DSC reports 1996 fourth quarter and full-year results.DALLAS--(BUSINESS WIRE)--Jan. 23, 1997-- Quarterly orders and revenues reach all-time all-time adj. Exceeding all others up to the present time: an all-time speed skating record. all-time Adjective Informal high 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 Corporation announced today operating results for the fourth quarter and year ended Dec. 31, 1996. Revenue for the 1996 fourth quarter was $390.6 million, the highest in the company's history, an increase of $16.7 million from $373.9 million in the 1995 period. Net income for the 1996 fourth quarter was $17.5 million, or $0.15 per share, compared to $49.4 million, or $0.42 per share, in the same period of 1995. For the full year, revenue was $1,380.9 million compared to $1,422.0 million in 1995. Net income for 1996, excluding $96 million of special charges recorded in the 1996 third quarter, was $52.0 million, or $0.44 per share, compared to $192.7 million, or $1.63 per share, recorded in 1995. The special charges related to a reduction in the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of certain assets. Including the special charges, the company recorded a net loss of $7.6 million, or $0.06 per share, for 1996. Revenue growth in the 1996 fourth quarter was due to increased deliveries of access products and international transmission equipment. Deliveries of the industry-leading Litespan(R) products were up more than 13 percent in the fourth quarter compared to the 1995 fourth quarter. The company's Danish operation, which develops 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 and network management systems, saw deliveries increase more than 80 percent in the 1996 quarter from the preceding year's same period. 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. was $30.8 million in the 1996 fourth quarter, compared to $67.2 million in the same 1995 period. This reduction was due to a shift in the mix of products sold which lowered the gross margin to 38.5 percent compared to 46.8 percent in the 1995 fourth quarter. The reduced 1996 fourth quarter gross margin was due in large part to an overall decline in switch revenue as a percentage of total company revenue, from 43 percent in the 1995 fourth quarter to 38 percent in the most recent fourth quarter. The corresponding increase in lower margin access and transmission revenue likewise impacted the gross margin percentage in the quarterly comparisons. DSC chairman and chief executive officer, 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. , commented, "We are pleased to have finished 1996 with a strong fourth quarter revenue performance. Our record revenues during the quarter were largely due to increased demand for our Litespan-2000 digital loop carrier In telephone communications, a technology that increases the number of channels in the local loop by converting analog signals to digital and multiplexing them back to the end office. product and improved sales from our European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. optical transmission business. "Although the first three quarters in 1996 were disappointing, we ended the year with record quarterly revenues, orders and backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. . Improvement in our Danish operation's product sales was particularly heartening heart·en tr.v. heart·ened, heart·en·ing, heart·ens To give strength, courage, or hope to; encourage. See Synonyms at encourage. Adj. 1. . During 1996 it achieved sequential quarterly revenue gains, culminating with record quarterly revenue in the fourth quarter. "Looking forward, we see growing global opportunities and have positioned the company to take advantage of them. In 1997 we will continue to address these opportunities with new product introductions from our 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. and European operations complementing our existing portfolio of telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. solutions. We will also expand our global manufacturing presence. In 1996 we opened a new facility in Costa Rica Costa Rica (kŏs`tə rē`kə), officially Republic of Costa Rica, republic (2005 est. pop. 4,016,000), 19,575 sq mi (50,700 sq km), Central America. and plan to begin operations at still another location, in Ireland, during the current year. "We believe that our product and manufacturing expansion efforts position the company to take advantage of the increasing opportunities presented by the global deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. of the telecommunications markets and the increased demand from developing countries for advanced telecommunications services In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. . We are guardedly guard·ed adj. 1. Protected; defended. 2. Watched over; supervised. 3. Cautious; restrained: We view these changes with guarded optimism. optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op for 1997 and look forward to reporting on our progress." 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. Litespan-2000 is a registered trademark of DSC Communications Corporation. "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 the historical information contained herein, the matters discussed herein, including the matters relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future performance, are 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 are dependent upon a number of risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include the timely availability and acceptance of new products, the impact of competitive products and pricing, changes in market conditions, the impact of changes in regulation or technology, and the other risk factors identified in the company's S.E.C. filings. -0-
DSC COMMUNICATIONS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- -------------------
1996 1995 1996 1995
-------- -------- -------- -------
(unaudited)
Revenue $ 390,560 $ 373,891 $1,380,891 $1,422,018
Cost of revenue
Special charges related
to inventories and
associated assets -- -- 82,500 --
Other 240,358 198,794 843,247 736,119
---------- ---------- ---------- ----------
240,358 198,794 925,747 736,119
---------- ---------- ---------- ----------
Gross profit 150,202 175,097 455,144 685,899
---------- ---------- ---------- ----------
Operating costs and expenses:
Research and product
development 54,767 47,269 210,091 189,751
Selling, general and
administrative 62,147 57,809 233,576 207,188
Special charges for excess
facilities and equipment -- -- 13,500 --
Other operating costs 2,510 2,810 10,020 9,542
---------- ---------- ---------- ----------
Total operating costs
and expenses 119,424 107,888 467,187 406,481
---------- ---------- ---------- ----------
Operating income (loss) 30,778 67,209 (12,043) 279,418
Interest income 5,237 7,910 24,146 27,147
Interest expense (6,549) (6,994) (26,355) (18,599)
Other income (expense), net (1,163) 3,728 2,066 1,984
---------- ---------- ---------- ----------
Income (loss) before
income taxes 28,303 71,853 (12,186) 289,950
Income taxes 10,755 22,411 (4,631) 97,270
---------- ---------- ---------- ----------
Net income (loss) $ 17,548 $ 49,442 $ (7,555) $ 192,680
========== ========== ========== ==========
Income (loss) per share $ 0.15 $ 0.42 $ (0.06) $ 1.63
========== ========== ========== ==========
Average shares used in
computation 118,702 118,398 116,514 118,126
DSC COMMUNICATIONS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, December 31,
1996 1995
----------- ------------
Assets
Cash and cash equivalents $ 155,101 $ 258,565
Marketable securities 178,938 310,699
Receivables 411,947 277,006
Inventories 343,566 303,962
Other current assets 113,326 70,315
---------- ----------
Total current assets 1,202,878 1,220,547
---------- ----------
Property and equipment, net 403,596 370,522
Capitalized software development
costs 51,634 43,821
Cost in excess of net assets of
businesses acquired, net 146,025 155,102
Other assets 121,522 75,283
---------- ----------
Total assets $1,925,655 $1,865,275
========== ==========
Liabilities and Shareholders' Equity
Short-term debt $ 906 $ 83,438
Accounts payable and accrued
liabilities 398,944 365,046
Current portion of long-term debt 33,072 33,098
---------- ----------
Total current liabilities 432,922 481,582
---------- ----------
Long-term debt 274,602 210,441
Noncurrent liabilities 70,495 49,173
Shareholders' equity 1,147,636 1,124,079
---------- ----------
Total liabilities and
shareholders' equity $1,925,655 $1,865,275
========== ==========
CONTACT: DSC Communications Corp., Dallas Terry Adams
At Mary G. Montgomery High School he went 12-2 with a 1. , 972/519-4358 Michael Haase, 972/519-6855 |
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