Printer Friendly

SUPERIOR TELETEC EXPECTS FIRST QUARTER EARNINGS RISE; ANNOUNCES PLANS TO SELL THREE PRODUCT LINES

 SUPERIOR TELETEC EXPECTS FIRST QUARTER EARNINGS RISE;
 ANNOUNCES PLANS TO SELL THREE PRODUCT LINES
 ATLANTA, June 16 /PRNewswire/ -- Superior TeleTec (AMEX: STT) announced today that it expects to report higher sales and earnings for its first fiscal quarter of 1993, which ends June 28, 1992. Sales are expected to increase approximately 3 percent over the $38.4 million reported for the year-ago quarter. Earnings per share are expected to increase to between $0.17 and 0.20 for the current quarter, as compared with $0.10 per share for the same period of fiscal 1992.
 Superior also announced that it intends to sell three product lines: the Wilcom test equipment line, the telephone line treatment equipment business and its FREE-SPAN (TM) aerial fiberoptic cable line. Superior has signed a letter of intent with North Atlantic Industries, Inc. (NASDAQ: NATL) to sell substantially all of the assets associated with its test equipment and line treatment businesses. The company is also negotiating with a fiberoptic cable manufacturer which is a major supplier to the power utility industry for the sale of inventory, equipment and technology used in manufacturing its FREE-SPAN product line. Both transactions are subject to a number of contingencies including completion of due diligence, corporate and regulatory approvals, and negotiation of definitive purchase agreements. If consummated, Superior expects these sales would generate net proceeds of approximately $11 million. The company would use the proceeds to reduce debt which equalled $24.4 million at March 29, 1992. Superior would realize a gain on both of these transactions which would be recognized in the second quarter of fiscal 1993. Together, the three product lines accounted for approximately 12 percent of Superior's annual fiscal 1992 sales. The sale transactions will cause the three product lines to be classified as discontinued operations in the company's financial statements.
 While all of Superior's business units improved relative to the prior year's first quarter, more than 50 percent of the anticipated earnings growth is attributable to the copper telephone cable and wire business, which has shown strength across its entire customer base. The 1993 first quarter results will therefore reflect a sharp increase in pretax income from continuing operations, which is expected to be approximately 40-50 percent higher than the $1,500,000 which will be reported (after reclassification for discontinued operations) for the first quarter last year. Because of an increase in income taxes due to the absence in the current year of certain tax benefits realized in the 1992 period, after-tax net income before discontinued operations is expected to be nominally higher than the year-ago first quarter. Additionally, the discontinued operations are expected to produce a small profit of $0.01 to $0.03 per share in the current quarter, versus a loss of approximately $0.05 per share in the year-ago.
 Superior's President, Chief Executive Officer and Chairman, James R. Kanely, stated, "The sales will substantially improve our balance sheet and allow us to concentrate our efforts in two areas, our core copper cable and wire business and our developing business for the VAD-9600, our digital voice
and data multiplexing system." The recent announcements of various technical developments which will extend the useful life of copper cable reconfirms our long standing and often stated belief that copper cable will be used for many years as the distribution medium in the telecommunications network.
 "We expect to substantially increase our sales and marketing activities for the VAD product area by redeploying resources which were previously tied up in the sale of test equipment and in the sale of FREE-SPAN to the power utility market which has never been a strategic market for Superior."
 Superior Teletec Inc. is a diversified telecommunications company serving primarily the independent telephone holding companies and the Regional Bell Operating Companies.
 -0- 06/16/92
 /CONTACT: David S. Aldridge of Superior TeleTec, 404-953-8338, or Lynn Morgan, 212-986-5900, or Ken Pieper, 214-701-8851, both of Morgen- Walke Associates, for Superior Teletec Inc./
 (STT) (NATL) CO: Superior TeleTec Inc.;North Atlantic Industries ST: Georgia IN: TLS SU: ERP


AH-LD -- NY005 -- 0470 06/16/92 08:01 EDT
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:Jun 16, 1992
Words:681
Previous Article:GAINSCO INCREASES EARNINGS GOALS AND ANNOUNCES THE COMMENCEMENT OF COST SAVING MEASURES IN ITS SOFTWARE SUBSIDIARY
Next Article:DEJA GETS "GREEN" LIGHT WITH $2.5 MILLION CAPITAL INFUSION; ENVIRONMENTAL ACTIVIST TEAMS UP WITH FORMER AVIA EXECUTIVES
Topics:


Related Articles
SUPERIOR TELETEC REPORTS FISCAL 1992 EARNINGS
SUPERIOR TELETEC ANNOUNCES FIRST FISCAL QUARTER RESULTS
THE ALPINE GROUP, INC. AND SUPERIOR TELETEC INC. ANNOUNCE AMENDMENT TO MERGER AGREEMENT
THE ALPINE GROUP, INC., AND SUPERIOR TELETEC INC. ANNOUNCE SHAREHOLDER APPROVAL OF MERGER
THE ALPINE GROUP, INC. AND SUPERIOR TELETEC INC. ANNOUNCE COMPLETION OF MERGER
THE ALPINE GROUP REPORTS SECOND QUARTER RESULTS
THE ALPINE GROUP, INC. REPORTS THIRD QUARTER AND NINE MONTHS FINANCIAL RESULTS
THE ALPINE GROUP INC. ANNOUNCES FISCAL 1994 FOURTH QUARTER AND YEAR END RESULTS
ALPINE'S SUPERIOR TELETEC SUBSIDIARY OBTAINS THREE YEAR SUPPLY AGREEMENT WITH GTE
THE ALPINE GROUP, INC. ANNOUNCES FISCAL 1995 SECOND QUARTER RESULTS

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