Analysis & Technology Inc. fourth quarter net earnings increase 15 percent to $.30 per share from $.26; Fiscal 1995 net earnings increase 11 percent.

NORTH STONINGTON, CONN.--(BUSINESS WIRE)--May 11, 1995--Analysis & Technology Inc. (NASDAQ/NMS:AATI) announced today that net earnings for the fourth quarter of fiscal 1995 ended March 31, 1995 increased 15 percent to $752,000, or $.30 per share, from $652,000, or $.26 per share, for the fourth quarter of fiscal 1994.

Revenues was $35,500,000, 6 percent ahead of the $33,660,000 reported for the same period a year earlier.

For the twelve months ended March 31, 1995, net earnings advanced 11 percent to $2,773,000, or $1.12 per share, on revenue of $132,257,000. For fiscal 1994, net earnings were $2,499,000, or $1.06 per share, on revenue of $130,362,000.

"The trend of improving operating earnings and gross margin in A & T's core defense business continued in the fourth quarter, primarily because of the increasingly high-technology nature of our work, operational enhancements that allow us to manage contracts more efficiently, and our success in negotiating attractive contracts during the year," said president and chief executive officer Gary P. Bennett.

"Based on the strength of contractual backlog at fiscal year end, which rose almost 8 percent to $402 million compared to prior year end, we expect our core defense operations -- and A & T as a whole -- to continue to perform well in the new fiscal year," Bennett said.

Bennett said that the On-Line Vehicle Registration System (OLRS) developed and operated by A & T's General Systems Solutions (GSS) subsidiary is fully operational in Connecticut, New York and New Jersey for lease and rental companies, and is also available to new car dealers in New York. "Transaction volumes are increasing and we are evaluating carious options to expand and accelerate marketing of the OLRS system. We expect software product development costs to be less in fiscal 1996, as we shift emphasis from initial implementation to expanding product applications," he said.

"A & T's strategic plan for long-term growth has evolved to reflect our experience and current opportunities, but its fundamental thrust remains the same -- to continue building A & T's core defense business while transferring our information technology and interactive multimedia design and production capability to new civil government and commercial markets," Bennett added. He noted that revenue from civil government and commercial accounts represented approximately 15 percent of total fiscal 1995 revenue, and that commercial work alone rose by more than 25 percent to about $11 million for the year.

Analysis & Technology Inc. provides engineering services, information technologies and interactive multimedia systems for government and commercial clients.

A summary of comparative results follows:

                                           Twelve Months
                                          Ended March 31,
                                       1995             1994

Revenues                           $132,257,000     $130,362,000
Operating Earnings                    5,618,000        5,330,000
Earnings before Income Taxes          4,807,000        4,344,000
Net Earnings                          2,773,000        2,499,000
Earnings per Common Share                  1.12            1.06
Weighted Average of Shares and
 Equivalent Shares Outstanding        2,469,000        2,367,000

                                           Three Months
                                          Ended March 31,
                                       1995             1994

Revenues                           $ 35,500,000     $ 33,660,000
Operating Earnings                    1,569,000        1,425,000
Earnings before Income Taxes          1,308,000        1,147,000
Net Earnings                            752,000          652,000
Earnings per Common Share                   .30              .26
Weighted Average of Shares and
 Equivalent Shares Outstanding        2,485,000        2,484,000

CONTACT: Analysis & Technology

Elaine Beckwith, 203/599-3910, x2630