Digital Systems (Bahamas) Ltd. (DSBL).

And the company says strong earnings by DSBL will now make a significant impact on BSL's consolidated earnings.

"(It) is anti-dilutive, in that it has increased consolidated earnings per share based on 1994 results,'' said BSL president Mr. Nicholas Weare.

DSBL, much like BSL's local subsidiary Business Systems Ltd., is a computer firm offering systems and service. The Bahamas company was established in 1990 and is one of the two major systems firms providing multi-vendor maintenance and support services to an installed systems base, estimated by DSBL management to be worth more than $14 million.

DSBL's clients include the Bahamas' more sophisticated computer users, including most of the government-owned corporations, the Bahamas Telecommunications Corporation, Bacardi & Company Ltd., Cititrust and Citibank (Bahamas), Bahamas Electricity Corporation and major wholesaler/retailer Solomon Brothers.

In 1994, the company had a net profit of $330,000 on revenues of $2.5 million, a return of over 13 percent. It employs a staff of 11.

Mr. Weare, who formed DSBL with BSL chairman, Mr. William Midon and their Bahamas-based partners, said the acquisition represented the first major step in BSL's plans to expand its products and services in Latin America and the Caribbean.

DSBL has built a reputation for high quality products and services, representing products from Digital, 3-COM, Proteon, Racal, Hewlett Packard and Microsoft. In addition to marketing high end systems, DSBL also offers full support for UNIX and TCP/IP open systems, providing an ideal platform upon which to base further expansion, especially in the area of value-added communications products and services.

In particular, Mr. Weare said,"DSBL offers added potential for the introduction of BSL's highly successful Internet services. It has been our experience that commercial users of Internet require a wide range of additional products and services which enable corporate clients to connect their systems to Internet in a secure, but transparent manner.'' BSL last year established a local gateway company, Internet (Bermuda) Ltd. for Bermuda subscribers. The company believes that local Internet networks, which can be managed and supported remotely, will allow more rapid and flexible regional expansion than traditional computer systems and services.

DSBL installed the first major private fibre-optic network in the Bahamas in 1992 and installed the country's largest single computer installation with over 400 users in 1993. During that year, the company formed a separate division, the Systems Resource Group, to undertake multi-vendor integration projects in a market increasingly interested in cost-efficient, client-server technology applications.

BSL Holdings Ltd. was incorporated in Bermuda May 1994 and is traded on the Bermuda Stock Exchange. The firm employs 40 people.