agreement has been reached. It is possible that discussions regarding this acquisition may resume at some future point.
Kealy will be presenting to a number of institutional investment professionals at the Emerging Telecommunications Markets Industry Conference at the New York Marriott Marquis in New York City organized by Kaufman Brothers, LP. Kealy will be the initial speaker at the Conference, presenting at 8:15 EST on Monday, Oct. 5, 1998.
International FiberCom is a fully integrated "one stop shopping" outsource provider for the telecom and CATV industries. Through its six subsidiaries, IFCI provides a range of high level engineering, broadband network systems design, installation of structured cable and fiber-optic networks and complete telecommunications systems integration services with LAN's and WAN's expertise.
Its Kleven Communications and Riley Communications subsidiaries specialize in the design, installation and maintenance of fiber-optic and other cable services for the telecommunications and cable industries.
Its Tennessee based subsidiary, Concepts In Communications, provides systems integration services including design, engineering, installation and maintenance of structured cable systems, network hardware and software, workstation peripherals and intercommunications systems.
Concepts maintains value added reseller and/or partner agreements with Lucent Technologies, 3Com, Bay Networks, Novell, WIN Communications, BellSouth, Compaq and Hewlett Packard.
Its telecommunications engineering subsidiary, Compass Communications, specializes in designing broadband video, voice and data networks systems. And its Southern Communications Products, United Tech and Diversitec subsidiaries are leaders in the fast growing niche secondary telecommunications equipment sector.
Note to Editors: This press release contains "forward-looking statements" which are based largely on the company's expectations and are subject to various business risks and uncertainties, certain of which are beyond the company's control. These forward-looking statements are intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995.
Actual results could differ materially from these forward-looking statements as a result of such risks. In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained herein will in fact transpire or prove to be accurate.
A more complete listing of cautionary statements and risk factors is contained in the company's reports filed on Form 10-KSB and Form 10-QSB with the Securities and Exchange Commission. The company makes no commitment to disclose any revisions to forward-looking statements, or any facts, events or circumstances after the date hereof that bear upon forward-looking statements.
CONTACT:
International FiberCom Inc., Phoenix
Joseph P. Kealy, 602/941-1900
or
Liviakis Financial Communications Inc.
Robert Prag 916/448-6084 |
