The RCR Stock Index lagged behind the Dow, as the national indices experienced a turbulent year that was marred by large falls. Financial trouble in Asia caused large sell-offs during the fourth quarter as the Dow retreated from the record-breaking 8000 level.
The wireless basket of stocks lagged well behind the national indices during 1997 trading, as the RCR Stock Index gained a modest 15.81 percent, or 170.62 points, to close the year at 1250.07. In comparison, the Dow Jones Industrial Average gained 22.64 percent, or 1,459.98 points, to close at 7,908.25. The S&P 500 pushed even higher than the Dow, as it gained 31.01 percent to close the yearly trading session at 970.43.
World Access Communications Inc. watched its stock price rocket into higher territory as the company posted record third-quarter gains due to two key acquisitions in 1997. Shares of World Access jumped 198.44 percent last year to close at a price of $23.88 per share. The company reported third-quarter 1997 sales of $27.4 million, a $15 million, or 121 percent, increase compared with the $12.4 million in sales during the comparable 1996 period. For the three months ended Sept. 30, 1997, World Access realized net income of $4.3 million, a $2.7 million, or 166 percent, increase compared with third quarter 1996 net income of $1.6 million. Steven A. Odom, chairman and chief executive officer, said, “We are extremely pleased to report record sales and net income for World Access during the third quarter of 1997. Of the $15 million increase in total sales, approximately $8.7 million was contributed by the company’s two business acquisitions this year, Cellular Infrastructure Supply Inc. and Galaxy Personal Communications Services Inc.”
Lucent Technologies Inc. was the indices’ largest dollar gainer as industry growth topped 20 percent. Lucent’s stock price rose $33.63 per share to close the yearly trading period at a price of $79.88. Lucent acquired Octel Communications Corp. during the year, which the company expects will complement its messaging marketplace. “We’re delighted we can now bring our customers all the advantages of the Lucent/Octel combination,” said Bill O’Shea, president of Lucent’s Business Communications Systems unit.
Shares of Tessco Technologies, a leading distributor to the cellular telephone, paging and mobile radio dispatch markets, headed south last year as the company’s financial strength began to decline. Tessco’s stock lost 46.94 percent of its value to close the year’s trading at a price of $19.50 per share. Revenues for the first six months of the 1998 fiscal year totaled $67.3 million, declining 10 percent from $74.8 million for the corresponding prior year period. Gross profit of $17.6 million for the six months represented a 5 percent decrease from $18.6 million in the prior year period. Net income for the six months was $1.6 million, or 41 percent below the $2.7 million for the corresponding prior year period.
This data was compiled by Nordby International and is summarized on page 30.
