CHARLTON, Mass., June 6 /PRNewswire/ -- FiberCore, Inc. (Nasdaq: FBCE), a
leading manufacturer and global supplier of optical fiber and preform for the
telecommunication and data communications markets, today announced the
acquisition of Data Communications Inc. ("DCI"), a privately-held company
located in Hyannis, MA. DCI will be merged into FiberCore's Automated Light
Technologies (ALT) subsidiary and will boost the breadth of the Company's
technical capabilities used in support of bringing optical fiber closer to the
end-user.
DCI designs, installs and maintains low cost fiber optic networks
primarily in the northeast for local area network applications, such as those
used in hospitals, universities, government and commercial buildings. When
combined with ALT's current product line, which includes early warning
detection systems that monitor and identify faults in fiber optic cables,
cable protection devices and electro-optical talk sets, FiberCore's ALT
subsidiary will have a proprietary base of technologies to help bring fiber to
the end user.
The purchase price of DCI was $1.1 million and consisted, almost
exclusively, of the issuance of 250,000 shares of FiberCore common stock, the
market value of which was determined in April when the agreement was reached.
Based on DCI's financial performance to date, the acquisition is expected to
add $2.5 million to revenues in 2001 and, through synergistic benefits and
cost reductions, add at least $0.01 a share to FiberCore's earnings in the
first full year of ownership.
Commenting on the opportunity for FiberCore, Dr. Mohd A. Aslami, President
and CEO said, "In order to fully utilize the large amount of bandwidth already
installed in the US and Europe, as well as in new installations currently
planned for and underway in emerging markets, end-users must be connected to
these superhighways. Only through this connection can there be seamless
access to the Internet. With fiber beginning to be deployed closer to the
end-user, we soon expect to see Fiber-to-the-Curb and eventually Fiber-to-the-
Home. We believe that this could create a market that exceeds the market for
long haul and metropolitan area networks."
Dr. Aslami continued, "The acquisition of DCI is another building block in
our strategy to benefit from this large market opportunity. DCI's presence in
the local area network market brings us closer to the end user without
competing with our cable customers. It also provides a direct outlet for our
EconGrade(R) fibers, which are ideally suited for this market. Furthermore,
through DCI, we gain a cost-effective outlet to market our existing ALT
product line."
FiberCore, Inc. develops, manufactures and markets single-mode and
multimode optical fiber preforms and optical fiber for the telecommunications
and data communications markets. In addition to its standard multimode and
single-mode fiber, FiberCore also offers various grades of fiber for use in
laser-based systems, to help guarantee high bandwidths and to suit the needs
of Feeder Loop also know as Metropolitan Area Network, Fiber-to-the Curb,
Fiber-to-the Home and Fiber-to-the Desk applications. Manufacturing
facilities are presently located in Jena, Germany and Campinas, Brazil.
For more information about the company, its products, or shareholder
information please visit our Website at: http://www.FiberCoreUSA.com or contact us
at: Phone - 508-248-3900 or by FAX - 508-248-5588 or E-Mail:
sales@FiberCoreUSA.com; investor_relations@FiberCoreUSA.com
Except for the historical matters discussed above, the statements in this
press release are forward looking and are made pursuant to the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995. They are
based on the Company's current expectations and are subject to a number of
risks and uncertainties. Actual results may differ materially from those
projected as a result of certain general economic and business conditions;
loss of market share through competition; introduction of competing products
by other companies; changes in Industry capacity; pressure on prices from
competition or from purchasers of the Company's products; availability of
qualified personnel; the delivery of an ability to commission new equipment as
scheduled; ability to obtain required financing; dependence on a limited
number of raw material suppliers; the loss of any significant customers; and
other factors detailed from time to time in the Company's filings with the
Securities and Exchange Commission.
SOURCE FiberCore, Inc.
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Related links:
http://www.FiberCoreUSA.com
CONTACT:
Dr. Mohd A. Aslami, President-CEO, or Steven
Phillips, CFO of FiberCore, Inc., 508-248-3900, or General Info.,
Alison Ziegler, Analyst Info., Peter Seltzberg, or Media Info.,
David Closs of The Financial Relations Board BSMG, 212-661-8030
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