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CHECK TECHNOLOGY CORPORATION ANNOUNCES NINE MONTH RESULTS

 ST. PAUL, Minn., Aug. 6 /PRNewswire/ -- Check Technology Corporation (NASDAQ-NMS: CTCQ) today reported net income for the nine month period ended June 30, 1993, of $634,000, or $0.11 per share, on revenues of $16,190,000 compared to net income of $467,000, or $0.08 per share, on revenues of $14,443,000 for the comparable period last year. These results were achieved after recording unrealized currency exchange losses for the nine month period of $311,000 compared to unrealized currency exchange gains of $214,000 during the comparable period last year.
 For the third quarter ended June 30, 1993, the company reported a loss of $147,000, or $0.02 per share, on revenues of $4,595,000 compared to net income of $43,000, or $0.01 per share, on revenues of $4,387,000 during the comparable period last year. Results for the quarter were adversely affected by unrealized currency exchange losses of $142,000 compared to a gain of $90,000 in the comparable period last year.
 Research and development spending for the quarter and nine months amounted to $532,000 and $1,641,000, respectively, compared to $592,000 and $1,387,000 in the prior year. The increase reflects the company's commitment to develop a new state-of-the-art family of check production systems aimed at increasing the company's domestic market share, while continuing to provide effective solutions in international markets.
 Jay Herman, president and chief executive officer, commented: "Even though year-to-date revenues were up 12 percent, our third quarter was softer than we had anticipated. This was attributable primarily to customer deferrals to future quarters rather than lost business. We anticipate improved results in the fourth quarter and have to date received equipment orders approximating our third quarter system sales total."
 Check Technology Corporation is a manufacturer of computerized high volume check and encoded document production systems serving the international financial printing industry as well as corporate customers seeking to manage more effectively their check disbursement functions. The company operates through sales offices at its corporate headquarters in the United States and at its subsidiaries in the United Kingdom, France and Australia.
 CHECK TECHNOLOGY CORPORATION
 Three Months Ended Nine Months Ended
 6/30/93 6/30/92 6/30/93 6/30/92
 Sales:
 Printing equipment $1,367,000 $1,250,000 $6,423,000 $4,978,000
 Maintenance, spares
 and supplies 3,228,000 3,137,000 9,767,000 9,465,000
 Net sales 4,595,000 4,387,000 16,190,000 14,443,000
 Income (loss) from system
 sales and service (13,000) (83,000) 1,043,000 359,000
 Interest income 19,000 29,000 48,000 52,000
 Income (loss) before
 unrealized exchange and
 income taxes 6,000 (54,000) 1,091,000 411,000
 Unrealized exchange
 gain/(loss) (142,000) 90,000 (311,000) 214,000
 Income (loss) before
 income taxes (136,000) 36,000 780,000 625,000
 Income tax expense benefit 11,000 (7,000) 146,000 158,000
 Net income (loss) $(147,000) $43,000 $634,000 $467,000
 Earnings per share $(.02) $.01 $.11 $.08
 Weighted average number
 of shares and share
 equivalents outstanding 6,057,000 5,981,000 6,027,000 5,996,000
 CHECK TECHNOLOGY CORPORATION
 CONDENSED BALANCE SHEETS
 6/30/93 9/30/92
 Cash and cash equivalents $3,403,000 $2,636,000
 Accounts receivable -- net 3,416,000 4,790,000
 Inventories 5,406,000 5,553,000
 Other current assets 555,000 670,000
 Total current assets 12,780,000 13,649,000
 Fixed assets 1,037,000 1,113,000
 -- 13,817,000 14,762,000
 Current liabilities 2,614,000 3,589,000
 Other liabilities 116,000 94,000
 Total liabilities 2,730,000 3,683,000
 Stockholders' equity 11,087,000 11,079,000
 -- $13,817,000 $14,762,000
 -0- 8/6/93
 /CONTACT: Paul Stephenson of Check Technology Corporation, 612-454-9300, ext. 208/
 (CTCQ)


CO: Check Technology Corporation ST: Minnesota IN: PUB SU: ERN

DB -- MN014 -- 0434 08/06/93 16:57 EDT
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Publication:PR Newswire
Date:Aug 6, 1993
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