DCI Telecommunications, Inc., an international supplier of telecommunications services, announced today the completion of the acquisition of privately owned Edge Communications, a Maryland-based prepaid phone card company. The transaction involves an exchange of common stock valued at $8 million.
Since its founding in 1994, Edge has been engaged in the prepaid telephone card business. It has achieved success by directing its activities primarily to urban and ethnic markets throughout the United States. An onsite Customer Service Division is equipped with a state of the art IVR (Interactive Voice Response) protocol. Its staff consists of bilingual representatives ready to service their diverse customer base. In 1997, its revenues reached $5.4 million, representing growth of 990% over 1996 results. Edge is currently profitable and is doing over $8 million in sales for the trailing twelve months ended March 31, 1998. For calendar 1998, its sales are projected to reach $15 million.
This acquisition, along with the recently announced Global Telecommunications transaction, will add $16 million in sales to the company for the trailing twelve month period. Daniel J. Murphy, DCI’s vice president, financial planning said, “Bolstered by the addition of Edge Communications to the DCI family, revenues should reach $45 million for the fiscal year ending March 31, 1999. We also should see a reduction in costs as a result of an increase in the volume of minutes.”
Edge has successfully marketed different prepaid phone card brands of its own design, customized to specific markets. Its marketing programs include alliances with an array of long distance carriers. WorldCom, Frontier, Enhanced Communications, the Telephone Company of Central Florida, and Cable & Wireless. In the coming months, Edge is planning to launch marketing campaigns for new products such as 800 number foreign origination, prepaid dial tone, prepaid pagers, and point-of-sale activation.
DCI Telecommunications is an international supplier of telephone services, including long distance service, prepaid telephone cards and Internet products. The company has an extensive distribution network throughout North America, Europe and the Far East and owns telephone switching facilities in Canada, the United Kingdom, Spain and Denmark. DCI recently announced a quarterly cash dividend of one cent per share. Through its buyback program the company has reacquired over one million shares of common stock.
The company recently reported sales of $6.2 million and $1.3 million in profit (13 cents per share), for the first nine months of fiscal 1998, and has 12 operating facilities, serving customers in eight countries.Details