Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, March 27, 1991 TAG: 9103270112
SECTION: BUSINESS PAGE: A-3 EDITION: METRO
SOURCE: George Kegley
DATELINE: LENGTH: Medium
The Roanoke fiber optics network company reported a 28 percent jump in revenues to $24.4 million and a threefold increase in earnings to $1.1 million last year.
Although business has slowed with the recession, the outlook is for a 12 percent growth in sales in 1991, Dick Popp, president, said after the meeting.
"We're a little bit cautious, based on the economy," he said. Many of the company's products require large capital expenditures by Fortune 100 companies, which are deferring spending, Popp said. Some FiberCom salespeople have reported layoffs at customer companies, he added.
Also, the federal government, source of 70 percent of FiberCom's sales last year, has an uncertain spending pattern, Popp said. He expects some of that to change quickly now that the Persian Gulf War has ended. But other government purchases, such as those intended for the space program, have been cut.
Popp expects government business will be down to a 55 percent share this year.
Despite the slowdown, he said, the company is "running hard" in the first quarter and growth will come "as long as we control expenses."
FiberCom's sales of its new Ringmaster line for a high-speed communications network probably will be a little lower than expected as a result of the recession, he said.
In the past year, the company added 19 employees, bringing its work force to about 200. A small increase is anticipated this year, depending on the economy, he said.
The company is owned by about 50 regional investors and two capital venture companies in Boston and Palo Alto, Calif.
by CNB