Printer Friendly

DIGITAL COMMUNICATIONS REPORTS THIRD QUARTER RESULTS

 ALPHARETTA, Ga., April 12 /PRNewswire/ -- Digital Communications Associates Inc. (DCA) (NYSE: DCA) today reported a net loss of $66.6 million or $6.40 per share for its third fiscal quarter ended March 31, 1993, compared to net income of $6 million or 53 cents per share for the same period a year ago.
 Without several one-time charges totaling $67.7 million and the associated tax benefit related to the restructuring of the company's Pacific Data Products (PDP) subsidiary, based in San Diego, DCA said its net income would have been $424,000 for the quarter ended March 31, 1993.
 Sales for the quarter ended March 31, 1993, were $55.7 million compared to $51.1 million reported for the same period a year ago. Average common and dilutive equivalent shares for the quarter were 10.4 million compared to 11.4 million a year ago.
 DCA said during its third fiscal quarter, its workstation communications products, which include its IRMA, Crosstalk, MacIRMA and Unisys-related lines, accounted for 60.3 percent of sales; its workgroup communications products, which include its IRMAtrac, IRMALAN/EP, Remote LAN Node (RLN) and Select Communications Server lines, accounted for 19.7 percent of sales; and its printer-related products, which include its printer, font, printer emulation and memory lines, accounted for 20 percent of sales.
 In a news release issued Feb. 12, 1993, DCA said PDP would have an operating loss for the third quarter because of a decline in sales of its products. DCA also said it would restructure PDP and announced the write-off of goodwill associated with its 1990 purchase of PDP and additional asset write-offs not related to PDP.
 DCA had noted in several earnings news releases that PDP's printer emulation and font products were experiencing a slowdown in sales as customers moved to the Microsoft Windows 3.1 operating environment which contains similar printing capabilities as PDP's products.
 In addition to its third quarter results, DCA also announced that Thomas Bogan, former president of Avatar Inc. -- acquired by DCA in December -- has been named interim president of PDP replacing Charles Rudolph who resigned.
 DCA's communications business, which had been previously reported to be experiencing slowness in January and February, had stronger sales in March.
 For the nine months ended March 31, 1993, DCA reported a net loss of $58 million or $5.26 per share compared to net income of $13.3 million or $1.18 per share for the same period a year ago. Without the several one-time charges and the associated tax benefit related to the restructuring of PDP, DCA would have had net income of $9 million for the nine months.
 Sales for the nine months were $177.9 million compared to $150.4 million for the same period a year ago. Average common and dilutive equivalent shares for the nine months were 11 million compared to 11.3 million a year ago.
 Under a $25 million stock repurchase program authorized by its board of directors in January 1993, DCA said it repurchased 675,900 shares of its common stock at an average price of $19.01 during the third quarter. DCA said it had $12.2 million remaining in the stock repurchase program and had 10,020,290 shares outstanding on March 31, 1993.
 Located 30 miles north of Atlanta, DCA designs, manufactures, markets and supports hardware and software products for personal computer (PC) networking environments that enhance productivity for PC users.
 Digital Communications Associates, Inc.
 Consolidated Statements of Income
 (In thousands except net income per share, unaudited)
 3 mos. ended March 31 1993 1992 Pct. chg.
 Net sales $55,668 $51,122 8.9
 Cost of sales 22,761 17,976 26.6
 Gross Profit 32,907 33,146 (.7)
 Selling, general and
 administrative expenses 23,406 20,332 15.1
 Research and development
 expenses 8,011 5,968 34.2
 Amortization of
 intangible assets 1,465 976 50.1
 Pacific Data Products
 goodwill write-off 59,917 (1) --- ---
 Pacific Data Products
 reorganization charge 3,194 (2) --- ---
 Income (Loss)
 From Operations (63,086) 5,870 (1174.7)
 Settlement of securities
 class action lawsuits - --- ---
 Disposal of assets (4,631) (3) --- ---
 Foreign exchange
 gains (losses), net (149) 588 (125.3)
 Interest and other
 income, net 668 1,296 (48.5)
 Income (Loss) Before
 Income Taxes (67,198) 7,754 (966.6)
 Income tax expense
 (benefit) (583) 1,705 (134.2)
 Net Income (Loss) $(66,615) $ 6,049 (1201.3)
 Net Income (Loss)
 Per Share $(6.40) $ 0.53 (1307.5)
 Average shares 10,406 11,363 (8.4)
 Consolidated Statements of Income
 (In thousands except net income per share, unaudited)
 9 mos. ended March 31 1993 1992 Pct. chg.
 Net sales $177,884 $150,428 18.3
 Cost of sales 73,438 54,587 34.5
 Gross Profit 104,446 95,841 9.0
 Selling, general and
 administrative expenses 68,511 57,477 19.2
 Research and development
 expenses 22,534 17,457 29.1
 Amortization of
 intangible assets 4,167 2,926 42.4
 Pacific Data Products
 goodwill write-off 59,917 (1) --- ---
 Pacific Data Products
 reorganization charge 3,194 (2) --- ---
 Income (Loss)
 From Operations (53,877) 17,981 (399.6)
 Settlement of securities
 class action lawsuits - (3,250) (100.0)
 Disposal of assets (4,631) (3) --- ---
 Foreign exchange
 gains (losses), net (678) (1,929) (64.9)
 Interest and other
 income, net 3,028 4,278 (29.2)
 Income (Loss) Before
 Income Taxes (56,158) 17,080 (428.8)
 Income tax expense
 (benefit) 1,846 3,757 (50.9)
 Net Income (Loss) $(58,004) $13,323 (535.4)
 Net Income (Loss)
 Per Share $(5.26) $ 1.18 (545.8)
 Average shares 11,026 11,316 (2.6)
 (1) Represents the write-off of the remaining goodwill
 associated with DCA's 1990 acquisition of Pacific Data
 Products (PDP) subsidiary.
 (2) Represents a one-time charge that includes provisions for a
 reduction in PDP's workforce and the write-off of other PDP
 assets.
 (3) Represents the write-off of the carrying value of certain
 DCA assets.
 Consolidated Statements of Income
 (Percent of Net Sales)
 3 mos. ended 9 mos. ended
 (in percentages) 3/31/93 3/31/92 3/31/93 3/31/92
 Net sales 100.0 100.0 100.0 100.0
 Cost of sales 40.9 35.2 41.3 36.3
 Gross Profit 59.1 64.8 58.7 63.7
 Selling, general and
 administrative expenses 42.0 39.8 38.5 38.2
 Research and development
 expenses 14.4 11.7 12.7 11.6
 Amortization of
 intangible assets 2.6 1.9 2.3 1.9
 Pacific Data Products
 goodwill write-off 107.6 --- 33.7 ---
 Pacific Data Products
 reorganization charge 5.7 --- 1.8 ---
 Income (Loss)
 From Operations (113.2) 11.4 (30.3) 12.0
 Settlement of securities
 class action lawsuits --- --- --- (2.2)
 Disposal of assets (8.3) --- (2.6) ---
 Foreign exchange gains
 (losses), net (.3) 1.2 (.4) (1.3)
 Interest and other income, net 1.2 2.5 1.7 2.8
 Income (Loss)
 Before Income Taxes (120.6) 15.1 (31.6) 11.3
 Income tax expense (benefit) (1.0) 3.3 1.0 2.5
 Net Income (Loss) (119.6) 11.8 (32.6) 8.8
 Product Group Sales As
 A Percent of Total Sales (Unaudited) 1Q93 2Q93 3Q93
 Workstation Communications
 Products (IRMA, Crosstalk,
 MacIRMA, and Unisys-related) 53.8 52.3 60.3
 Printer-Related Products
 (Pacific Data Products) 29.4 28.4 20.0
 Workgroup Communications
 Products (IRMAtrac,
 IRMALAN, Select and RLN) 16.8 19.3 19.7
 Total 100.0 100.0 100.0
 Consolidated Balance Sheets
 (In thousands, unaudited at Mar. 31)
 3/31/93 6/30/92
 Assets
 Current Assets
 Cash, cash equivalents and
 short-term investments $ 37,124 $104,686
 Accounts receivable 41,169 35,268
 Inventories 30,736 18,797
 Other current assets 13,172 9,649
 Total Current Assets 122,201 168,400
 Investments 22,000 20,000
 Net Property and Equipment 22,799 21,308
 Intangible Assets 38,364 77,797
 Other Assets 3,055 5,038
 Total $208,419 $292,543
 Liabilities and Stockholders' Equity
 Current Liabilities
 Accounts payable and accrued expenses $ 36,008 $ 32,128
 Income taxes payable 11,426 14,461
 Total Current Liabilities 47,434 46,589
 Stockholders' Equity 160,985 245,954
 Total $208,419 $292,543
 -0- 4/12/93
 /CONTACT: MEDIA: William B. Marks, 404-442-4520 (office), 404-987-9565 (home), or 404-533-6140 (beeper); ANALYSTS: Kathleen Howard, 404-442-4268, both of Digital Communications Associates/
 (DCA)


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

BN-KH -- AT002 -- 4591 04/12/93 07:48 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:Apr 12, 1993
Words:1428
Previous Article:U.S. HEALTHCARE SIGNS HOSPITAL AGREEMENT WITH COOPER HOSPITAL/UNIVERSITY MEDICAL CENTER
Next Article:SONIC REPORTS 36 PERCENT INCREASE IN EARNINGS FOR SECOND QUARTER OF 1993
Topics:


Related Articles
ASTROCOM CORPORATION ANNOUNCES SECOND QUARTER 1992 RESULTS
SPECTRUM SIGNAL PROCESSING REPORTS RECORD ORDERS AND SALES FOR THIRD QUARTER
ASTROCOM CORPORATION ANNOUNCES THIRD QUARTER 1992 RESULTS
IDB COMMUNICATIONS REPORTS RECORD THIRD QUARTER RESULTS
DCA PROVIDES INDICATION FOR THIRD FISCAL QUARTER
ASTROCOM CORPORATION ANNOUNCES THIRD QUARTER 1993 RESULTS
DIGITAL COMMUNICATIONS TECHNOLOGY CORPORATION REPORTS THIRD QUARTER REVENUES
WEGENER CORPORATION ANNOUNCES FISCAL THIRD QUARTER RESULTS
Nextel Reports Third Quarter Results.
China Digital Communication Group Reports Strong Third Quarter Financial Results.

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