Printer Friendly

OCOM ANNOUNCES OPERATING RESULTS FOR 1991

 OCOM ANNOUNCES OPERATING RESULTS FOR 1991
 NEW YORK, March 30 /PRNewswire/ -- OCOM Corporation (NASDAQ: OHCO)


(OCOM) announced today its operating results for the year ended Dec. 31, 1991:
 OCOM CORPORATION
 Year ended Dec. 31 1991 1990
 Revenues:
 Toll revenues $5,578,000 $4,269,000
 Transmission revenues 2,223,000 --
 Total 7,801,000 4,269,000
 Costs and expenses:
 Operating 3,448,000 2,267,000
 SG&A 1,320,000 726,000
 Total 4,768,000 2,993,000
 Operating income 3,033,000 1,276,000
 Depreciation and amortization (4,059,000) (2,379,000)
 Property tax assessment -- 678,000
 Interest and dividend income 604,000 --
 Net (loss) before
 income taxes (422,000) (425,000)
 Provision for income taxes 504,000 --
 Net (loss) (926,000) (425,000)
 Net (loss) per common
 share $(.14) $(.06)
 Weighted average shares 6,625,000 6,625,000
 OCOM Corporation was formerly a wholly owned subsidiary of Cellular Communications, Inc. (CCI). On July 25, 1990, CCI and PacTel Corporation (PacTel) entered into a merger and joint venture agreement whereby, on Aug. 1, 1991, CCI's and PacTel's cellular interests in Michigan and Ohio were contributed to a new joint venture equally owned by the two companies.
 In connection with the agreement, on July 31, 1991, CCI distributed to its stockholders the stock of OCOM which consisted of CCI's long- distance and microwave operations in Ohio. CCI stockholders received one share of OCOM's common stock for every six shares of CCI stock owned. Immediately prior to the distribution, OCOM received a cash contribution of $25 million from CCI. On Sept. 17, 1991, OCOM purchased approximately $20 million of CCI Series A preference stock.
 On July 1, 1991, OCOM began operating the private line microwave transmission service between the CCI Ohio system's cell sites and switches, and began selling interexchange long-distance service to the CCI Ohio system's cellular customers. OCOM and the joint venture entered into an agreement with an initial term of two years whereby OCOM provides private line services to the joint venture.
 It is currently expected that, sometime in the second half of 1992, the joint venture's cellular subscribers currently using OCOM will complete their equal access selection by ballot, and begin using, their choice of long-distance service provider. Since several of the long- distance companies that OCOM will be competing with in the balloting process are better known and have substantially greater resources than OCOM, it is anticipated that OCOM will retain a substantially reduced percentage of its customers.
 In connection with the formation of the joint venture, PacTel applied for an MFJ (Modification of Final Judgement) waiver from the U.S. District Court for the District of Columbia to allow the joint venture to provide interLATA cellular telephone service within certain metropolitan statistical areas in northern Ohio. Although the waiver was denied, an appeal of that denial is pending.
 Results of Operations
 The years ended Dec. 31, 1991 and 1990, are difficult to compare for various reasons. Although toll revenue increased from $4,269,000 to $5,578,000, 1991 includes approximately $1,221,000 in revenues from interLATA calling and voice mail services which will likely revert to the joint venture if the waiver appeal is successful.
 Transmission revenue increased from $0 to $2,223,000 as OCOM commenced operations on July 1, 1991, and began billing CCI and then the joint venture for transmission service.
 Operating expenses increased from $2,267,000 to $3,448,000 representing 53 percent and 44 percent of total revenues, respectively, due to the increase in the level of toll and private line transmission volume and the increase in property taxes.
 Selling, general and administrative expenses increased from $726,000 to $1,320,000 due to the increase in personnel and marketing costs.
 Depreciation and amortization expense increased from $2,379,000 to $4,059,000 because additional microwave equipment was installed to serve new cell sites and to increase transmission capacity.
 Interest and dividend income increased from $0 to $604,000 due to higher cash balances and accrued dividends on CCI preference stock.
 -0- 3/30/92
 /CONTACT: J. Barclay Knapp, chief operating officer, 614-325-2305, or Stanton N. Williams, 212-906-8448, both for OCOM/
 (OHCO) CO: OCOM Corporation ST: New York IN: TLS SU: ERN


CK-JP -- NY007 -- 2910 03/30/92 12:52 EST
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:Mar 30, 1992
Words:721
Previous Article:HUFFY CORPORATION PROJECTS FIRST QUARTER RESULTS
Next Article:BIOSPECIFICS TECHNOLOGIES RESPONDS TO ARTICLE CONCERNING ITS EARNINGS PROSPECTS
Topics:


Related Articles
CELLULAR COMMUNICATIONS ANNOUNCES OPERATING RESULTS FOR THIRD QUARTER 1991
CELLULAR COMMUNICATIONS INTERNATIONAL ANNOUNCES OPERATING RESULTS FOR THIRD QUARTER 1991
OCOM CORPORATION ANNOUNCES OPERATING RESULTS FOR THIRD QUARTER 1991
NYNEX REPORTS 1991 FOURTH QUARTER AND YEAR-END RESULTS
OCOM CORPORATION ANNOUNCES OPERATING RESULTS FOR FIRST QUARTER 1992
LINCOLN TELECOMMUNICATIONS ANNOUNCES SECOND QUARTER AND SIX MONTHS FINANCIAL RESULTS
CELLULAR COMMUNICATIONS INC. ANNOUNCES OPERATING RESULTS FOR THIRD QUARTER 1992
OCOM CORPORATION TO INVEST IN U.K. CABLE AND TELEPHONE PROPERTIES
OCOM CORPORATION TO MERGE INTO A SUBSIDIARY OF INTERNATIONAL CABLETEL, INC.; PUBLIC OFFERINGS FILED
INTERNATIONAL CABLETEL INCORPORATED ANNOUNCES OPERATING RESULTS FOR 1993

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