Printer Friendly

DCA REPORTS FIRST QUARTER EARNINGS; ANNOUNCES INTENTION TO REPURCHASE SHARES

 DCA REPORTS FIRST QUARTER EARNINGS;
 ANNOUNCES INTENTION TO REPURCHASE SHARES
 ALPHARETTA, Ga., Oct. 7 /PRNewswire/ -- Digital Communications Associates Inc. (NYSE: DCA) (DCA) today reported earnings of $3.9 million or 33 cents per share for its first fiscal quarter ended Sept. 30, compared to $4.2 million or 38 cents per share for the same period a year ago.
 Sales for the quarter were $59.8 million compared to $47.4 million for the same period a year ago. Average shares outstanding for the quarter were 11.9 million compared to 11 million for the same period a year ago. DCA reported 11,563,849 shares outstanding on Sept. 30, 1992.
 DCA said it will re-enter the stock market effective immediately to buy up to $15 million of DCA stock under a repurchase program authorized by its board of directors in January 1990. DCA was originally authorized to buy up to $20 million of its stock and has purchased $5 million. The repurchases will be made from time to time in the open market as conditions warrant.
 DCA said during the first quarter its workstation communications products, which include its IRMA, Crosstalk, MacIRMA and Unisys- related lines, accounted for 53.8 percent of sales; its workgroup communications products, which include its IRMAtrac, IRMALAN/EP, Remote LAN Node (RLN) and Select Communications Server lines, accounted for 16.8 percent of sales; and its printer-related products, which include its printer, font, printer emulation and memory lines, accounted for 29.4 percent of sales.
 DCA had noted in an earlier announcement that it expected its earnings to be impacted by a product mix change at its Pacific Data Products (PDP) subsidiary in San Diego, which is experiencing increased sales of its new, highly-innovative, lower-margin, printer plotter product and lower sales of its higher margin, printer emulation products.
 In addition to the gross margin impact at PDP, DCA said sales were better than expected in September for products covered by a commission arrangement in a "Strategic Business Alliance" with Unisys Corporation which also affected its gross margins. The company also noted it continues to see an increase in sales of its lower-margin IRMAtrac Token-Ring Adapter/Convertible local area network adapter.
 DCA said it also experienced higher expense levels in the first fiscal quarter due primarily to new investments in its international operations, and increases in research and marketing costs for its RLN product line.
 However, DCA noted that sales of its communications products were strong, especially its IRMAtrac Token-Ring Adapter/Convertible local area network adapter, its IRMA WorkStation for Windows (IWW) personal computer (PC) to IBM mainframe computer communications software and its INFOConnect PC to Unisys mainframe communications product.
 DCA received several large orders for its communications products during the quarter including an IRMAtrac order from a major governmental agency, an IWW order from a major foreign governmental agency and a large service contract from an international financial institution.
 "We saw good demand for our core communications products during the quarter," said C. "Garry" Betty, DCA president and chief executive officer. "As we work through the impact of a product transition in our printer-related product line, we believe the underlying fundamentals of our business are strong."
 For its fiscal year ended June 30, 1992, DCA reported earnings of $19.7 million or $1.73 per share, up 28 percent over $15.4 million or $1.29 per share the previous year. DCA's revenues were $209.4 million compared to $191.9 million for the previous year.
 Located 30 miles north of Atlanta, DCA designs, manufactures, markets and supports products worldwide that enhance the productivity of PC users.
 DIGITAL COMMUNICATIONS ASSOCIATES, INC.
 Consolidated Statements of Income
 (In thousands except net income per share, unaudited)
 Three Months Ended
 Sept. 30, Percent
 1992 1991 Change
 Net sales $ 59,814 $ 47,390 26.2
 Cost of sales 24,461 17,668 38.4
 Gross Profit 35,353 29,722 18.9
 Selling, general and
 administrative expenses 22,747 18,085 25.7
 Research and development
 expenses 7,399 5,745 28.8
 Amortization of
 intangible assets 1,351 975 38.6
 Income from Operations 3,856 4,917 (21.6)
 Interest and other
 income, net 1,102 1,325 (16.8)
 Foreign exchange gains
 (losses), net 64 (811) 107.9
 Income Before Income
 Taxes 5,022 5,431 (7.5)
 Income taxes 1,105 1,195 (7.5)
 Net Income $ 3,917 $ 4,236 (7.5)
 Net Income Per Share $ .33 $ .38 (13.2)
 Average shares 11,914 11,023 8.1
 Consolidated Statements of Income
 (Percent of Net Sales)
 Three months ended Sept. 30 1992 1991
 (Unaudited)
 Net sales 100.0 100.0
 Cost of sales 40.9 37.3
 Gross Profit 59.1 62.7
 Selling, general and administrative expenses 38.1 38.2
 Research and development expenses 12.3 12.1
 Amortization of intangible assets 2.3 2.0
 Income From Operations 6.4 10.4
 Interest and other income, net 1.9 2.7
 Foreign exchange gains (losses), net .1 (1.7)
 Income Before Income Taxes 8.4 11.4
 Income taxes 1.9 2.5
 Net Income 6.5 8.9
 Product Group Sales as
 a Percent of Total Sales
 (Unaudited) 1Q93
 Workstation Communications Products (IRMA, 53.8
 Crosstalk, MacIRMA and Unisys-related)
 Printer-Related Products 29.4
 (Pacific Data Products)
 Workgroup Communications Products 16.8
 (IRMAtrac, IRMALAN, Select and RLN)
 Total 100.0
 Consolidated Balance Sheets
 (In thousands)
 Sept. 30, June 30,
 1992 1992
 (Unaudited)
 Assets
 Current Assets
 Cash, cash equivalents and
 short-term investments $ 97,383 $104,686
 Accounts receivable 38,687 35,268
 Inventories 20,723 18,797
 Other current assets 9,789 9,649
 Total Current Assets 166,582 168,400
 Investments 20,000 20,000
 Net Property and Equipment 21,172 21,308
 Intangible Assets 76,446 77,797
 Other Assets 4,871 5,038
 Total $289,071 $292,543
 Liabilities and Stockholders' Equity
 Current Liabilities
 Accounts payable and accrued expenses $ 26,131 $ 32,128
 Income taxes payable 12,520 14,461
 Total Current Liabilities 38,651 46,589
 Stockholders' Equity 250,420 245,954
 Total $289,071 $292,543
 -0- 10/7/92
 /CONTACT: William B. Marks, 404-442-4520 or, home, 404-987-9565; or Financial Analysts Contact: Kathleen J. Hassett, 404-442-4268, both of Digital Communications Associates/
 (DCA) CO: Digital Communications Associates Inc. ST: Georgia IN: CPR SU: ERN


BN-BR -- AT007 -- 7599 10/07/92 16:56 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 7, 1992
Words:1065
Previous Article:USAIR FINALIZES STRIKE FLIGHT SCHEDULE FOR THE NEXT WEEK, REPORTS EXCELLENT OPERATIONAL PERFORMANCE ON TUESDAY
Next Article:USAIR FINALIZES STRIKE FLIGHT SCHEDULE FOR THE NEXT WEEK, REPORTS EXCELLENT OPERATIONAL PERFORMANCE ON TUESDAY
Topics:


Related Articles
TAMBRANDS REPORTS RECORD HIGH FIRST-QUARTER SALES AND EARNINGS AND ANNOUNCES ADDITIONAL SHARE REPURCHASE
AMERICAN PRESIDENT COMPANIES ANNOUNCES FIRST QUARTER RESULTS AND ITS INTENTION TO REPURCHASE UP TO TWO MILLION SHARES OF ITS COMMON STOCK
DCA REPORTS FISCAL YEAR AND FOURTH QUARTER EARNINGS
DIGITAL COMMUNICATIONS EXPECTS FIRST QUARTER EARNINGS TO BE FLAT OR SLIGHTLY UP FROM PRIOR YEAR
DIGITAL COMMUNICATIONS RESTRUCTURES PRINTER PRODUCTS UNIT
DCA PROVIDES INDICATION FOR THIRD FISCAL QUARTER
DIGITAL COMMUNICATIONS REPORTS THIRD QUARTER RESULTS
DIGITAL COMMUNICATIONS REPORTS FIRST QUARTER EARNINGS
DIGITAL COMMUNICATIONS REPORTS FIRST QUARTER EARNINGS
Danaher Corporation Announces Record First Quarter Results and Stock Repurchase Program.

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