FiberCore, Inc. (Nasdaq: FBCE), a manufacturer and global supplier of optical fiber and preform for the telecommunication and data communications markets, 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.
About FiberCore:
FiberCore, Inc. develops, manufactures and markets single-mode and multimode optical fiber preforms and optical fiber for the telecommunications and data communications markets. For more information, visit www.FiberCoreUSA.com.