DSC reports third quarter results.DALLAS--(BUSINESS WIRE)--Oct. 15, 1996--DSC Communications Corporation announced today its operating results for the third quarter and nine-month period ended Sept. 30, 1996. Revenue for the 1996 third quarter was $326.0 million compared to $370.1 million recorded in the third quarter of 1995. Special charges related to certain assets were recorded in the 1996 third quarter and totaled $96 million before income taxes, $60 million after taxes. The special charges contributed to a net loss for the third quarter of $57.9 million, or $0.49 per share. Excluding the effects of the special charges, the company would have recorded net income for the quarter totaling $1.6 million, or $0.01 per share, compared to $49.4 million, or $0.42 per share, for the 1995 third quarter. For the nine months ended Sept. 30, 1996, the company recorded revenue of $990.3 million and a net loss of $25.1 million, or $0.22 per share, compared to revenue of $1,048.1 million and net income of $143.2 million, or $1.21 per share, for the first nine months of 1995. The company's net income excluding the effects of the special charges would have been $34.4 million, or $0.29 per share, for the nine months ended Sept. 30, 1996. The revenue decline in the 1996 third quarter was due primarily to reduced deliveries of the company's more mature products, including optical access systems and transmission equipment. The company believes that sales of these products were negatively impacted by pending FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. rulemaking In administrative law, rulemaking refers to the process that executive agencies use to create, or promulgate, regulations. In general, legislatures first set broad policy mandates by passing laws, then agencies create more detailed regulations through rulemaking. procedures, associated court challenges of the recent telecom legislation and by mergers and consolidations among the company's customer base. In addition, the complexity of some of the company's newer products has slowed their network implementation. The special charges of $96 million recorded in the third quarter of 1996 included provisions for inventories, deferred development costs and associated assets of $82.5 million and $13.5 million related primarily to excess facilities and equipment. Gross margin before the effects of the special charges for the 1996 third quarter was 34 percent of revenue, compared to 47 percent in the same period of 1995. Gross margin was negatively impacted by a shift in the mix of productss sold and lower than anticipated total revenue. 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. 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, "Our level of performance in the recent quarter was not acceptable. While there were numerous reasons that combined to negatively impact our business, the fact remains that the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. marketplace is a rapidly growing one. "We have made changes that will enhance our ability to share in this market growth, in keeping with our position as a leader in product innovation and market competitiveness. At the same time, we are continuing to maximize In a graphical environment, to enlarge a window to the full size of the screen. See Win Maximize windows. our cost-reduction efforts while not jeopardizing our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. objectives. "Over the years, we have aggressively pursued development efforts that best enable the company to take advantage of the significant market opportunities within our industry. We have consciously chosen to invest in technologies which can bring maximum value to our shareholders over the long term. "The success of this strategy is evident in the long-term growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. associated with the company's revenue and profitability, both in excess of 30 percent compounded annually, on average, from 1982 through 1995. Our long-term growth shows that our strategy of targeting leadership positions in high-growth segments of the telecommunications market is a correct one." Donald concluded by stating, "The fundamentals of the company and its markets are both sound and excellent. We expect our performance to be consistent with our opportunities, based on our products and organizational directions." 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. -0- "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. 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 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" or to reflect the occurrence of unanticipated events. -0-
DSC COMMUNICATIONS CORPORATION
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
------------------- ---------------------
1996 1995 1996 1995
-------- -------- -------- ----------
Revenue $326,003 $370,119 $990,331 $1,048,127
Cost of revenue
Special charges related
to inventories and
associated assets 82,500 -- 82,500 --
Other 215,046 195,713 602,889 537,325
-------- -------- -------- ---------
297,546 195,713 685,389 537,325
-------- -------- -------- ---------
Gross profit 28,457 174,406 304,942 510,802
-------- -------- -------- ---------
Operating costs and expenses:
Research and product
development 49,705 47,597 155,324 142,482
Selling, general and
administrative 57,927 52,552 171,429 149,379
Special charges for
excess facilities and
equipment 13,500 -- 13,500 --
Other operating costs 2,464 2,320 7,510 6,732
-------- -------- -------- ---------
Total operating costs
and expenses 123,596 102,469 347,763 298,593
-------- -------- -------- ---------
Operating income (loss) (95,139) 71,937 (42,821) 212,209
Interest and other income 8,282 8,022 22,138 17,493
Interest expense (6,514) (6,278) (19,806) (11,605)
-------- -------- -------- ---------
Income (loss) before
income taxes (93,371) 73,681 (40,489) 218,097
Income taxes (35,481) 24,314 (15,386) 74,859
-------- -------- -------- ---------
Net income (loss) $(57,890) $ 49,367 $(25,103) $ 143,238
-------- -------- -------- ---------
-------- -------- -------- ---------
Income (loss) per share $ (0.49) $ 0.42 $ (0.22) $ 1.21
-------- -------- -------- ---------
-------- -------- -------- ---------
Average shares used in
computation 116,964 118,668 116,269 117,946
DSC COMMUNICATIONS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
Sept. 30, Dec. 31,
1996 1995
---------- ----------
(unaudited)
Assets
Cash and cash equivalents $ 133,654 $ 258,565
Marketable securities 286,803 310,699
Receivables 337,559 277,006
Inventories 329,169 303,962
Other current assets 136,897 70,315
---------- ----------
Total current assets 1,224,082 1,220,547
---------- ----------
Property and equipment, net 398,798 370,522
Capitalized software development costs 48,297 43,821
Cost in excess of net assets of
businesses acquired, net 148,256 155,102
Other assets 103,186 75,283
---------- ----------
Total assets $1,922,619 $1,865,275
---------- ----------
---------- ----------
Liabilities and Shareholders' Equity
Short-term debt $ 39,446 $ 83,438
Accounts payable and accrued
liabilities 380,921 365,046
Current portion of long-term debt 32,937 33,098
---------- ----------
Total current liabilities 453,304 481,582
---------- ----------
Long-term debt 276,036 210,441
Noncurrent liabilities 75,890 49,173
Shareholders' equity 1,117,389 1,124,079
---------- ----------
Total liabilities and
shareholders' equity $1,922,619 $1,865,275
---------- ----------
---------- ----------
CONTACT: DSC Communications Corp., Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. Terry Adams
At Mary G. Montgomery High School he went 12-2 with a 1. , 972/519-4358 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:
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