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

To: Dorine Essey who wrote (13824)	2/2/1999 12:20:00 PM
From: Bruce Galpeer	Read Replies (1) \| Respond to of 19331

News... (PR Wires) DJ: DCI to Expand Network Capacity DJ: DCI to Expand Network Capacity STRATFORD, Conn., Feb. 2 /PRNewswire/ -- DCI Telecommunications (OTC Bulletin Board: DCTC), a provider of international telecommunications, announced today that it expects to finalize on a financing option this week enabling the Company to increase the capacity of its European network and establish its first company-owned gateway in the United States, by deploying three additional switches. Management has been evaluating various financing proposals, and is in the process of completing the most attractive option. The switches will be installed within 30 days of receipt of the funds. Current plans call for these large capacity, "state-of-the-art" switches to be installed in Madrid, London, and New York. Combined with its access to IXC-owned lines, a result of the recently announced master service agreement with IXC Communications (Nasdaq: IIXC), these switches will form the backbone of DCI's Trans-Atlantic network. This expansion plan is a result of the existing demand for DCI's services, as evidenced by certain existing switches reaching capacity. Once installed these three switches will initially generate approximately 15 million minutes per month. The Company recently reported it expects record breaking sales for the quarter ended December 31, 1998. Sales for this period would have been higher, if not for a temporary interruption in carrier services to Edge Communications. Edge will be contributing to the increase in the volume of minutes as it has commenced traffic under the terms set forth in the master service agreement with IXC. It is anticipated that Edge will shortly surpass the previous weekly run rate of $1.6 million. DCI expects to exceed its earlier forecast which called for consolidated sales between $40 to $50 million in the current fiscal year. As reported in October 1998, the Company will be filing a revised Form 10K for the years ended March 31, 1998 and 1997 which will reflect adjustments relating to the timing of the CardCall International and Muller Media acquisitions, and to reflect the Travel Source acquisition under the purchase method of accounting. Sales as previously reported in 1998 and 1997 were reduced by $3,628,326 and $1,939,891. Net income previously reported in 1998 was $204,227 ($.02 per share) and a loss in 1997 of $183,287 ($.04 per share). Those numbers will be revised to $116,158 ($.01 per share) profit in 1998 and to a $579,357 ($.12 per share) loss in 1997. However, the adjustments for those years do not reflect the inclusion of $8.7 million and $1.1 million in sales respectively for Edge Communications. The acquisition of Edge occurred in April 1998 in a stock swap transaction valued at $8 million which has been accounted for on a pooling of interest basis. DCI Telecommunications is an international provider of telecommunications services, including long distance, prepaid phone cards and Internet services. It has an extensive distribution network throughout North America, Europe and the Far East. The Company owns and operates switching facilities in Canada, the United Kingdom, Spain and Denmark, with facilities planned for the United States in the near future. There are currently 10 operating facilities worldwide, serving customers in eight countries. DCI recently reported sales of $17.1 million for the six months ending September 30, 1998 versus $5.8 million in the comparable prior-year period. These figures already account for the aforementioned adjustments. DCI recently announced a planned merger with Wavetech International (Nasdaq: ITELD) which is expected to take place in late February or early March, 1999. DCI is a publicly traded company listed on the OTC Bulletin Board under the symbol DCTC and its web site can be found at www.dcic.com. Joseph Murphy, president & CEO, stated that while this release is significant, it does not constitute an end to the quiet period announced by the Company on December 18, 1998. /CONTACT: Craig K. Murphy Director, Investor Relations, DCI Telecommunications, Inc., 202-380-0910, Ext. 3108, or InvestorRelations@dcic.com/ 12:01 EST * end of story *