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OCOM CORPORATION ANNOUNCES OPERATING RESULTS FOR THIRD QUARTER 1991

    OCOM CORPORATION ANNOUNCES OPERATING RESULTS FOR THIRD QUARTER 1991
    NEW YORK, Nov. 14 /PRNewswire/ -- OCOM Corporation (NASDAQ: OHCO) announced today its operating results for the three and nine months ended Sept. 30, 1991:
                          OCOM CORPORATION
      Three months ended Sept. 30:             1991         1990
    Revenues:
      Toll revenues                        $1,487,000   $1,155,000
      Transmission revenues                 1,085,000           --
    Total                                   2,572,000    1,155,000
    Costs and expenses:
      Operating expenses                    1,012,000      671,000
      SG&A                                    326,000      152,000
    Total                                   1,338,000      823,000
    Operating income                        1,234,000      332,000
    Depreciation & amortization              (998,000)    (626,000)
    Interest & dividend income                214,000           --
    Income/(loss) before income taxes         450,000     (294,000)
    Provision for income taxes                153,000           --
    Net income/(loss)                         297,000     (294,000)
    Net income/(loss) per share                  $.04        $(.04)
    Weighted average shares                 6,922,000    6,625,000
      Nine months ended Sept. 30:              1991         1990
    Revenues:
      Toll revenues                        $3,787,000   $3,070,000
      Transmission revenues                 1,085,000           --
    Total                                   4,872,000    3,070,000
    Costs and expenses:
      Operating expenses                    2,612,000    1,869,000
      SG&A                                    724,000      556,000
    Total                                   3,336,000    2,425,000
    Operating income                        1,536,000      645,000
    Depreciation & amortization            (2,898,000)  (1,821,000)
    Interest & dividend income                214,000           --
    Income/(loss) before income taxes      (1,148,000)  (1,176,000)
    Provision for income taxes                153,000           --
    Net income/(loss)                      (1,301,000)  (1,176,000)
    Net income/(loss) per share                 $(.20)       $(.18)
    Weighted average shares                 6,625,000    6,625,000
    On July 31, 1991, Cellular Communications, Inc. (CCI) distributed to its shareholders the stock of OCOM Corporation (formerly Cellular Long Distance, Inc.) (OCOM).  Immediately prior to the distribution, OCOM received a cash contribution of $25 million from CCI.  On Sept. 17, 1991, OCOM purchased $20 million of CCI Series A preference stock. The CCI preferred stock has cumulative dividends of 7 percent per annum, a mandatory redemption on Jan. 6, 1993, and an optional redemption provision providing for earlier redemption of OCOM's shares upon agreement between CCI and OCOM.
    OCOM operates the private line microwave transmission service between the CCI Ohio System's cell sites and switches, and sells interexchange long distance service to the CCI Ohio system's cellular customers.  OCOM and the joint venture entered into an agreement whereby OCOM will provide private line microwave transmission service to the joint venture for two years.
    It is currently expected that by the second quarter of 1992, the cellular subscribers of the joint venture will select by ballot their choice of long distance service provider.  Since 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 current customers.
    RESULTS OF OPERATIONS FOR
    Three Months ended Sept. 30, 1991 and 1990
    Toll revenues increased from $1,155,000 to $1,487,000 primarily because of revenue from interLATA (local access and transport area) calls within the Northern Ohio region included in 1991 that did not exist in 1990.  OCOM currently is being paid by the joint venture for this toll traffic (approximately $400,000 during the three months ended Sept. 30, 1991).  Pending approval of a waiver of the Modified Final Judgment, which would allow the joint venture to carry these calls, it is expected that these payments will terminate.  In addition, approximately $125,000 for voice mail services was included in revenues for the third quarter of 1991 that was not included in 1990.  These payments are also expected to terminate when the waiver is granted.  Finally, the joint venture carries its own toll traffic within a LATA (intraLATA) and between waivered LATAs (interLATA waivered).  Approximately $150,000 representing intraLATA and interLATA waivered toll revenue was included as revenue for the third quarter of 1990, but is not included in the same period in 1991.
    Transmission revenue increased from $0 to $1,085,000 since OCOM commenced operations on July 1, 1991, and only then began billing CCI and then the joint venture for transmission service.
    Including private line microwave transmission revenue, OCOM had operating income before depreciation and amortization of $1,234,000 and $1,201,000, respectively, during the third quarters of 1991 and 1990.
    Operating expenses increased from $671,000 to $1,012,000 representing 33 percent and 39 percent of total revenue, respectively, due to increases in personnel and the increase in the level of cellular subscriber activity, and OCOM's expanded microwave network subject to the Ohio personal property tax.
    Selling, general and administrative expenses increased from $152,000 to $326,000 due to the increase in personnel, marketing costs, franchise taxes and the costs of servicing the larger subscriber base.
    Depreciation and amortization expense increased from $626,000 to $998,000 because additional microwave equipment was installed to serve new cell sites and increase transmission capacity.
    -0-                11/14/91
    /CONTACT:  J. Barclay Knapp, chief operating officer or Richard J. Lubasch, vice president-general counsel of OCOM, 212-319-7014/
    (OHCO) CO:  OCOM Corporation ST:  New York IN: SU:  ERN TS-PS -- NY010 -- 4272 11/14/91 09:02 EST
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Date:Nov 14, 1991
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