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AMPEX REPORTS SECOND QUARTER RESULTS

 AMPEX REPORTS SECOND QUARTER RESULTS
 REDWOOD CITY, Calif., Aug. 13 /PRNewswire/ -- Ampex Inc.


(NASDAQ: AMPX) reported today an 18.3 percent decline in net sales for the second quarter ended June 30, 1992, to $105.1 million, compared with $128.7 million for the same period a year ago. Net loss for the period totaled $16.6 million, or $1.19 per share, down from a net loss of $32.6 million, or $2.33 per share, during the second quarter of 1991.
 In making the announcement, Edward J. Bramson, chairman, said, "Our business is where we would expect it to be now, as we continue to reduce sales of lower-margin products. This emphasis on more profitable products, together with our successful cost reduction programs, more than offset the decline in sales for the quarter, resulting in an improved gross margin," he said.
 Gross profit as a percentage of sales increased to 30 percent from 23.4 percent a year ago.
 "We maintained the reduced level of selling and administrative expenses achieved in the first quarter of this year, while continuing our recurring investments in research, development and engineering at prior year levels," Bramson said. "These engineering expenditures are necessary to complete the introduction of recently announced 19 millimeter digital products for the television and mass data storage markets," he added. Research, development and engineering expenses declined $4.5 million from the prior year due primarily to a $3.9 million reduction in product start-up, rework and retrofit costs.
 Operating loss for the quarter declined 54 percent to $10.7 million from $23.4 million during the same period last year.
 For the six months ended June 30, 1992, net sales declined 20.5 percent to $213.9 million from $269.1 million in the same period last year. Net loss for the 1992 period totaled $26.6 million, or $1.90 per share, compared with a net loss of $56.4 million, or $4.03 per share a year earlier.
 The company completed its initial public offering of 3.2 million shares of Class A common stock in July 1992.
 Ampex Inc. is a leading worldwide producer of high performance scanning recording systems and magnetic tape media for the television, data storage and government markets. Throughout its nearly 50-year history, the company has received more than 1,700 patents worldwide as well as numerous awards for technical excellence.
 AMPEX
 Combined Statements of Operations
 (dollars in thousands, except share data)
 (unaudited)
 For the For the
 3 months ended 6 months ended
 June 30, June 30, June 30, June 30,
 1992 1991 1992 1991
 Net sales $105,143 $128,690 $213,898 $269,088
 Cost of sales 73,578 98,564 151,012 205,544
 Gross profit 31,565 30,126 62,886 63,544
 Selling and
 administrative 28,458 35,280 56,463 72,552
 Research,
 development and
 engineering 12,124 16,635 24,547 31,125
 Royalty income, net (1,131) (1,404) (12,222) (21,254)
 Amortization of
 intangible assets 2,860 2,993 5,788 5,981
 Restructuring charges -- -- -- 8,052
 Operating loss (10,746) (23,378) (11,690) (32,912)
 Interest expense 5,885 5,882 11,917 13,003
 Interest income (374) (772) (896) (2,543)
 Other expense, net (260) 214 603 4,759
 Loss before income
 taxes (15,997) (28,702) (23,314) (48,131)
 Provision for income
 taxes 603 3,861 3,269 8,313
 Net loss $(16,600) $(32,563) $(26,583) $(56,444)
 Loss per share $(1.19) $(2.33) $(1.90) $(4.03)
 Weighted average
 number of common
 shares outstanding 14,000,000 14,000,000 14,000,000 14,000,000
 AMPEX
 COMBINED BALANCE SHEETS
 (dollars in thousands)
 (unaudited)
 June 30, Dec. 31,
 1992 1991
 ASSETS
 Current assets:
 Cash and cash equivalents $ 31,097 $ 58,242
 Accounts receivable, net 77,887 105,201
 Inventories 69,497 71,566
 Deferred income taxes 5,013 5,013
 Other current assets 10,928 12,861
 Total current assets 194,422 252,883
 Property, plant and equipment 147,493 156,546
 Patents and licenses 24,578 27,257
 Goodwill 193,760 196,498
 Other assets 6,085 5,812
 Total assets $566,338 $ 638,996
 LIABILITIES and STOCKHOLDERS' EQUITY
 Current liabilities $212,064 $ 214,142
 Long-term debt 141,399 154,408
 Other liabilities 39,825 41,814
 Deferred income taxes 29,605 30,811
 Total liabilities 422,893 441,175
 Stockholders' equity 143,445 197,821
 Total liabilities and 566,338 638,996
 stockholders' equity
 -0- 8/13/92
 /CONTACT: Karen Schweikher of Ampex, 415-367-4111/
 (AMPX) CO: Ampex ST: California IN: CPR SU: ERN


RM -- SF019 -- 9750 08/13/92 15:10 EDT
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