MCI Communications Corp. yesterday reported a 20 percent profit increase for the second quarter on the strength of increased calling volume among two disparate classes of customers -- individuals and big businesses.
The Washington-based company reported earnings of $170 million (67 cents per share), compared with $142 million (56 cents) a year earlier.
Revenue for the quarter was $1.9 billion, up 19 percent from $1.6 billion a year before.
MCI President Bert C. Roberts Jr. said the results reflected strong growth in calling volume, particularly in residential and large accounts. The company also noted that per-share earnings rose despite its tax rate rising to 33 percent from 25 percent.
Although profits rose, MCI's stock price fell $2 on the over-the-counter market yesterday, to $36.37 1/2.
During the quarter, MCI also announced its first dividend and won its largest pay-phone contract to date -- a $375 million deal to provide operator and pay-phone services for U.S. Navy, Marine Corps and Coast Guard sites.
American Management Systems Inc., an Arlington-based information technology firm, said its second-quarter profit increased 377 percent on the strength of new contracts with federal agencies and a 20 percent jump in its telecommunications industry business.
AMS said it earned $1.77 million (18 cents) in the quarter, compared with $370,000 (3 cents) in the same period last year. Revenue for the quarter rose 12 percent, to $63.4 million from $56.8 million for the 1989 second quarter.
In the first half, earnings totaled $2.6 million (26 cents), compared with a loss of $506,000 for the similar period in 1989. Revenue rose 13 percent in the first half, to $121.6 million from the preceding year's $107.7 million.
Legent Corp., a Vienna-based company that creates software to help run IBM computers, said its profit for the fiscal third quarter ended June 30 increased 12.6 percent, to $8.56 million (40 cents) from $7.6 million (35 cents) in the same period a year ago.
Revenue for the quarter rose 22 percent, to $42.3 million from $34.7 million in the comparable period a year ago.
Earnings for the first nine months increased 39 percent, to $24 million ($1.11), after deducting first-quarter charges of $975,000 related to the acquisition of Business Software Technology Inc. Legent earned $17.3 million (80 cents) in the first nine months of fiscal 1989.
Revenue for the first nine months increased 23 percent, to $123 million from $100.1 million.
Chairman Joe Henson said Legent's performance reflected, in part, "the benefits of restructuring our domestic sales organization along product lines."
Cosmetic & Fragrance Concepts Inc., the Beltsville-based operator of 27 Cosmetic Center stores in the Washington area and Chicago, said its profit rose 95 percent on sales growth of 12 percent for its fiscal third quarter ended June 29.
Earnings for the quarter were $302,000 (10 cents), compared with $155,000 (5 cents) for the same period a year ago. Revenue totaled $18.1 million for the quarter, compared with $16.2 million a year ago.
For the first nine months, Cosmetic & Fragrance Concepts's profits increased 159 percent, to $1.3 million (43 cents) from $512,000 (17 cents) a year ago. Sales for the first three quarters rose 19.5 percent, to $58.3 million from $48.7 million.
Company executives attributed the gains to an aggressive sales plan and cost controls.
They also said construction on a new 103,000-square-foot leased office and warehouse complex in Savage, Md., is expected to be completed in the early fall. The new facility will consolidate distribution and improve operational efficiency, the company said.
Cosmetic & Fragrance Concepts said it also plans to open seven new stores before Christmas in the Washington area and in Chicago.
CRI Insured Mortgage Association, a real estate investment trust sponsored by Rockville-based CRI Inc., reported second-quarter taxable earnings of $4.2 million (21 cents a share).
No comparable-year ago figures exist, since the trust began operations last November. It specializes in U.S. government-insured and guaranteed mortgage investments.
For the first half, the trust earned taxable income of $13.2 million (66 cents).
C3 Inc., a Herndon-based computer company, reported a $37.5 million loss for the fiscal year ended March 31, compared with a $791,000 loss a year ago. It blamed the loss on the completion of two large maintenance contracts, inventory write-downs and lower profit margins on a new contract.
Revenue for the year fell 17 percent, to $56.8 million from the preceding year's $68.8 million.
In the fourth quarter, C3 lost $19.8 million, compared with a $1.6 million profit in fiscal 1989. Revenue fell 6 percent, to $14.4 million from $15.3 million in 1989.
O'Sullivan Corp., a Winchester, Va.-based plastics manufacturer, said its profit declined 18 percent in the first half and 6 percent in the second quarter.
The company reported second-quarter earnings of $5.1 million (31 cents), compared with $5.5 million (33 cents) in the 1989 second quarter. Revenue fell 6 percent, to $55.8 million from $59.4 million.
For the first half, O'Sullivan earned $7.9 million (48 cents), compared with $9.7 million (59 cents) in the year-ago first half. Revenue fell 12 percent, to $105.5 million from $120.4 million.
F&M National, a Winchester-based holding company for several banks in rural Virginia and West Virginia, said its earnings dropped 4 percent in the first half and were flat in the second quarter.
The bank company said it earned $2.6 million (30 cents) in the second quarter, compared with $2.61 million (30 cents) in the 1989 second period.
F&M earned $5.11 million (58 cents) in the first half, compared with $5.33 million (60 cents) in the same period a year ago.
Assets stood at $807.98 million as of June 30, up 10 percent from $734.6 million at the same point a year earlier.