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CALIFORNIA QUARTZ, INC. REPORTS RESULTS

 SAN JOSE, Calif., Oct. 13 /PRNewswire/ -- California Quartz, Inc. (NASDAQ: CALQ), reported today an operating loss of $1,742,039 of which $1,019,178 was incurred by the company's recently formed, Focus Automation Corp. subsidiary and $357,500 involved a one time discount and finance cost charge.
 It is anticipated that the company will have an operating loss of $500,000 for the first quarter ending Sept. 30, 1993, a portion of which represents relocation of its semiconductor products manufacturing operations from Santa Ana to San Jose, Calif. The company also expected to show an operating profit for the second quarter because of record backlog of orders in the quartz operation.
 The company's Focus subsidiary has begun training over 140 students under the Trade Readjustment Act. This student level generates approximately $250,000 of revenues per month and there are another 120 students who qualify and are ready to begin training. This subsidiary should have revenues in excess of $1 million for the second quarter.
 California Quartz also announced it is negotiating to extend its term loan at the bank beyond its due date of Oct. 31, 1993 and also seek waivers from its current bank covenants which it is currently not in compliance with. If the efforts to negotiate a new loan are unsuccessful the company will seek alternate means of financing.
 The company is also negotiating a new lease for nearly $1 million in equipment which they already received. The company was unable to finalize an agreement with the original equipment lender and if no lease is obtained the company may forfeit its non-refundable deposit of $333,000 and incur liability for breath of contract.
 CALIFORNIA QUARTZ, INC. AND SUBSIDIR?Y
 Consolidated Statements of Operations
 Year ended June 30 1993 1992
 Revenues:
 Products $ 7,133,317 $ 7,925,520
 Services 144,604 --
 Total revenues 7,277,921 7,925,520
 Cost of sales:
 Products 5,502,113 5,729,166
 Services 594,961 --
 Total cost of sales 6,097,074 5,729,166
 Gross profit 1,180,547 2,196,354
 Selling, general and
 administrative expenses 2,476,876 1,611,087
 Income (loss) from
 operations (1,296,029) 585,267
 Other income (expenses):
 Amortization (74,676) (74,676)
 Other income 7,273 --
 Interest expense - net (219,949) (186,604)
 Amortization and write-off of
 discount and financing costs
 on notes payable (357,500) --
 Total (644,852) (261,280)
 Income (loss) from operations
 before income taxes (1,940,881) 323,987
 Income tax expense (benefit) (198,842) 130,000
 Net income (loss) (1,742,039) 193,987
 Net Income (loss) per share $ (1.04) $ 0.14
 Weighted average number of
 shares used in computation 1,674,791 1,418,508
 -0- 10/13/93
 /CONTACT: David Lopes of California Quartz, Inc., 408-227-1441, or Michelle Sotnikow of Howard Bronson & Company, Inc., 212-867-6160/
 (CALQ)


CO: California Quartz, Inc. ST: California IN: MNG SU: ERN

TM -- NY105 -- 1904 10/13/93 17:34 EDT
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Publication:PR Newswire
Date:Oct 13, 1993
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