Tuesday May 18, 12:46 pm Eastern Time
Company Press Release
SOURCE: DCI Telecommunications, Inc.
DCI to Offer Internet Service to Internet Service Providers in Spain
STRATFORD, Conn., May 18 /PRNewswire/ -- DCI Telecommunications, Inc.
(OTC Bulletin Board: DCTC - news) announced that its existing agreement
with Retevision, the national cable company of Spain, has been expanded
to enable DCI to provide ''bundled'' voice and data transmission
services throughout Spain. ''Bundled'' services include local and long
distance voice communication, as well as high speed data transmission
and Internet access at low cost.
This outgrowth will reinforce DCI's position as a low-cost data
transmitter. The agreement with Retevision marked DCI's entry as a
Competitive Local Exchange Carrier (CLEC) in Spain and gave DCI access
to a microwave relay network that covers all of Spain including the
Canary Islands and the Balearics. A fiber optic network also is being
built out which will provide backup and redundancy for the carriage of
traffic.
In addition to transmission offered to DCI's direct clients, the
company also will offer backbone services to other carriers that have
expressed interest in partitioning or co-locating at DCI's Madrid
facilities. The service to be offered to carriers will also include
data transmission capabilities. The company will provide interested
Internet service providers dial-up Internet access to the public.
The expansion of this agreement raises DCI's capabilities to a new
worldwide level. It is the first step in the segment of the company's
expansion plan calling for utilization of the Internet for global voice
and data transmission services. Spain is the first link in what is
planned to be a worldwide Internet based network, which will include
Virtual Private Networks capable of handling dedicated bandwidth to
maximize the quality of voice and data transmission.
IMPACT OF RESTATEMENTS
DCI recently restated three quarterly statements for the period ended
December 31, 1998 in response to the Securities and Exchange
Commission's (SEC) temporary suspension in the trading of its common
stock.
The financial statements were restated to reflect the acquisition of
Edge Communications under the purchase method of accounting rather than
as a pooling of interest. One effect of the change was the addition of
approximately $6.8 million of ''goodwill,'' which will be amortized as
a non-cash expense over 20 years. Revenues were reduced by $1,092,046
for the nine months ended December 31, 1998 and $4,844,211 for the nine
months ended December 31, 1997. Aside from a reduction of the gross
margin relating to the reduction in sales, there will be no other
effect on Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA) for the year ended March 31, 1999, which is a key
measurement factor in the telecom industry. This accounting change will
have no bearing on the company's current or future business activities.
Restated results for the nine months ended December 31, 1998 and 1997,
to account for the acquisition of Edge on April 30, 1998 using the
purchase method of accounting rather than the pooling of interest
method, and a preferred dividend recalculation, are as follows:
Nine Months Ending
December 31
(unaudited)
1998 1997
Revenue, as previously reported $28,106,330 $8,020,695
Adjustments for Edge (1,092,046) (4,844,211)
Restated revenue 27,014,284 3,176,484
Net income (loss) as
previously reported (2,827,954) 509,784
Net change in income
as a result of restatement, (367,548) (31,738)
Restated net income (loss) $(3,195,502) $478,046
Earnings (loss) per share
as previously reported, $(.13) $.04
Net change as a result
of restatement, (.02) .01
Restated net earnings
(loss) per share $(.15) $.05
Pursuant to Rule 15c2-11, under the Exchange Act, brokers and dealers
should be alert to the fact that, at the termination of the trading
suspension, no quotation may be entered unless and until they have
strictly complied with all of the provisions of the rule.
DCI Telecommunications is a global 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.
Additional information can be obtained directly from the company or its
web site at dcic.com.
Safe Harbor Statement under the Private Securities Litigation Act of
1995: The statements which are not historical facts contained in this
press release are forward-looking statements that involve certain risks
and uncertainties including but not limited to risks associated with
the new uncertainty of future financial results, additional financing
requirements, development of new products, regulatory approval
processes, the impact of competitive products or pricing,
unpredictability of patent protection, technological changes, the
effect of economic conditions and other uncertainties detailed in the
company's filings with the Securities and Exchange Commission.
SOURCE: DCI Telecommunications, Inc. |
