Communications World International announces acquisition of Digital Telecom Inc.DENVER--(BUSINESS WIRE)--Nov. 2, 1994--Communications World International, Inc. (CommWorld) (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 :CWII), a provider of telecommunications systems, peripherals and services, Wednesday announced it has acquired Denver-based Digital Telecom, Inc. (DTI Diffusion tensor imaging (DTI) A refinement of magnetic resonance imaging that allows the doctor to measure the flow of water and track the pathways of white matter in the brain. ), a provider of telecommunications equipment and services to corporate customers with a national presence. Under terms of the agreement, the purchase price of DTI was $595,000, which consisted primarily of common stock, convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". and notes payable. In addition, the contract includes an earnout provision that could increase or decrease the acquisition price by $137,500 based on performance through April 30, 1995. For the year ended December 31, 1993, DTI reported net income of $46,219 on net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $999,877, and for the nine-month period ended September 30, 1994, the company reported net income of $38,986 on net sales of $984,097. "We are extremely pleased to announce the completion of the Digital Telecom acquisition," said Richard Olson, president. "Since its inception in 1990, DTI has built a strong, corporate customer base and the infrastructure necessary to support it." He added that with the resources of DTI, CommWorld's ability to develop and service national accounts, both in- house and through its franchise network, will be greatly enhanced. Olson also noted that the acquisition of DTI is expected to result in greater product buying power Buying Power The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available. Also referred to as "Excess Equity. for CommWorld. DTI's customers include Office Max, Pet Stuff, Polo Retail Outlets and Southern Stores, which owns and operates 42 Blockbuster Video locations. CommWorld provides telecommunication systems, peripherals and services to more than 50,000 businesses through a nationwide network of 60 franchise dealers, a national accounts division and four Company-owned locations. The Company is positioning itself in the open market between AT&T and the Bell operating companies operating company A business that engages in transactions with outsiders. on one end and the more than 10,000 small interconnect product providers across the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. on the other. CONTACT: Communications World International Inc., Denver
Richard Olson, 303/721-8200
by
Pfeiffer Public Relations Inc., Denver
Lillian Crippen, 303/393-7044
or
Investor Relations Contact: Lee Skoblow, 212/338-0610
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