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DCA REPORTS FOURTH QUARTER AND FISCAL YEAR RESULTS

 ALPHARETTA, Ga., July 12 /PRNewswire/ -- Digital Communications Associates Inc. (NYSE: DCA) today reported a consolidated loss -- relating primarily to a previously announced decision to restructure and sell its Pacific Data Products (PDP) subsidiary -- of $7.2 million or 71 cents per share for its fourth fiscal quarter that ended June 30, 1993 compared to net income of $6.4 million or 54 cents for the same period a year ago.
 DCA had record consolidated revenues of $64 million during the fourth quarter compared to $58.9 million for the same period a year ago. San Diego-based PDP, a printer products manufacturer, contributed revenues of $12.2 million and an operating loss of $12 million. DCA's communications business had revenues of $51.8 million and income from operations of $3.7 million. During the quarter DCA had 10.1 million average shares outstanding compared to 11.9 million the previous year.
 During the fourth quarter, DCA said its workstation communications products, which include its IRMA, Crosstalk, MacIRMA and Unisys-related lines, accounted for 65.8 percent of sales; its workgroup communications products, which include its IRMAtrac, IRMALAN/EP, Remote LAN Node (RLN) and Select Communications Server lines, accounted for 15.1 percent of sales; and its printer-related products, which include its printer, font, printer emulation and memory lines, accounted for 19.1 percent of sales.
 "Our communications business was exceptionally strong during the quarter increasing nearly 16 percent from the third quarter and growing 22 percent over the fourth quarter last year," said Charles G. "Garry" Betty, DCA president and chief executive officer. "During the last three years, the communications portion of our business has shown an annual compounded revenue growth rate of nearly 19 percent, going from $130 million in fiscal 1991 to $183 million in fiscal 1993."
 For the fiscal year ended June 30, 1993, DCA reported record consolidated revenues of $241.9 million compared to $209.4 million for fiscal 1992 and reported a consolidated loss of $65.2 million or $6.04 per share compared to net income of $19.7 million or $1.73 per share for the same period a year ago.
 Excluding PDP, DCA's communications business had revenues of $183.2 million and income from operations of $16.5 million. PDP's operating loss of $78.6 million included a $59.9 million write-off of the remaining goodwill associated with DCA's purchase of PDP in March 1990 and further restructuring charges of $4.7 million related to the company's announcement in June that it plans to sell PDP. Average shares outstanding for the year were 10.8 million compared to 11.3 million the prior year.
 Beginning early in fiscal 1993, DCA reported that PDP was experiencing a sales decline of its add-on family of printer emulation and font products as customers moved to Microsoft's Windows 3.1 operating environment which contains similar capabilities as PDP's products. Then, in February 1993, DCA announced the write-off of goodwill and initial restructuring charges.
 In preparing to sell PDP, DCA said last month it would write down some of PDP's inventory and make other accounting adjustments that would result in a $12 million operating loss at the subsidiary during the fourth quarter.
 DCA said it purchased 1.6 million shares of its common stock at an average price of $17.36 per share during the fiscal year under a stock repurchase program authorized in January 1993 and had 10.1 million shares outstanding on June 30, 1993.
 Located 30 miles north of Atlanta, DCA designs, manufactures, markets and supports products worldwide that enhance productivity for personal computer users.
 Digital Communications Associates, Inc.
 Consolidated Statements of Operations
 (In thousands except net income per share)
 Three Months Ended
 June 30,
 (Unaudited) Percent
 1993 1992 Change
 Digital Communications Associates, Inc.
 Continuing Operations
 Net Sales $51,757 $42,293 22.4
 Cost of Sales 16,423 12,743 28.9
 Gross Profit 35,334 29,550 19.6
 Selling, general
 and administrative
 expenses 21,323 16,985 25.5
 Research and
 development expenses 8,348 5,522 51.2
 Amortization of
 intangible assets 1,956 333 487.4
 3,707 6,710 (44.8)
 Pacific Data Products, Inc.
 (Held for Sale)
 Net sales 12,256 16,653 (26.4)
 Cost of sales 14,475 9,327 55.2
 Other expenses 5,070 6,327 (19.9)
 Amortization of
 intangible assets 0 951 (100.0)
 Write-off of goodwill 0 0 0.0
 Estimated costs until
 sale of subsidiary 4,666 0 0.0
 (11,955) 48 (25006.3)
 Income (Loss)
 From Operations (8,248) 6,758 (222.0)
 Settlement of securities
 class action lawsuits 0 0 0.0
 Foreign exchange
 gains (losses), net (483) (194) 149.0
 Interest and other
 income, net 783 1,579 (50.4)
 Income (loss) from
 disposal of assets
 and liabilities 0 0 0.0
 Income (Loss)
 Before Income
 Taxes (7,948) 8,143 (197.6)
 Income tax expense
 (benefit) (764) 1,793 (142.6)
 Net Income
 (Loss) $(7,184) $6,350 (213.1)
 Net Income (Loss)
 Per Share $(0.71) $0.54 (231.5)
 Average shares 10,117 11,857 (14.7)
 Twelve Months Ended
 June 30, Percent
 1993 1992 Change
 Digital Communications Associates, Inc.
 Continuing Operations
 Net Sales $183,157 $139,974 30.9
 Cost of Sales 58,540 41,963 39.5
 Gross Profit 124,617 98,011 27.1
 Selling, general
 and administrative
 expenses 76,326 60,570 26.0
 Research and
 development expenses 27,845 18,827 47.9
 Amortization of
 intangible assets 3,996 334 1096.4
 16,450 18,280 (10.0)
 Pacific Data Products, Inc.
 (Held for Sale)
 Net sales 58,740 69,400 (15.4)
 Cost of sales 45,796 34,694 32.0
 Other expenses 24,718 24,371 1.4
 Amortization of
 intangible assets 2,219 3,876 (42.8)
 Write-off of goodwill 59,917 0 0.0
 Estimated costs until
 sale of subsidiary 4,666 0 0.0
 (78,576) 6,459 (1316.5)
 Income (Loss)
 From Operations (62,126) 24,739 (351.1)
 Settlement of securities
 class action lawsuits 0 (3,250) (100.0)
 Foreign exchange
 gains (losses), net (1,161) (2,123) (45.3)
 Interest and other
 income, net 3,811 5,857 (34.9)
 Income (loss) from
 disposal of assets
 and liabilities (4,631) 0 0.0
 Income (Loss)
 Before Income
 Taxes (64,107) 25,223 (354.2)
 Income tax expense
 (benefit) 1,082 5,550 (80.5)
 Net Income
 (Loss) $(65,189) $19,673 (431.4)
 Net Income (Loss)
 Per Share $(6.04) $1.73 (449.1)
 Average shares 10,799 11,343 (4.8)
 Consolidated Statements of Operations
 (Percent of Net Sales)
 Three Twelve
 Months Ended Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Digital Communications Associates, Inc.
 Continuing Operations
 Net Sales 80.9 71.7 75.7 66.9
 Cost of Sales 25.7 21.6 24.2 20.0
 Gross Profit 55.2 50.1 51.5 46.9
 Selling, general and
 administrative expenses 33.3 28.8 31.6 28.9
 Research and development
 expenses 13.0 9.4 11.5 9.0
 Amortization of intangible
 assets 3.1 0.6 1.7 0.2
 5.8 11.3 6.7 8.8
 Pacific Data Products, Inc.
 (Held for Sale)
 Net sales 19.1 28.3 24.3 33.1
 Cost of sales 22.6 15.8 18.9 16.6
 Other expenses 7.9 10.7 10.2 11.6
 Amortization of
 intangible expenses 0.0 1.6 0.9 1.9
 Write-off of goodwill 0.0 0.0 24.8 0.0
 Estimated costs until
 sale of subsidiary 7.3 0.0 1.9 0.0
 (18.7) 0.2 (32.4) 3.0
 Income (Loss) From
 Operations (12.9) 11.5 (25.7) 11.8
 Settlement of securities
 class action lawsuits 0.0 0.0 0.0 (1.6)
 Foreign exchange gains
 (losses), net (0.7) (0.4) (0.5) (1.0)
 Interest and other
 income, net 1.2 2.7 1.6 2.8
 Income (loss) from
 disposal of assets
 and liabilities 0.0 0.0 (1.9) 0.0
 Income (Loss) Before
 Income Taxes (12.4) 13.8 (26.5) 12.1
 Income tax expense
 (benefit) (1.2) 3.0 0.4 2.7
 Net Income (Loss) (11.2) 10.8 (26.9) 9.4
 Product Group Sales As
 A Percent of Total Sales
 (Unaudited) 1Q93 2Q93 3Q93 4Q93
 Workstation Communications Products
 (IRMA, Crosstalk, MacIRMA,
 and Unisys-related) 53.8 52.3 60.3 65.8
 Printer-Related Products
 (Pacific Data Products) 29.4 28.4 20.0 19.1
 Workgroup Communications Products
 (IRMAtrac, IRMALAN,
 Select and RLN) 16.8 19.3 19.7 15.1
 100.0 100.0 100.0 100.0
 Consolidated Balance Sheets June 30, June 30,
 (In thousands) 1993 1992
 Assets
 Current Assets
 Cash, cash equivalents and
 short-term investments $ 29,746 $104,686
 Accounts receivable 47,210 35,268
 Inventories 24,010 18,797
 Other current assets 10,594 9,649
 Total Current Assets 111,560 168,400
 Investments 27,600 20,000
 Net Property and Equipment 22,054 21,308
 Intangible Assets 39,602 77,797
 Other Assets 517 5,038
 $201,333 $292,543
 Liabilities and Stockholders' Equity
 Current Liabilities
 Accounts payable and accrued expenses $ 38,994 $ 32,128
 Income taxes payable 7,033 14,461
 Total Current Liabilities 46,027 46,589
 Stockholders' Equity 155,306 245,954
 $201,333 $292,543
 -0- 7/12/93
 /CONTACT: Media: William B. Marks, 404-442-4520 or, home,


404-987-9565 or, beeper, 404-533-6140; or Analysts: Kathleen H. Howard, 404-442-4268, both of Digital Communications Associates/
 (DCA)


CO: Digital Communications Associates Inc. ST: Georgia IN: CPR SU: ERN

BR-BN -- AT010 -- 0550 07/12/93 16:07 EDT
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Date:Jul 12, 1993
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