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 HECTOR, Minn., Oct. 27 /PRNewswire/ -- Communications Systems, Inc. (NASDAQ-NMS: CSII) (CSI) today reported net income of $2,008,000 or $.22 per share for the third quarter of 1993, an increase of 31 percent from $1,536,000 or $.17 per share in the same period one year ago. Third quarter revenues totaled $16,622,000, up 18 percent from $14,096,000 in the third quarter of 1992.
 For the first nine months of 1993, net income came to $5,193,000 or $.58 per share, an increase of 29 percent from $4,021,000 or $.45 per share last year before a one-time tax benefit related to the adoption of a new accounting method for income taxes. After a tax benefit of $481,000 or $.05 per share, net income for the first nine months of 1992 came to $4,502,000 or $.50 per share. Revenues for the first nine months of 1993 rose 5 percent to $44,243,000.
 Curtis A. Sampson, CSI's president and chief executive officer, said the strong third quarter results were driven by another strong performance by the company's domestic telecommunications apparatus business. He said the fourth quarter is shaping up as another strong period for domestic apparatus operations, making him confident CSI will report record sales and earnings for the full year.
 Sampson said the higher sales and profitability of the domestic telecommunications business resulted from: increased market penetration among the Regional Bell Operating Companies and GTE, the company's core customer base; significant sales of corrosion-resistant telephone connecting devices; and strongly growing shipments of higher-margin connectors to the data communications market. He said pre-tax income also benefited from higher levels of shipments from CSI's manufacturing facility in Puerto Rico, where corporate income is taxed at reduced rates.
 The profit contribution of Austin Taylor Communications, Ltd. in Wales, the company's international telecommunications apparatus unit, increased 27 percent in the third quarter. Although the European economy remains sluggish, Austin Taylor is benefiting from significant orders for telephone and data communications connecting devices from such customers as British Telecom and AT&T Europe.
 Zercom Corporation, CSI's contract manufacturing business, posted an operating loss in the third quarter, primarily due to heavy growth- related costs as the unit prepared for expanding production. Significant resources were also devoted to developing a new proprietary product. Zercom's profitability is expected to strengthen in the fourth quarter as the unit focuses on shipping its substantial order backlog.
 CSI is a leading manufacturer of modular connecting and premise wiring devices for the telephone and data communications markets in the United States and Europe. The company's common stock is traded on the National Market System under the NASDAQ symbol CSII.
 -0- 10/27/93
 /CONTACT: Curtis A. Sampson, president and CEO; Paul N. Hanson, CFO, or Avis J. Johnson, director of shareholder relations, 612-848-6231, Communications Systems/

CO: Communications Systems, Inc. ST: Minnesota IN: TLS SU: ERN

AL-DB -- MN006 -- 7199 10/27/93 10:50 EDT
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Publication:PR Newswire
Date:Oct 27, 1993

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