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OCOM CORPORATION ANNOUNCES OPERATING RESULTS FOR THE THIRD QUARTER 1992

 OCOM CORPORATION ANNOUNCES
 OPERATING RESULTS FOR THE THIRD QUARTER 1992
 NEW YORK, Nov. 13 /PRNewswire/ -- Ocom Corporation (NASDAQ: OHCO) ("OCOM") announced today its operating results for the three and nine months ended Sept. 30, 1992.
 OCOM CORPORATION
 (In thousands, except per share data)
 Periods Ended Sept. 30 Three Months
 1992 1991
 Revenues:
 Toll revenues $2,001 $1,487
 Transmission revenues 1,200 1,085
 Total 3,201 2,572
 Expenses:
 Operating 1,048 947
 SG&A 668 391
 Total 1,716 1,338
 Operating income 1,485 1,234
 Depreciation and amortization (1,097) (998)
 Interest and dividend income 399 214
 Income before income taxes 787 450
 Provision for income taxes (290) 153
 Net income $497 $297
 Net income per common share $.07 $.04
 Weighted average shares 7,044 6,945
 OCOM CORPORATION
 (In thousands, except per share data)
 Periods Ended Sept. 30 Three Months
 1992 1991
 Revenues:
 Toll revenues $ 5,687 $ 3,787
 Transmission revenues 3,627 1,085
 Total 9,314 4,872
 Expenses:
 Operating 3,148 2,547
 SG&A 1,940 789
 Total 5,088 3,336
 Operating income 4,226 1,536
 Depreciation and amortization (3,382) (2,898)
 Interest and dividend income 1,194 214
 Income (loss) before income taxes 2,038 (1,148)
 Provision for income taxes (670) (153)
 Net income (loss) $ 1,368 $ (1,301)
 Net income (loss) per common share $ .19 $ (.20)
 Weighted average shares 7,055 6,625
 OCOM was formerly a wholly owned subsidiary of Cellular Communications, Inc. ("CCI") . In 1990, CCI and PacTel Corporation ("PacTel") entered into a Merger and Joint Venture Agreement ("Merger Agreement") whereby, on August 1, 1991, CCI's and PacTel's cellular interests in Michigan and Ohio were contributed to a new joint venture equally owned by the two companies (the "Joint Venture").
 In connection with the Merger Agreement, on July 31, 1991, CCI distributed to its stockholders the stock of OCOM which consisted of CCI's long-distance and microwave operations in Ohio. CCI stockholders received one share of OCOM's common stock for every six shares of CCI stock owned. Immediately prior to the distribution, OCOM received a cash contribution of $25,000,000 from CCI. In September 1991, OCOM purchased $20,000,000 of CCI Series A Preference Stock.
 On July 1, 1991, OCOM began operating the private line microwave transmission service between the CCI Ohio system's cell sites and switches, and began selling interexchange long distance service to the CCI Ohio system's cellular customers. OCOM and the Joint Venture entered into an agreement with an initial term of two years whereby OCOM provides private line services to the Joint Venture.
 In connection with the formation of the Joint Venture, PacTel applied for an MFJ (Modification of Final Judgment) waiver (the "Waiver") from the U.S. District Court for the District of Columbia to allow the Joint venture to provide interLATA cellular telephone service within certain Metropolitan Statistical Areas in Northern Ohio, and to allow the Joint Venture to provide voice mail services to its customers. The waiver was denied in January 1992, and an appeal of that denial was filed in the U.S. Court of Appeals for the District of Columbia Circuit. In November 1992 the Court of Appeals issued an order remanding the matter back to the District Court for further consideration to determine if the District Court's decision had been reached by the application of the standard that the Court of Appeals stated should be applied to such waivers. Currently, OCOM provides the long distance service to the Joint Venture's customers in these Northern Ohio areas and voice mail services to the Joint Venture's customers, which together accounted for $767,000 in toll revenues in the third quarter of 1992. If the waiver is ultimately issued, it is expected that these revenues will terminate.
 Fourth quarter 1992 operating results will be substantially lower than previous quarters in 1992 due to the following operational changes. In November 1992, the Joint Venture's Ohio subscribers who obtained their long distance service from OCOM selected by ballot and will begin using their choice of long distance service provider. Operating results will decline because of the loss of approximately 42 percent of the current customers who will commence using another long distance company in November 1992. The Joint Venture is recovering its costs to implement equal access through a charge to each long distance company that obtained customers from the equal access selection process. OCOM will recognize its share of this charge in November 1992. An additional reduction in operating income is expected from the loss of a portion of OCOM's December 1992 revenues because OCOM is giving free long distance service in December 1992 to everyone who selected OCOM in the equal access balloting.
 RESULTS OF THIRD QUARTER OPERATIONS
 Toll revenues increased from $1,487,000 to $2,001,000 as a result of increased long distance usage by the Joint Venture's cellular subscribers and roamers.
 Transmission revenue increased from $1,085,000 to $1,200,000 due to an increase in transmission circuits ordered by and provided to the Joint Venture.
 Operating expenses increased from $947,000 to $1,048,000 due to the increase in the level of long distance usage by the Joint Venture's cellular subscribers and roamers, and the expanded microwave network and other equipment subject to the Ohio personal property tax.
 Selling, general and administrative expenses increased from $391,000 to $668,000 primarily due to the increases in personnel, marketing costs and professional fees.
 Depreciation and amortization expense increased from $998,000 to $1,097,000 because additional microwave equipment was installed to serve new cell sites and to increase transmission capacity.
 Interest and dividend income increased from $214,000 to $399,000 due to higher cash balances and accrued dividends on the CCI Preferred Stock.
 -0- 11/13/92
 /CONTACT: Stanton N. Williams, director-corporate development, 212-906-8448 or Richard J. Lubasch, vice president-general counsel, 212-906-8470, both for OCOM Corp./
 (OHCO) CO: OCOM Corp. ST: New York IN: TLS SU: ERN


SM-TM -- NY006 -- 0528 11/13/92 08:45 EST
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Date:Nov 13, 1992
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