Printer Friendly


 PARAMUS, N.J., Nov. 23 /PRNewswire/ -- The LuxCel Group, Inc. (NASDAQ: LXCL), a wireless communications equipment and service company, today reported results for the first quarter ended Sept. 30, 1993.
 Revenues declined as a result of the termination of the company's New York cellular agency business, to $575,000 from $2,269,000 in the comparable period of 1992, and the loss from operations was $706,000, or 17 cents per share, vs. income of $96,000, or 4 cents per share, in the year-ago period. Net loss was $610,000, or 15 cents per share, as compared to $81,000, or 4 cents per share, in the first quarter of fiscal 1993.
 Included in the current year's first quarter net loss was an extraordinary gain of $254,000, or 6 cents per share, from the settlement of certain debt of a subsidiary at below the face amount of the debt. Included in the prior year's first quarter earnings was a gain of approximately $306,000, or 13 cents per share, from the sale of the company's New York cellular telephone agency operations effective Sept. 30, 1992.
 Lee R. Montellaro, chief executive officer of the company, stated that "our transformation from a cellular agent to a paging company in fiscal 1993 negatively impacted revenues and results of operations. However, being a cellular agent held limited potential for the company. Commissions were being substantially reduced and we found increased competition from the carrier we represented in the New York area. Management took the decisive action to refocus the company's activities. We believe the start-up paging efforts in Poland and Central Eurasia, as well as in the United States, while producing near-term losses, will bear fruit in the years to come. On a positive note, this first quarter of fiscal 1994 showed marked improvement in gross profit dollars and percentages from that reported in the last quarter of fiscal 1993 as well as reductions in general and administrative expenses from that reported in the last quarter."
 Montellaro continued, "the recent successful public offering will enable LuxCel to expand its paging ventures in Eastern Europe and Central Eurasia, continue the expansion of its United States paging efforts and allow us to repay substantially all of our debt. At Sept. 30, 1993, the company's shareholders' equity exceeded $3 million. "LuxCel and its partners have already established an important presence in our target overseas markets, and we are positioned to extend our reach significantly over the coming months."
 The LuxCel Group has been distributing and marketing wireless communications electronics services and products in the United States and abroad for nine years.
 Financial Highlights (Unaudited)
 For the three months
 ended Sept. 30, 1993 1992
 Total revenue $575,000 $2,269,000
 Income (loss) from
 operations (706,000) 96,000
 Equity in net loss
 of joint ventures (158,000) (15,000)
 Extraordinary gain(A) 254,000 --
 Net income (loss) (610,000) 81,000
 Per share:
 Income (loss) from
 operations $(.17) $.04
 Equity in net loss
 of joint ventures (.04) --
 Extraordinary gain(A) .06 --
 Net income (loss) $(.15) $.04
 Average shares and equivalents 4,173,000 2,279,000
 (A) -- Results from the settlement of certain subsidiary debt at below the face amount of the debt.
 -0- 11/23/93
 /CONTACT: Lee R. Montellaro of the LuxCel Group, 201-843-6400 ext. 206/

CO: LuxCel Group ST: New Jersey IN: TLS SU: ERN

LG-TW -- NY036 -- 7224 11/23/93 11:19 EST
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:Nov 23, 1993

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