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DCA REPORTS THIRD QUARTER EARNINGS

 DCA REPORTS THIRD QUARTER EARNINGS
 ALPHARETTA, Ga., April 7 /PRNewswire/ -- Digital Communications


Associates Inc. (NYSE: DCA) (DCA) today reported earnings of $6 million or 53 cents per share for its third fiscal quarter ended March 31, 1992 compared to $5.7 million or 49 cents per share for the same quarter a year ago.
 DCA noted that it recorded net foreign exchange gains of $588,000 in its third fiscal quarter and net foreign exchange losses of $1.9 million in the nine months ended March 31, 1992.
 Sales for the quarter ended March 31, 1992 were $51.1 million, compared to $52 million reported for the same quarter a year ago. Sales of DCA's 10NET product line, which was sold on June 30, 1991, were $1.5 million for the same quarter a year ago. Average shares outstanding for the quarter ended March 31, 1992 were 11.4 million compared to 11.6 million for the same quarter a year ago.
 DCA said that for the quarter ended March 31, 1992, its workstation communications products, which include its IRMA, Crosstalk and MacIRMA lines, accounted for 51.5 percent of its sales; laser printer enhancement products, which include its printer emulation, typeface products and memory expansion lines, accounted for 36.8 percent of sales; and its workgroup communications products, which include its IRMAtrac, IRMALAN and Select Communications Server lines, accounted for 11.7 percent of sales.
 Earnings for the nine months ended March 31, 1992 were $13.3 million or $1.18 per share. Before an unusual charge of $3.25 million recorded in November 1991 in connection with the settlement of consolidated securities class action lawsuits filed against DCA and certain of its officers and directors, DCA said, earnings for the nine months ended March 31, 1992 were $15.9 million or $1.40 per share, compared to $13.6 million or $1.10 per share for the same period a year ago.
 For the nine months ended March 31, 1992, DCA reported sales of $150.4 million, compared to $144.8 million for the same period a year ago. Sales of DCA's 10NET product line were $5.3 million for the same period a year ago. Average shares outstanding for the nine month period were 11.3 million compared to 12.3 million in the same period a year ago. DCA said it had 10.8 million shares outstanding on March 31, 1992.
 Located 30 miles north of Atlanta, DCA designs, manufactures, markets and supports products worldwide that enhance productivity for personal computer users. DCA's current fiscal year ends June 30, 1992.
 Digital Communications Associates, Inc.
 Consolidated Statements of Income
 (In thousands except net income per share, unaudited)
 Three Months Ended
 March 31, Pct.
 1992 1991 Change
 Net sales $51,122 $51,988 (1.7)
 Cost of sales 17,976 20,095 (10.5)
 Gross Profit 33,146 31,893 3.9
 Selling, general and
 administrative expenses 20,332 19,908 2.1
 Research and development
 expenses 5,968 5,816 2.6
 Amortization of
 intangible assets 976 975 ---
 Income From Operations 5,870 5,194 13.0
 Settlement of securities
 class action lawsuits --- ---
 Foreign exchange gains
 (losses), net 588 (2) (41)
 Interest and other
 income, net 1,296 2,021 (35.9)
 Income Before
 Income Taxes 7,754 7,174 8.1
 Income taxes 1,705 1,435 18.8
 Net Income $ 6,049 $ 5,739 5.4
 Net Income Per Share $ .53 $ .49 8.2
 Average shares 11,363 11,601 (2.1)
 Consolidated Statements of Income
 (In thousands except net income per share, unaudited)
 Nine Months Ended
 March 31, Pct.
 1992 1991 Change
 Net sales $150,428 $144,812 3.9
 Cost of sales 54,587 56,330 (3.1)
 Gross Profit 95,841 88,482 8.3
 Selling, general and
 administrative expenses 57,477 60,074 (4.3)
 Research and development
 expenses 17,457 15,640 11.6
 Amortization of
 intangible assets 2,926 5,776 (1) (49.3)
 Income From Operations 17,981 6,992 157.2
 Settlement of securities
 class action lawsuits (3,250) ---
 Foreign exchange gains
 (losses), net (1,929) (2) (95)
 Interest and other
 income, net 4,278 7,617 (43.9)
 Income Before
 Income Taxes 17,080 14,514 17.7
 Income taxes 3,757 903 (3) 316.1
 Net Income $13,323 $13,611 (2.1)
 Net Income Per Share $1.18 $1.10 (4) 7.3
 Average shares 11,316 12,335 8.3
 (1) Increased by a $1,995,000 amortization expense related to
 the write-off of the then remaining intangible assets
 associated with DCA's 1987 acquisition of the assets and
 liabilities of Fox Research, Inc.
 (2) In Europe, DCA invoices customers in various foreign
 currencies and is therefore impacted by fluctuating foreign
 exchange rates. Fluctuations in foreign exchange rates
 impact the valuation of net current assets and revenue
 recorded. From time to time, DCA hedges foreign exchange
 risk associated with existing net current assets by
 purchasing forward exchange contracts. In addition, in July
 1991, DCA purchased foreign exchange contracts relating to
 some of its future anticipated sales in foreign currencies
 for DCA's fiscal year ending June 30, 1992. These contracts
 mature monthly in approximately equal amounts through
 October 1992. Open forward exchange contracts valued in
 U.S. dollars as of March 31, 1992 totaled $15,888,000.
 DCA's net current assets denominated in European currencies
 totaled $10,453,000 at March 31, 1992. European currency
 denominated revenues averaged $3,630,000 per month in the
 quarter ended March 31, 1992. Open forward exchange
 contracts are revalued at each balance sheet date at the
 then current spot or forward exchange rate and any
 unrealized gain or loss is recognized in consolidated net
 income. Consolidated net income is also affected by
 translation gains or losses arising from the translation of
 foreign currency denominated net current assets and by the
 amortization of premiums paid on forward exchange contracts.
 These factors resulted in a net foreign exchange gain of
 $588,000 for the quarter ended Mar. 31, 1992 and a loss of
 $1,929,000 for the nine months then ended.
 (3) Decreased by $2,000,000 due to the recognition of a
 previously non-deductible tax loss associated with DCA's
 August 1990 disposition of stock in its Digital Transmission
 Systems, Inc. subsidiary.
 (4) The net after-tax effect of the additional amortization and
 the tax reduction was approximately $0.03 per share.
 Consolidated Statements of Income
 (Percent of Net Sales)
 Three Months Ended Nine Months Ended
 March 31, March 31,
 1992 1991 1992 1991
 Net sales 100.0 100.0 100.0 100.0
 Cost of sales 35.2 38.6 36.3 38.9
 Gross Profit 64.8 61.4 63.7 61.1
 Selling, general and
 administrative expenses 39.7 38.3 38.2 41.5
 Research and development
 expenses 11.7 11.2 11.6 10.8
 Amortization of
 intangible assets 1.9 1.9 1.9 4.0
 Income From Operations 11.5 10.0 12.0 4.8
 Settlement of securities
 class action lawsuits --- --- (2.2) ---
 Foreign exchange gains
 (losses), net 1.2 (.1) (1.3) (.1)
 Interest and other income, net 2.5 3.9 2.9 5.3
 Income Before Income Taxes 15.2 13.8 11.4 10.0
 Income taxes 3.4 2.8 2.5 .6
 Net Income 11.8 11.0 8.9 9.4
 Three Months Ended Nine Months Ended
 March 31, March 31,
 Product Group Sales As 1992 1991 1992 1991
 A Percent of Total Sales
 Workstation Communications
 Products (IRMA, Crosstalk,
 MacIRMA, etc.) 51.5 60.4 52.7 58.8
 Laser Printer Enhancement
 Products (Pacific Data
 Products) 36.8 31.8 35.1 32.8
 Workgroup Communications
 Products (IRMAtrac,
 IRMALAN and Select
 Communications Server) 11.7 7.8 (1) 12.2 8.4 (1)
 100.0 100.0 100.0 100.0
 (1) Excludes sales of DCA's 10NET product line which was sold on
 June 30, 1991.
 Consolidated Balance Sheets
 (In thousands, unaudited at March 31)
 March 31, June 30,
 1992 1991
 Assets
 Current Assets
 Cash, cash equivalents and
 short-term investments $110,720 $105,758
 Accounts receivable 24,194 26,220
 Inventories 16,367 16,365
 Other current assets 8,348 7,670
 Total Current Assets 159,629 156,013
 Investments 20,000 5,000
 Net Property and Equipment 18,854 19,439
 Intangible Assets 63,088 66,013
 Other Assets 4,615 4,545
 Total $266,186 $251,010
 Liabilities and Stockholders' Equity
 Current Liabilities
 Accounts payable and accrued expenses $ 25,811 $ 24,586
 Income taxes payable 10,762 11,850
 Total Current Liabilities 36,573 36,437
 Stockholders' Equity 229,613 214,574
 Total $266,186 $251,010
 -0- 4/7/92
 /CONTACT: MEDIA: William B. Marks, 404-442-4520 (office), 804-245-2662 (after hours), or 404-690-6665 (beeper), or ANALYSTS: Kathleen J. Hassett, 404-442-4268, both of Digital Communications Associates/
 (DCA) CO: Digital Communications Associates ST: Georgia IN: CPR SU: ERN


BR-BN -- AT008 -- 5956 04/07/92 16:51 EDT
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