To: Logistics who wrote (68495 ) 4/14/1999 8:51:00 AM From: Manzanillo Respond to of 119973
Big news about CDO DSL services!! ============================================ INTERVIEW- Comdisco digital line business on track By Anna Driver CHICAGO, April 13 (Reuters) - Technology services provider Comdisco Inc. <CDO.N> on Tuesday reported that sales for its New-York-based digital subscriber line (DSL) business were ahead of schedule, which could signal a speedy national roll-out for the product. "In the next month or two, we will assess where we are and make a decision whether we roll out to the rest of the country right away, or take it slower," said Nicholas Pontikes, president and chief executive officer of the Rosemont, Ill.-based company. "But assuming we stay anywhere near the path where we are right now, that (a national roll-out) is the direction." In March, Comdisco purchased Prism Communications Services Inc., a provider of high-speed data access for small businesses in the New York Metropolitan area. Comdisco's Prism business has recently caught the eye of investors watching the soaring market capitalizations of other start-up DSL businesses. Partly as a result of the success on Wall Street of other DSL companies, Comdisco's stock has shot higher. On March 31, the stock closed at 17-4/16, while on Tuesday it notched a fresh 12-month high of 29-1/8, before closing at 28-5/16. Pontikes said Prism was at distinct advantage over other DSL start-ups because it would sell the service to its existing customers and could offer other Comdisco services like data recovery alongside high-speed Internet access. "Comdisco is going to be selling to our corporate customers in bulk for work-at-home solutions or remote access solutions," he said. "We can offer a total solution for our customers." Comdisco's near-term focus will remain on growing the DSL business, but Pontikes said financing for the DSL business could come eventually from an initial public offering or spin-off. Comdisco will say more about its plans for Prism after it releases second quarter earnings on April 27. Pontikes said the company's net earnings were on track with expectations. A consensus of analysts' estimates put Comdisco's second quarter earnings at $0.25 per share, according to First Call. Analysts and Pontikes also said Comdisco shares have been buoyed by the company's Web hosting potential as well as its decision to shed its less profitable mainframe leasing and medical equipment refurbishment businesses in March. 19:30 04-13-99