DDI Corp expects a group net loss of $3.8m for the year to end- March 1996 because of slower-than-expected sales of Personal Handyphone Systems service. The enhanced Telepoint system took off like a rocket and is coming down just the same way – and increased sales incentive fees. Last November it projected group net profit of $66.5m and said its nine Personal Handyphone units would report a combined current loss of $456m during the year, instead of the earlier projected losses of $313m. DDI expects to have 700,000 subscribers by the end of the month, instead of the original estimate of 1.5m and the company now pays to retailers a sales incentive fee of about $190 per phone as a way to boost the number of subscribers. Despite the slower-than-expected start, DDI says it expects the nine units to become profitable in the 1998-99 business year as originally planned. Both parent and cellular phone units will still report record high current profit for the fiscal year.
