Aspect Telecommunications Announces Record Financial Results for the Period Ended Dec. 31, 1995.

SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 16, 1996--Aspect Telecommunications (NASDAQ/NMS:ASPT) reported today record financial results including new highs for net revenues, income from operations, net income and earnings per share for the quarter and year ended December 31, 1995. All results are after taking into account a two-for-one common stock split effective September 25, 1995 and the acquisition of TCS Management Group, Inc. on October 31, 1995.

Including $5.2 million of revenue from TCS, record net revenues in the fourth quarter of 1995 of $60.7 million grew 48 percent compared to the fourth quarter of last year and 23 percent compared to the third quarter of this year. Record income from operations of $11.8 million for the fourth quarter increased 55 percent over the same period of 1994 and 30 percent over the third quarter of 1995, excluding a non-recurring accounting charge of $1.8 million for purchased in-process technology associated with the October 1995 acquisition of TCS Management Group. After including this charge, income from operations still set a new quarterly record at $10.0 million.

Before the acquisition accounting charge, fourth quarter 1995 net income of $7.7 million increased 60 percent when compared to the same quarter last year and increased 21 percent when compared to the third quarter of this year. On the same basis, fully diluted earnings per share of 32 cents for the fourth quarter of 1995 compares to 22 cents for the fourth quarter of last year and 28 cents for the third quarter of this year. After the non- recurring charge, net income for the fourth quarter of 1995 was $6.6 million, up 3 percent from the prior quarter and up 37 percent from a year ago. On this basis, fully diluted earnings per share for the fourth quarter of 1995 was 28 cents per share.

For the year ended December 31, 1995, revenues of $199.0 million represent an increase of 35 percent over 1994. Operating profits of $37.4 million for 1995 were up 33 percent before the non- recurring accounting charge and totaled $35.6 million, or an increase of 27 percent, after including the charge. Net income, before the non-recurring charge, likewise improved 43 percent to $25.1 million or $1.07 per share on a fully diluted basis in 1995 from net income of $17.6 million or $0.80 per share in 1994. After including the non-recurring TCS acquisition charge, fully diluted earnings per share was $1.03 for 1995.

Commenting on the quarterly and yearly results, James R. Carreker, Aspect's chairman and chief executive officer noted, "We are naturally pleased with the strong finish to another year of steady growth for Aspect Telecommunications. Increased demand for our core products, good market acceptance for our new offerings, an expansion in our international business, and better than expected volumes at our newly acquired TCS Management Group subsidiary all contributed to these record-setting results."

Aspect Telecommunications is a global provider of comprehensive business solutions for mission-critical call centers. Aspect products include automatic call distributors, interactive voice response systems, management information and reporting tools, and comprehensive planning and forecasting packages. Aspect is also a provider of services vital to call center environments, including business applications consulting, systems integration and training. Aspect Telecommunications is headquartered in San Jose, California, and employs approximately 1,000 people worldwide. -0-

                 ASPECT TELECOMMUNICATIONS CORPORATION
                   CONSOLIDATED STATEMENTS OF INCOME
                 (in thousands, except per share data)

                   Three Months Ended            Twelve Months Ended
                      December 31,                   December 31,
                     1995    1995    1994      1995     1995     1994
                   proforma    (unaudited)   proforma
                   excluding                excluding
                 non-recurring            non-recurring
                    charge                    charge
                  (unaudited)              (unaudited)
Net revenues:
 Product           $45,793 $45,793 $31,622  $148,436 $148,436 $114,632
 Customer support   14,925  14,925   9,438    50,536   50,536   32,607
Total net revenues  60,718  60,718  41,060   198,972  198,972  147,239

Costs and expenses:
 Cost of product
  revenues          16,036  16,036  11,199    52,007   52,007   41,406
 Cost of customer
  support revenues  10,344  10,344   7,041    35,369   35,369   24,272
 Research
  and development    6,793   6,793   4,757    23,450   23,450   15,774
 Selling, general
  & administrative  15,700  15,700  10,417    50,726   50,726   37,662
 Purchased in-process
  technology (1)         0   1,800       0         0    1,800        0
Total costs and
 expenses           48,873  50,673  33,414   161,552  163,352  119,114

Inc fm operations   11,845  10,045   7,646    37,420   35,620   28,125
Interest inc, net      449     449     150     2,461    2,461      218
Inc before taxes    12,294  10,494   7,796    39,881   38,081   28,343
Provision for taxes  4,549   3,883   2,963    14,756   14,090   10,770

Net income          $7,745  $6,611  $4,833   $25,125  $23,991  $17,573

Earnings per share:
 Primary             $0.35   $0.30   $0.23     $1.15    $1.10    $0.82
 Fully diluted       $0.32   $0.28   $0.22     $1.07    $1.03    $0.80

Shares used in per share computation:
 Primary            22,409  22,409  21,284    21,846   21,846   21,356
 Fully diluted      25,266  25,266  24,116    25,102   25,102   24,192

(1)  A one-time accounting charge of $1,800 for purchased
     in-process technology was recorded in the fourth quarter
     of 1995 related to the acquisition of TCS Management Group, Inc.
     on October 31, 1995.

                 ASPECT TELECOMMUNICATIONS CORPORATION
                     CONSOLIDATED BALANCE SHEETS
                           (in thousands)

                                            December 31,
                                          1995        1994
Assets
   Cash and equivalents and
     short-term investments             $93,633    $102,597
   Accounts receivable, net              39,291      26,294
   Inventories                           11,051       8,746
   Other current assets                   8,699       5,713
Total current assets                    152,674     143,350
   Property and equipment, net           28,418      19,292
   Other assets (1)                      34,779       3,393
Total assets                           $215,871    $166,035

Liabilities and shareholders' equity
   Accounts payable                     $11,142      $7,273
   Accrued liabilities                   23,669      16,562
   Customer deposits
     and deferred revenue                 9,275       6,387
Total current liabilities                44,086      30,222
   Convertible subordinated debentures   55,000      55,000
   Note payable (2)                       4,500           0
Shareholders' equity                    112,285      80,813
Total liabilities
  and shareholders' equity             $215,871    $166,035

(1)  Other assets at December 31, 1995 include approximately
     $31 million of goodwill and other intangibles related to the
     acquisition of TCS Management Group, Inc.
(2)  The note payable is a result of the acquisition of TCS
     Management Group, Inc.

CONTACT: Aspect Telecommunications Corp.

Rodney Dabagian, 408/325-2200