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DSC REPORTS FIRST QUARTER RESULTS

 DSC REPORTS FIRST QUARTER RESULTS
 DALLAS, April 24 /PRNewswire/ -- For the three months ended


March 31, 1992, DSC Communications Corporation (NASDAQ-NMS: DIGI) reported revenue of $102.7 million and a net loss of $10.5 million, or $0.25 per share, compared to revenue of $133.8 million and net income of $4.1 million, or $0.10 per share for the three months ended March 31, 1991.
 The company's revenue and operating results continue to be negatively impacted, as in the last half of 1991, by adverse economic conditions and slower than anticipated deployment of the company's new optical access product. The company's backlog, however, grew by over 70 percent, from year-end levels, during the first quarter of 1992, including major orders for optical access products and signal transfer points.
 The 1992 first quarter operating loss was lessened due to cost reductions achieved in the second half of 1991, although gross profit was adversely affected by the lower revenue volume. Foreign exchange losses of approximately $1.1 million also increased the net loss in the 1992 first quarter due to fluctuations between the Japanese yen and the U.S. dollar.
 The company has continued its commitment to its optical loop technology products (access products) in anticipation of significant future customer deployment. Major supply agreements have been recently signed with several customers, however, volume shipments did not occur in the 1992 first quarter. As a result, the company recorded an operating loss for its access products' division in the first quarter, as was experienced for the full year 1991. Once volume deliveries of access products occur, the company's operating performance is expected to improve significantly.
 Efforts to reach a senior debt restructuring satisfactory to the company, including maturity extension and increased borrowing availability, has continued and the company expects an agreement will be reached. In the meantime, the company's continued cash management efforts helped to increase cash balances at March 31, 1992, to $37.8 million, up $11.4 million from the year end level.
 DSC chairman and chief executive officer, James L. Donald stated that, "The 1992 first quarter results indicate that we are continuing to operate within a difficult economic environment. Although this condition has depressed revenue levels, we have been able to limit our operating losses by reducing expenses and improving efficiency. Particularly encouraging was the growth in order backlog of over 70 percent at March 31, 1992, from year end levels. This represents real, measurable progress, and positions the company to return to profitability."
 DSC Communications Corporation is a leading designer, developer, manufacturer and marketer of digital switching, transmission and private network system products for the worldwide telecommunications marketplace.
 DSC COMMUNICATIONS CORPORATION AND SUBSIDIARIES
 Condensed Consolidated Statements of Operations
 (In thousands, except per share data)
 Three months ended
 March 31,
 (unaudited)
 1992 1991
 Revenue $ 102,716 $ 133,796
 Operating costs and expenses:
 Cost of revenue 72,268 84,493
 Research & product development
 expense 12,257 14,656
 Selling, general and
 administrative expense 19,758 22,922
 Other operating costs 1,110 1,110
 Total operating costs and
 expenses 105,393 123,181
 Operating income (loss) (2,677) 10,615
 Financing costs and other, net 7,802 5,025
 Income (loss) before income
 taxes (10,479) 5,590
 Income taxes -- 1,509
 Net income (loss) $(10,479) $ 4,081
 Income (loss) per share:
 Net income (loss) $ (0.25) $ 0.10
 Average shares used in
 computation 41,735 42,349
 DSC COMMUNICATIONS CORPORATION AND SUBSIDIARIES
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (in thousands)
 March 31, Dec. 31,
 1992 1991
 (unaudited)
 Assets
 Cash and cash equivalents $ 37,750 $ 26,366
 Receivables 103,778 116,784
 Inventories 130,277 139,039
 Other current assets 27,068 24,666
 Total current assets 298,873 306,855
 Property and equipment, net 154,360 162,521
 Capitalized software
 development costs 29,321 29,563
 Cost in excess of net assets of
 businesses acquired, net 64,954 65,859
 Other assets 36,682 35,116
 Total assets $ 584,190 $ 599,914
 Liabilities & shareholders' equity
 Current liabilities $ 296,055(A) $ 301,864(A)
 Noncurrent liabilities 123,368 123,364
 Shareholders' equity 164,767 174,686
 Total liabilities and
 shareholders' equity $ 584,190 $ 599,914
 (A) Includes $168,189 and $169,676 of senior debt subject to accelerated maturity at March 31, 1992 and Dec. 31, 1991, respectively.
 -0- 4/24/92
 /CONTACT: Terry Adams of DSC Communications, 214-519-4358/
 (DIGI) CO: DSC Communications Corporation ST: Texas IN: TLS SU: ERN


SH -- NY082 -- 2604 04/24/92 15:35 EDT
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Date:Apr 24, 1992
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