AT&T's 10% rise in net masks weakness; consumer call volume falls as rivals make inroads; stock price plunges 4%

Article Abstract:

AT&T's calling volume was significantly lower during its 2nd qtr 1996, and revenue growth slowed for the period, although the company's net income increased by 10 percent. AT&T is facing increased competition from smaller companies in the long-distance market. Major rivals MCI Communications and Sprint Corp posted strong earnings for the period. AT&T is in the process of reorganizing and is spinning off its computer and telecommunications-equipment businesses. The company's profits rose to $1.49 billion for the quarter, compared with $1.36 billion for last year's same period. The costs of spinning off its computer and equipment businesses, as well as closing down other operations, reduced earnings by two cents per share. Revenues increased to $13.03 billion from $12.76 billion. Several analysts reduced their ratings of AT&T's stock following the report, and the price of the stock dropped $2.25 to $54.125 per share on the New York Stock Exchange.

Wired Telecommunications Carriers, Long Distance Telephone Svc, Finance, Telecommunications services industry, Telecommunications industry, AT&T Corp., T, Long distance telephone services, Company sales and earnings, Company Sales/Revenue, Company Earnings/Profit

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Sprint, Kinko's plan network for video calls

Article Abstract:

Kinko's Service Corp and Sprint Corp plan to offer a public video-conferencing network. The network will provide video call service from any of 650 Kinko's copy centers around the world. Sprint wins a battle against competitors AT and T and MCI Communications Corp to provide video-conferencing transmission on the largest network in the world. The companies will begin offering the service by 1995, but by Apr 1994 100 Kinko's centers will be implementing the service. Success of the project is expected since video-conferencing rooms are more numerous now than they were in the 1970s when IBM attempted to offer the service, and the service is more affordable now. Picturetel Corp is the chosen supplier of video equipment for the project. Callers from Kinko's facilities will be able to reach someone at another Kinko's center or at any company on the Sprint video-conferencing network.

Accounting, auditing, & bookkeeping, Management services, Holding companies, not elsewhere classified, Services, Marketing, Telecommunications equipment industry, Sprint Corp., Videoconferencing, Cooperative Agreements, Kinko's Service Corp.

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