Echoes of NCR follow AT&T - McCaw cheers

Article Abstract:

Certain AT&T investors are skeptical about AT&T's planned acquisition of McCaw Cellular Communications because the of the telecommunication giant's disappointing 1991 acquisition of NCR Corp. The NCR acquisition, which was AT&T's bid to enter the microcomputer market, turned out to have less-than-expected profitability. Some observers note that NCR's current $1 per share operating earning are a drag on AT&T's expected overall $3.15 per share earnings for the year. AT&T is taking a significant financial risk with the McCaw acquisition, and some investors are understandably wary given the NCR deal's lackluster performance. Analysts say McCaw, which is expected to earn only $150 million during 1994, is not expected to add to AT&T's profitability before 1997. Additionally, AT&T's issuance of some 200 million shares to finance the acquisition could place a strain on the market.

Electronic computers, Radiotelephone communications, Television broadcasting stations, Computer peripheral equipment, not elsewhere classified, Mergers, acquisitions and divestments, Telecommunications services industry, Telecommunications industry, T, Business planning, NCR Corp., NCR, American Telephone and Telegraph Co., Financial Analysis Software, Trends, Companies, Acquisition

---

McCaw Cellular had improvements in fourth quarter

Article Abstract:

McCaw Cellular Communications Inc reports a net loss of $288.5 million for FY 1989, a slightly smaller loss than was incurred in 1988. For the 4th qtr, McCaw posted a loss of $58.4 million on revenue of $152 million. For the same period in 1988, McCaw had a loss of $92.2 million on revenue of $60 million. McCaw, which recently acquired cellular firm LIN Broadcasting Corp, has never shown a profit in its brief history. In the cellular industry, cash flow and subscriber growth are considered the best indicators of a company's health. McCaw expects to have the rights to 59 million potential customers (POPs) following the completion of the acquisition of LIN. Cash flow was $19.1 million for the 4th qtr, compared with $500,000 for the year-earlier quarter. McCaw has been able to increase cash flow every quarter for six consecutive quarters.

Cellular telephones, Wireless telephones, Telecommunications, Cellular Radio, Telecommunications Industry, Losses, Fourth Quarter

---

Similar abstracts:

• Abstracts: WA rides out the changes. Huge gas projects in doubt. A silver lining at last for resources
• Abstracts: Ericsson doubles profit for quarter; cites cellular gear. Ericsson says pretax profit rose 16% in 4th period, but firm is cautious on '91
• Abstracts: Jobs cuts price, adds hard-disk drive in effort to spur Next computer sales. Slow start for Next doesn't worry Jobs
• Abstracts: IBM, Motorola plan radio link for computers. IBM, Microsoft develop pacts on PC software. IBM invites Motorola to join a project to boost U.S. semiconductor expertise
• Abstracts: AT&T weighs early retirement plan that may slash non-management staff. AT & T plans to trim staff by 8,500 in 1990; cuts for 1989 to total 25,000

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.