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

To: Ed Pettee who wrote (12383)	12/8/1998 7:41:00 AM
From: Bruce Galpeer	Respond to of 19331

Ed, I would call it an alliance myself as they have taken a stake in our company. As far as the answer to the question of being profitable that was when the noise started so I also did not hear a clear answer. It looks as if the story is in todays WSJ. Does anybody have access to a Journal? LONG AND STRONG!!! GO DCTC!!!! Bruce EDIT Found it... Yesterday 12/7/98 IXC to Post Charge of $14 Million After Customer Defaults on Bills Dow Jones Newswires AUSTIN, Texas -- IXC Communications Inc. said Monday it will post a fourth-quarter pretax charge of $14 million after it canceled $18 million in payments owed it by a defaulting customer. IXC, a long-distance network carrier, said it would shift management control of the defaulting debit-card customer to DCI Telecommunications Inc. Under the agreement, IXC will buy $16 million in DCI stock, and DCI will assume the debt owed by the IXC customer. IXC's purchase of DCI stock is for about 4.25 million shares, based on Friday's closing price, or about a 13% ownership position. IXC has already taken reserves to provide for the defaulting customer, which it didn't identify. The $14 million charge will be in addition to those amounts. IXC said the customer default shouldn't indicate any recurring reduction in operating results. DCI Telecom has a call option to repurchase its 4.25 million shares through April 1 for $18 million. If the company doesn't excercies those options, IXC will adjust the number of DCI shares it owns on June 1 if the average price falls outside a certain range. After any adjustments, IXC will own DCI shares with a minimum value of about $18 million and a maximum value of $22 million. DCI also signed a five-year commitment to buy domestic and international telecommunication services from IXC. IXC will provide services throughout Spain, England, Canada, Mexico and the Far East. Last month, IXC warned that fourth-quarter results would be below expectations, coming in at a loss of about $1.28 to $1.30 a share. A year ago, the company had a net loss of $19.1 million, or 99 cents a share. The mean estimate of analysts surveyed by First Call was for a loss of 90 cents a share, but that was revised to a loss of $1.22 a share.

To: Ed Pettee who wrote (12383)	12/8/1998 7:56:00 AM
From: Bruce Galpeer	Read Replies (1) \| Respond to of 19331

Today's WSJ... Dci Telecommunications Inc. The Wall Street Journal -- December 8, 1998 Business Brief -- IXC COMMUNICATIONS INC.: DCI Pact, One-Time Charge Take Care of Customer Debt IXC Communications Inc. said it will take a one-time charge of about $14 million in the fourth quarter to resolve a debt owed by one of its customers. The Austin, Texas, telecommunications concern said that DCI Telecommunications Inc. of Stratford, Conn., assumed management control of the unnamed customer. IXC said it agreed to accept 4.25 million shares of DCI, valued at about $16 million, in exchange for the debt. Under the agreement, DCI, an international provider of telephone services, can repurchase its shares, equal to about a 13% stake, through April 1 at a price of about $18 million. If the shares aren't repurchased, the number of shares IXC owns will be adjusted to have a value of at least $18 million. IXC said it also will provide services to DCI, which will give it a new business opportunity.