CINCINNATI-Despite soaring revenue and subscriber growth, USA Mobile Communications Inc. reported a sharp decline in net income for the second quarter, ended June 30, because of increases in depreciation and amortization costs associated with assets gained in recent acquisitions.
Net loss reached $7.6 million, or 53 cents per share, compared with a net loss of $707,000, or 7 cents per share for the corresponding quarter in 1994.
Second quarter revenue jumped 108 percent to $31 million, from $14.9 million a year ago.
Depreciation and amortization costs increased from $3.4 million second quarter 1994 to $10.9 million second quarter 1995. The company noted acquisitions of Premiere Page Inc. in December 1994 and Professional Communications Inc. in March are the chief reasons for the increase.
USA Mobile is on track with its planned merger with Arch Communications Group, expected to be completed third quarter.
CTS has positive quarter from telecom contracts
SEATTLE-Both income and revenue were up in the second quarter for Cellular Technical Services Co. Inc., but President Bob Dahut noted, “because of the long sales cycles that characterize our industry, we continue to expect uneven results on a quarter to quarter basis.”
For the period ended June 30, CTS’ net income reached about $493,000, or 4 cents per share, compared with a net loss of nearly $525,000, or 5 cents per share, second quarter 1994. Revenue for second quarter reached $3.77 million, a 233 percent increase from $1.13 million the corresponding period last year.
Primarily, the positive results can be attributed to revenues generated by contracts with Sprint Cellular Co. and McCaw Cellular Communications-part of AT&T Wireless Services-for CTS’ Real-Time Data Collection and Distribution platform and software applications products.
AirTouch reports income of $38 million for period
SAN FRANCISCO-AirTouch Communications Inc. reported both positive net income and net revenues for the second quarter ended June 30.
For the period, net income reached $38.7 million, or 8 cents per share. This is a 16.9 percent increase when compared with net income of $33.1 million, or 7 cents per share, posted in second quarter 1994.
Revenues ascended 32.4 percent to $369.1 million, compared with $278.7 million for the corresponding quarter last year.
AirTouch said it believes it will benefit in the future from strong customer growth in the company’s international operations, but associated operating losses and construction costs of its new systems in Italy, Spain and South Korea are expected to continue diluting earnings significantly this year and next.
Telular net revenues rise, losses reduced in quarter
BUFFALO GROVE, Ill.-Telular Corp. reported net revenues of $8.7 million for the second quarter, up 170 percent from $3.2 million a year ago. Net loss for the three-month period ended June 30, totaled $3.8 million, or 16 cents per share, compared with a net loss of $7.3 million, or 32 cents per share, second quarter 1994.
Telular said it attributes reduction in loss “to increased sales volumes, improved operational efficiencies and a reduction in amortization charges associated with an investment in the company by Motorola Inc. in 1993.”
Telular develops telecommunications interface technology that switches signals from phone systems, fax machines, computer modems, or monitoring devices to available wireless service.
