DSC to report lower-than-expected third quarter results.DALLAS--(BUSINESS WIRE)--Oct. 2, 1996--DSC Communications Corporation announced today that, based upon preliminary estimates, revenue and earnings for the third quarter ending Sept. 30, 1996 are expected to be lower than analyst estimates. Total revenue for the third quarter is anticipated to be between $325 and $335 million, with gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. percentage in the low 30s range. Third quarter earnings are expected to be approximately break-even, before a special charge of approximately $96 million, or $60 million after tax. 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 L. Donald, commented, "This quarter's financial performance has been an obvious disappointment. Third quarter bookings and shipments were more back-end loaded Back-End Load A fee an investor pays when selling a mutual fund within a certain number of years, usually seven. Notes: Sometimes in exchange for paying no fees up front, the investor pays an annual fee for marketing and managing that is higher than the fees charged for a than normal, and we attempted to work through this issue right up to quarter-end. "Specifically, deliveries of more mature products, including cellular switching equipment and optical access systems were negatively impacted by delays in customer decisions regarding digital radio for cellular and broadband applications for access. We believe this situation was further exacerbated 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 procedures, associated court challenges of the recent telecom legislation, and by mergers and consolidations among our customer base. "In addition, the ramping of new product deliveries did not occur at the rate anticipated as a result of delays in volume shipments of these new products. These products include Airspan(TM), a fixed wireless loop solution; Litespan(R)-120, an international loop access product; and iMTN(R), 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 . "Going forward, we will address wireless access applications such as ISDN ISDN in full Integrated Services Digital Network Digital telecommunications network that operates over standard copper telephone wires or other media. , 64Kb data or voice, along with continued emphasis on the high-density voice opportunities in a variety of spectrums. This will position DSC to offer faster implementation of its technology into more markets, rather than principally in the 2.0-2.3 GHz range. The Litespan-120 product development activities are being incorporated into the Airspan program. We will also refine the market objectives for iMTN, concentrating on its broadband digital cross-connect applications domestically and internationally. These actions, associated with Airspan, Litespan-120 and iMTN, will result in the special charge, primarily for inventory and related assets. "As we look forward to the remainder of 1996 and into 1997, we are cautious regarding our expected level of performance. Recognizing this, we will adopt a cost structure designed to allow the company to return to acceptable levels of profitability, while balancing the need to meet long-term objectives. "We have restructured the management within the company so as to fully realize the company's technology potential. This restructuring entails the establishment of an international group, to be led by Philip A. Wilkinson, senior vice president. Wilkinson will be responsible for all of the company's international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. , including sales, service, marketing and product development. The company's North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Sales and Service organization will be led by Douglas K. Jacobs, vice president; Switch Systems Group by Wylie D. Basham, senior vice president; and Transport and Access Systems Group by David L. Hinshaw, vice president. Each of these individuals was promoted from within DSC." A conference call to discuss this preliminary announcement of third quarter 1996 results is scheduled for today, Oct. 2, at 12:00 p.m. Central Time. To access this call, dial 312/864-5011 at least 15 minutes prior to start time to assure a timely connection. A rebroadcast of the conference call will be available all day today and Thursday, Oct. 3. To access the rebroadcast, dial 1-800-925-1782. Final results of the third quarter will be reported on Oct. 15 after market close. 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. iMTN and Litespan are registered trademarks of DSC Communications Corporation. Airspan is a 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 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 after the date hereof or to reflect the occurrence of unanticipated events. CONTACT: DSC Communications Corporation, Dallas Terry Adams
At Mary G. Montgomery High School he went 12-2 with a 1. , 972/519-4358 or Michael Haase, 972/519-6855 http://www.dsccc.com. |
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