MCI Communications Corp. reported yesterday a drop of nearly 50 percent from the previous year in 1990 profits. But the company said it had record revenues for the year. MCI blamed the decline in profits on a half-billion dollar investment in updated digital switching equipment.
This Washington, D.C.-based long-distance company reported net income of $127 million for the three months that ended Dec. 31, up from $108 million in the same 1989 period. For the year, net income dropped to $299 million from $558 million.
MCI said full-year profits would have totaled $630 million, or $2.48 per share, had the company not taken a $550 million pretax asset write-down for money spent to speed up its switch to a totally digital network. A spokeswoman said MCI had planned to convert completely from analog switching equipment by 1993 but now plans to have the changeover finished by the end of this year.
MCI is continuing to expand its family of telecommunications services both in the United States and abroad, offering expanded international calling, several new data services and 800 lines for residential customers.