Coherent Communications Systems Corporation Announces 26% Increase in Earnings on 20% Sales Increase.LEESBURG, Va.--(BUSINESS WIRE)--July 16, 1996--Coherent Communications Systems Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CCSC CCSC Consortium for Computing in Small Colleges CCSC Cheung Chuk Shan College (Hong Kong) CCSC Chicagoland Construction Safety Council CCSC Cemetery Consumer Service Council CCSC Commercial Computer Security Centre ) today reported that net income for the second quarter of 1996 was $2,280,000 or $0.15 per share on sales of $13,165,000. Strong increases in sales of both transmission and teleconferencing equipment in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Asia-Pacific, and Latin America were partially offset by softness in Europe, when compared to the prior year's quarter. Daniel L. McGinnis, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. said: "Sales to the cellular industry in the United States were especially strong, as were sales to international long distance carriers in Japan and Latin America. The European softness in sales occurred principally within one large OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and customer that had begun an adjustment of its inventories late in the first quarter, which then continued throughout the second quarter. Sales to that customer are expected to resume in the third quarter." Some of the larger sales contributing to the second quarter's financial result were from shipments to Telmex, KDD KDD Knowledge Discovery and Data Mining (International Conference) KDD Knowledge Discovery in Databases KDD Kokusai Denshin Denwa (Japan) KDD Key Distribution Device , Embratel (through NEC (NEC Corporation, Tokyo, www.nec.com, www.necus.com) An electronics conglomerate known in the U.S. for its monitors. In Japan, it had the lion's share of the PC market until the late 1990s (see PC 98). NEC was founded in Tokyo in 1899 as Nippon Electric Company, Ltd. ) in the international carrier market segment; to AT&T Wireless, Omnipoint, and Geotek in the wireless market segment; and to Nokia, NEC Australia, Stratacom, Motorola, and Lucent in the OEM market segment. Also showing strength in the quarter were shipments of the Company's Call Port and Voicecrafter teleconferencing systems, particularly in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. market. Preparing for future growth, the Company opened customer assistance offices in Tokyo's Shinjuku sector and in Beijing, and has placed an executive in Singapore to open a permanent office in that city-state. New products completing successful Beta testing (programming) beta testing - Testing a pre-release (potentially unreliable) version of a piece of software by making it available to selected users. This term derives from early 1960s terminology for product cycle checkpoints, first used at IBM but later standard throughout the in the quarter included the Consortium teleconference bridge; CMOR CMOR Council for Marketing and Opinion Research , a network information and management software package that is used in conjunction with the Company's echo cancellers; and two OEM prototype products. Coherent Communications Systems Corporation is a worldwide leader in state of the art digital and acoustic echo cancellation technology, encompassing the full breadth of wireless, satellite and terrestrial networks. The Company's products are used globally by major commercial telecommunications companies and network operators, including AT&T Wireless, Cable and Wireless, Telmex, British Telecom, Duetsche Bundespost, KDD (Japan), and Embratel among the list of current customers. The Company also designs and manufactures a market leading range of high performance full duplex audio teleconferencing products. -0-
COHERENT COMMUNICATIONS SYSTEMS CORPORATION
(Amounts are in Thousands Except Earnings Per Share)
Three Months Ended Six Months Ended
June 30 June 30
1996 1995 1996 1995
REVENUES $13,165 $11,001 $24,274 $20,781 GROSS PROFIT $ 8,361 $ 6,701 $15,383 $12,666 PRE-TAX INCOME $ 3,560 $ 3,027 $ 6,889 $ 5,768 NET INCOME $ 2,280 $ 1,816 $ 4,398 $ 3,461 EARNINGS PER SHARE $ 0.15 $ 0.12 $ 0.28 $ 0.22 AVERAGE SHARES OUTSTANDING 15,478 15,549 15,466 15,394 Earnings per share calculations for each of the quarters are based on the weighted average number of shares outstanding in each period. The sum of the earnings per share calculations for the individual quarters is greater than the earnings per share calculation for the combined quarters. Also available via internet Web page: http//www.coherent.com CONTACT: Coherent Communications Systems Corporation Daniel L. McGinnis, CEO, 703/724-7300 or Michael P. Gendron, CFO See Chief Financial Officer. , 703/724-7364 |
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