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TEL ANNOUNCES YEAR-END RESULTS

 AMERICAN FORK, Utah, April 19 /PRNewswire/ -- TEL electronics inc. (NASDAQ-Small Cap: TELS) reported today financial results for the year ended Dec. 31, 1993. Consolidated net sales for 1993 were $4,266,509, up 54 percent over 1992 primarily due to an acquisition. A consolidated net loss of $10,125 was reported due to a slowdown in telecom sales, but primarily due to expenses related to the acquisition of: Computer Express, of Dallas in mid-1993; Micro Station Inc., of San Antonio, which consumed time and energy in 1993 but closed in early 1994; and Hash-Tech Inc., of Santa Clara, Calif., a major effort beginning April, 1993, and closed March 31, 1994. The loss consisted of a net operating loss and an extraordinary gain of $384,166 from mandated accounting changes relating to the probable future tax benefits of the company's loss carryforwards.
 Dr. John L. Gunter, TEL's president, stated: "TEL ended the 1993 year in the best shape of its history, in spite of an operational loss for the year. The efforts and expenses related to three major acquisitions were expected and planned, as the company built a broader and deeper foundation for the future. We were surprised by the magnitude of the slowdown we faced in the telecommunications industry, resulting in lower than expected revenues. The slowdown was prompted by huge changes in telephone numbering and dialing plans to take effect in early 1995. However, TEL's base business is now running at approximately double last year's rate, based upon first quarter's sales, and the slowdown should provide larger sales in 1994 as dealers and customers move aggressively to make up for their lack of purchases in 1993 and to be ready for 1995. For example, our largest dealers bought about 20 percent more product during the first quarter of 1994 than they did during the entire 1993 year, so 1994 should be a good revenue year.
 Stephen M. Nelson, TEL's chief financial officer, stated: "TEL acquired two new companies in the first quarter of 1994: Micro Station Inc., which will add $1 million in annual revenues; and Hash-Tech Inc., which will add well over $3 million in annual revenues. TEL has doubled the number of its employees from 50 to 100. Excluding any other acquisition, management projects revenue of $10.5 million and net income from operations of 8 percent for fiscal 1994, or about $840,000 prior to any extraordinary items. Based upon 3.5 million shares outstanding, earnings per share are thus expected to be $.24 for 1994."
 TEL electronics inc. designs, builds, sells and services microprocessor-based computer systems for telecommunications applications in various industries, particularly the lodging industry. TEL's diversified line of telephone call management products are also used in business, education and government applications, where they cost-effectively bill and record telephone system usage. TEL also supplies interactive voice response and processing systems, a hotel- motel front desk system and telecommunications specialty products. TEL sells and services computer and network products through Computer Express, a value-added reseller subsidiary in Dallas, and Micro Station, a systems integrator subsidiary in San Antonio. Micromega Corp., a Utah research and development subsidiary, provides contract services for TEL and other companies. Medtech Inc., another subsidiary in Utah, provides research-phase medical electronics products internationally. TEL products are distributed through a national network of dealers and resellers and through subsidiary offices.
 -0- 4/19/94
 /CONTACT: Stephen M. Nelson, CFO, and Investor Relations, of TEL Electronics, 801-756-9606/
 (TELS)


CO: TEL electronics inc. ST: Utah, Texas, California IN: CPR SU: ERN

JS-MF -- LA032 -- 8199 04/19/94 13:07 EDT
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Publication:PR Newswire
Date:Apr 19, 1994
Words:595
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