DSC REPORTS FIRST QUARTER RESULTS.DALLAS--(BUSINESS WIRE)-- April 17, 1996--DSC Communications Corporation announced today first quarter 1996 operating results. Revenue for the period ended March 31, 1996 was $307.9 million with net income of $11.5 million, or $0.10 per share. The results compared to revenue of $318.0 million with net income of $41.9 million, or $0.36 per share, in the first quarter of 1995. Compared to the same period last year, the revenue decline in the first quarter of 1996 was primarily due to a slower European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. transmission business and lower deliveries of the company's international switching products, offset partially by increased deliveries of the company's access products. Gross margin for the first quarter of 1996 was 42 percent of revenue, compared to 50 percent in the same period of 1995. Gross margin was negatively impacted by lower sales volumes and a change in product mix, including reduced software content. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. in the first quarter of 1996 was $18.0 million, compared to $63.5 million in the 1995 first quarter. The combination of lower gross profit and an increase in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. negatively impacted operating income. Operating expenses in 1996 grew in support of the company's product development projects, expansion of international business activities and higher legal costs. James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. L. Donald Donald (Domnall, Domhnall, Dumhnuil, Dónall) is an anglicized version of a Scottish or Irish Gaelic personal name, containing the elements dumno "world" and val "rule", viz. "ruler of the world". Compare Dumnorix. , chairman and chief executive officer, commented, "As we entered 1996, we were cautious about expectations of DSC's performance during this year's first half. Our concern centered around a slower European transmission business, slowness in ramping of new product deliveries and an overall softness in deliveries to the international marketplace. "We believe these issues are transitional and are being successfully addressed. The investment in our European optical transport business, DSC (1) (Digital Signal Controller) A microcontroller and DSP combined on the same chip. It adds the interrupt-driven capabilities normally associated with a microcontroller to a DSP, which typically functions as a continuous process. See microcontroller and DSP. Communications A/S, while slower to develop than initially anticipated, is solid, with improved results anticipated for the 1996 second half. This improvement will be driven in large part by stronger international deliveries of new products and systems, such as the high-end high-end adj. Informal 1. Appealing to sophisticated and discerning customers: a high-end department store; high-end video equipment. 2. optical transport elements manufactured by our Danish subsidiary. In addition, we expect to begin ramping deliveries of a variety of other new products, including a fixed wireless loop solution, an international loop access product, and a next generation digital cross-connect A network device used by telecom carriers and large enterprises to switch and multiplex low-speed voice and data signals onto high-speed lines and vice versa. It is typically used to aggregate several T1 lines into a higher-speed electrical or optical line as well as to distribute signals . "While we are cautious nearer-term, we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our longer-term prospects and our overall positioning within the global telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industry," said Donald. DSC Communications Corporation is a leading designer, developer, manufacturer and marketer of digital switching, transmission, access and private network system products for the worldwide telecommunications marketplace. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Except for historical information contained in this release, the preceding contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve potential risks and uncertainties. The company's actual results could differ materially from those discussed in this press release. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . The company undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof or to reflect the occurrence of unanticipated events. -0-
DSC COMMUNICATIONS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended
March 31,
-------------------
1996 1995
-------- --------
(unaudited)
Revenue $307,897 $317,997
Cost of revenue 178,431 159,327
-------- --------
Gross profit 129,466 158,670
-------- --------
Operating costs and expenses:
Research and product
development 53,145 46,939
Selling, general and
administrative 55,779 46,101
Other operating costs 2,582 2,155
-------- --------
Total operating costs
and expenses 111,506 95,195
-------- --------
Operating income 17,960 63,475
Interest income 7,026 3,919
Interest expense (7,086) (1,031)
Other income (expense), net 689 (1,877)
-------- --------
Income before income taxes 18,589 64,486
Income taxes 7,064 22,570
-------- --------
Net income $ 11,525 $ 41,916
======== ========
Income per share $ 0.10 $ 0.36
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Average shares used in
computation 118,353 117,684
DSC COMMUNICATIONS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, Dec. 31,
1996 1995
---------- ----------
(unaudited)
Assets
Cash and cash equivalents $ 228,414 $ 258,565
Marketable securities 303,191 310,699
Receivables 239,136 277,006
Inventories 328,035 303,962
Other current assets 74,463 70,315
---------- ----------
Total current assets 1,173,239 1,220,547
---------- ----------
Property and equipment, net 383,909 370,522
Capitalized software development costs 46,509 43,821
Cost in excess of net assets of
businesses acquired, net 152,778 155,102
Other assets 87,344 75,283
---------- ----------
Total assets $1,843,779 $1,865,275
========== ==========
Liabilities and Shareholders' Equity
Short-term debt $ 92,213 $ 83,438
Accounts payable and accrued
liabilities 321,463 365,046
Current portion of long-term debt 33,163 33,098
---------- ----------
Total current liabilities 446,839 481,582
---------- ----------
Long-term debt 209,738 210,441 Noncurrent liabilities 50,201 49,173
Shareholders' equity 1,137,001 1,124,079
---------- ----------
Total liabilities and
shareholders' equity $1,843,779 $1,865,275
========== ==========
CONTACT: Terry Adams
At Mary G. Montgomery High School he went 12-2 with a 1. , 214/519-4358 or Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. Haase Haase may refer to:
both of DSC Communications Corporation |
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