Printer Friendly

DIGITAL COMMUNICATIONS TO SELL PRINTER PRODUCTS SUBSIDIARY

 ALPHARETTA, Ga., June 25 /PRNewswire/ -- Digital Communications Associates Inc. (DCA) (NYSE: DCA) today said it plans to sell its Pacific Data Products (PDP) printer products subsidiary and that it has engaged the investment banking firm of Unterberg Harris to solicit offers for the unit.
 DCA said San Diego-based PDP will incur an estimated loss of $12 million for the fourth quarter ending June 30. The estimated loss includes $7.7 million for adjustments to inventory and other asset valuations, provisions for potential liabilities and other operating losses, and $4.3 million for additional inventory, other asset valuation adjustments and estimated transaction costs in connection with the contemplated sale of PDP, estimates for PDP's future operating losses and a further reduction in PDP's workforce.
 Beginning late in its last fiscal year, DCA has reported that PDP's printer emulation and font products were experiencing a slowdown in sales as customers moved to the Microsoft Windows 3.1 operating environment which contains similar capabilities as PDP's products.
 In February 1993, DCA announced it had restructured PDP and wrote- off the remaining goodwill associated with the acquisition resulting in a total charge of $63.1 million to DCA's earnings for its third quarter ended March 31.
 For the first nine months of DCA's current fiscal year, PDP had revenues of $46.5 million and operating losses of $66.6 million, including the $63.1 million charge in February. After an intensive review of PDP's operations during the last 90 days, it was determined that the initial restructuring charge is inadequate to fairly state the net assets of the printer subsidiary at June 30.
 "In April, we said we were going to conduct a thorough review of PDP's operations to identify the most appropriate option to take regarding PDP," said C. "Garry" Betty, DCA's president and chief executive officer. "We believe today's actions will help to prevent further impact from PDP on DCA's overall business. We believe that PDP can be a profitable and viable business as a part of an organization that is more compatible with PDP in terms of products, markets and business strategy.
 "We are now concentrating our efforts on our communications business where we believe we have a strong market position that will enable us to better execute our communications products strategy and return our business to a more consistent level of financial performance."
 DCA said PDP employees affected by the restructuring have received a comprehensive separation package including severance pay and outplacement services.
 PDP manufactures printers and printer-related products including font, printer emulation and memory accessories for personal computer printers.
 Based 30 miles north of Atlanta, DCA designs, manufactures, markets and supports products worldwide that enhance the productivity of users of personal computers. DCA's fiscal year ends June 30.
 -0- 6/25/93
 /CONTACT: William B. Marks, 404-442-4520 or, home, 404-987-9565, or, beeper, 404-533-6140; Analysts contact: Kathleen J. Howard, 404-442-4268, both of Digital Communications Associates/
 (DCA)


CO: Digital Communications Associates Inc.; Pacific Data Products ST: Georgia, California IN: CPR SU:

BR-BN -- AT009 -- 5858 06/25/93 16:29 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 25, 1993
Words:509
Previous Article:ARK SYSTEMS INC. FILES OFFERING TO SELL 650,000 UNITS AT $7.50 PER UNIT
Next Article:BB&T PLANS INSURANCE MERGER WITH WALLACE AGENCY
Topics:


Related Articles
DCA'S PACIFIC DATA PRODUCTS ENTERS PRINTER/PLOTTER MARKET PDP Announces Low Cost, Large Format Inkjet Output Device
DIGITAL COMMUNICATIONS RESTRUCTURES PRINTER PRODUCTS UNIT
DCA PROVIDES INDICATION FOR THIRD FISCAL QUARTER
DCA REPORTS FOURTH QUARTER AND FISCAL YEAR RESULTS
Iris Graphics and CalComp Announce OEM Agreement New Initiative in Wide-Format Printing
Lexmark Introduces First 2-in-1 Printer to Offer Simple Digital Photography & General Purpose Printing.
computershopper.com Announces Online Best-Sellers of 1998.
Scanvec-Amiable Ships Software for ColorSpan DisplayMaker Series XII High-Speed Inkjet Printer.
Minolta and Axis Communications Announce Agreement to Provide Connectivity Solution Between IBM Host Computers and Minolta Digital Printers and...
Office Depot Stores to Carry OKI's Fast, Affordable Digital Color Printer; Affordable and Reliable Color OKI C5100n to Be Sold at Office Depot Stores...

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters