Andyne Computing reports second quarter and six-month results; Revenues increase 23 percent.

KINGSTON, Ontario--(BUSINESS WIRE)--April 26, 1995--Andyne Computing Ltd. (NASDAQ: ADYNF, TSE: ADY) today reported record revenues for the second quarter of fiscal 1995 ended March 31, 1995, of $2,951,000 (CDN), compared with revenues of $2,402,000 (CDN) in the same period of the previous fiscal year.

The company also reported net income of $85,000 (CDN), or $0.01 per share, compared with net income of $443,000 (CDN), or $0.07 per share, for the previous fiscal year's second quarter.

For the first six months of fiscal 1995 ending March 31, 1995, the company reported revenues of $5,372,000 (CDN), an increase of 26 percent compared with revenues of $4,275,000 (CDN) for the first six months of fiscal 1994. The company also reported net income of $109,000 (CDN), or $0.02 per share, compared with net income of $756,000 (CDN), or $0.12 per share, for the previous fiscal year's six-month period.

"Three positive developments boosted revenues to an all-time high in the second quarter," said A. Cameron Thompson, chairman and chief executive officer of Andyne. "International sales through distributors other than Computer Associates increased nearly seven-fold, from $114,000 to $790,000, with distribution channels opened in Germany, Australia, Brazil, Argentina and Italy; reseller sales were up 204 percent, from $142,0000 to $433,000; and direct sales increased 25 percent, from $1 million to $1.3 million."

We are pleased with the strong sales growth in the second quarter, considering that the single largest revenue-contributor in our distribution channel in fiscal 1994--Ingres/Computer Associates, which accounted for approximately 42 percent of our revenues in the second quarter last year--contributed only nine percent, or $219 thousand, in the second quarter of fiscal 1995. And, it is important to note that Computer Associates' second-quarter contribution to Andyne's revenues was up 17 percent over the first fiscal quarter of 1995.

"We anticipate an increase in Computer Associates' contribution to our revenues in the remainder of the fiscal year," continued Thompson, "but we do not expect Computer Associates' contribution to our fiscal 1995 revenues to approach the 33 percent contribution in fiscal 1994. Therefore, we intend to continue expanding our own sales and marketing efforts in the second half of fiscal 1995."

Sales and marketing expenses as a percentage of sales increased from 31 percent in the second quarter of fiscal 1994 to 43 percent in the second quarter of fiscal 1995, the result of the Company's continuing investment in marketing and sales personnel (for example, Andyne's direct sales force numbered 31 at second quarter's end, compared with 20 one year ago) as well as expanded advertising and promotional activities, including participation in more key industry trade shows.

As a percentage of sales, general and administrative expense increased from 16 to 25 percent for the quarter, primarily the result of adding administrative personnel to support Andyne's expansion.

"A highlight of the second quarter, certainly, was the shipping of a major new product, PaBLO for Windows, on schedule," Thompson continued, "which in combination with recently announced enhancements to our mainstay product, Andyne GQL, ensures Andyne not only has the best query and reporting tool in the market today -- Andyne GQL -- but now also the most powerful decision-support software tool for multidimensional analysis -- Andyne PaBLO.

Andyne is the leader in developing Managed Query Environment (MQE) software applications for the client/server market. Andyne's products -- Andyne GQL and Andyne PaBLO -- empower non-technical PC-users in Fortune 500 companies around the world to access, report and conduct multidimensional analysis of information assets that reside in their corporate databases, while simultaneously giving Information Services (IS) managers the power to control user access. The company's products - designed for use on major desktop operating systems (Microsoft Windows, Apple Macintosh and UNIX/Motif), with relational databases (CA/Ingres, Oracle, Sybase and IBM DB2) and associated networking middleware -- are distributed worldwide through its direct sales force and selected value-added resellers (VARs), OEMs and distributors. Andyne has licensed its software to more than 45,000 users at 2,500 large and medium-sized organizations in a wide variety of industries around the world.

                       ANDYNE COMPUTING LIMITED
           (Amounts in thousands Can., except per-share data;
              reported in accordance with Canadian GAAP)

                           Three Months Ended       Six Months Ended
                           Mar. 31    Mar. 31      Mar. 31    Mar. 31
                            1995       1994         1995       1994

Sales                      $2,951     $2,402       $5,372     $4,275
Cost of Sales                 390        264          729        416
Gross Margin                2,561      2,138        4,643      3,859
Operating Expenses
  Sales and Marketing       1,260        747        2,426      1,339
  Research and Development    381        210          636        433
  General and Administrative  750        398        1,277        732
  Amortization                139         66          250        133
  Interest Expense             11         --           19         --
  Totals                    2,541      1,421        4,608      2,637
Income from Operations         20        717           35      1,222
Other Income                  117          5          140         10
Income Before Taxes           137        722          175      1,232
Income Taxes                   52        279           66        476
Net Income                     85        443          109        756
Net Income per share        $0.01      $0.07        $0.02      $0.12
Weighted average number
 of fully diluted shares
 used in computation of
 per-share net income       7,404      5,662        6,903      5,766

CONTACT: Andyne Computing

Campbell Patterson, 613/548-4355

[e-mail]

or

Ronald Trahan Associates

Ronald C. Trahan, 508/651-1180

[e-mail]

INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS EARNINGS REPEATS: New York 212-575-8822 or 800-221-2462; Boston 617-330-5311 or

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