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News > Companies
Sprint wrestles Y2K bug
August 10, 1998: 6:19 p.m. ET

Long distance provider says it will incur $200M in Year 2000 expenses
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NEW YORK (CNNfn) - Sprint Corp., the nation's No. 3 long-distance provider, said Monday it expects to incur about $200 million in expenses in 1998 and 1999 to complete its Year 2000 compliance program.
     With less than 18 months remaining before the turn of the century, the so-called "millennium bug" threatens to trip up corporate computer systems across the globe unless programs are devised in time to counter the threat before the calendar rolls over to Jan. 1, 2000.
     Because many computers define dates by the last two digits of the year -- in this case '00' -- many computer applications will fail to identify the date change, resulting in a potential flood of mass system malfunctions that could affect Sprint's customers and vendors.
     In a filing Monday with the Securities and Exchange Commission, Sprint said the problem affects its installed computer systems, software applications and other business systems that are time sensitive and may therefore fail to recognize the year 2000.
     Sprint said it began tests of its computer systems in the third quarter of 1998 and expects to complete them in 1999. The company said it had contacted firms with which it does business to ensure that they are in compliance as well.
     "Sprint is using both internal and external sources to identify, correct or reprogram, and test its systems for Year 2000 compliance," the company said in its filing.
     "If compliance is not achieved in a timely manner by Sprint or any significant related third party," the company noted in the filing, "the Year 2000 issue could have a material impact on Sprint's operations."
     Sprint said it was also developing contingency plans "to mitigate to the extent possible any significant Year 2000 non-compliance."
     In its second quarter ended June 30, Sprint reported net income of $213.5 million, or 49 cents a diluted share, down from $255.9 million, or 59 cents a share, a year earlier.
     The results, which beat Wall Street estimates by 2 cents, included an after-tax loss of 53 cents a share from joint ventures and emerging businesses.
     Sprint also is involved in a joint venture with cable giants Comcast, Cox Communications and Tele-Communications Inc. to build a nationwide wireless communication network.
     Shares of Sprint (FON) ended down 9/16 at 68-1/8 Monday on the New York Stock Exchange.Back to top

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.