Printer Friendly

DATA SWITCH SAYS EARNINGS EXPECTED TO BE LOWER THAN ANTICIPATED; REVENUES AND NEW PRODUCT SALES ON TARGET

 SHELTON, Conn., Sept. 20 /PRNewswire/ -- In a statement today, Data Switch (NASDAQ-NMS: DASW) President and Chief Executive Officer J. Roger Moody said that the company's 1993 earnings are expected to be lower than published analyst expectations.
 He explained: "Until recently, we had been reasonably comfortable with published estimates that had Data Switch earning approximately 25 cents per share on revenues of $100 million. We are still comfortable with the revenue projection. Domestic revenues are exceeding expectations, although our international business is particularly slow, and we do not foresee a pick-up in sale before the end of the year. All five new products that Data Switch promised for 1993 are shipping, customer acceptance is high, and new product sales are on track.
 "However, we are not comfortable with the earnings target for two reasons. First, our margins have been hurt by pricing pressures due to excessive discounting by the mainframe market leader. In some cases, IBM has offered extended free use of certain products. Second, we are selling an unexpectedly large number of low-margin OEM products."
 -0- 9/20/93
 /CONTACT: Linda L. Bachmann, director-corporate communications of Data Switch, 203-926-1801/
 (DASW)


CO: Data Switch Corporation ST: Connecticut IN: SU: ERP

SH-CK -- NY037 -- 3555 09/20/93 10:21 EDT
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:Sep 20, 1993
Words:208
Previous Article:ENERGY RESEARCH CORPORATION SUBSIDIARY RECEIVES CONTRACT
Next Article:TRANS-LUX ANNOUNCES DIVIDEND
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters