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COMPUTER NETWORK TECHNOLOGY ANNOUNCES HIGHER SECOND QUARTER REVENUE AND EARNINGS

 COMPUTER NETWORK TECHNOLOGY ANNOUNCES HIGHER
 SECOND QUARTER REVENUE AND EARNINGS
 MAPLE GROVE, Minn., July 28 /PRNewswire/ -- Computer Network Technology Corporation (NASDAQ-NMS: CMNT) (CNT) today reported that revenue for the second quarter ended June 30, 1992, increased to a record $7.8 million, up 72 percent over the $4.5 million for the second quarter a year ago. Net income totaled $793,934, or $.05 per share. This compares with $123,544, or $.01 per share for the same period a year ago.
 For the 1992 first half, revenue increased 52 percent to $13.8 million, from $9.1 million last year. Net income for the 1992 first half was $925,562, an 82 percent increase over $508,645 in 1991. Per share net income for the first half increased to $.05 per share in 1992, up from $.04 per share in 1991.
 Commenting on these results, Mac Lewis, CNT's president and CEO, observed, "We are pleased to report continue revenue growth and our second consecutive quarter of record order levels. During the second quarter, we received orders totalling $9.2 million including $5.2 million in orders from five new North American end user customers. This compares with $5.9 million in total orders for the 1991 second quarter."
 Lewis continued, "We believe our strong order rate is an indication of the increasing marketplace awareness of the value offered by CNT's broad line of extended channel networking products. We are hopeful that the recently completed acquisition of our distributor in the United Kingdom will help further expand our market presence in Europe. In addition, our new products, which include remote rotating disk support (DASD), FDDI interfaces, and new communication media interfaces, are generating growing interest from our existing customers and new prospects."
 Lewis concluded, "We are encouraged by our record order levels, the activity in our sales pipeline, and our customers' and prospects' strong interest in our 'solutions oriented' products and services. However, even though we are beginning the third quarter with a record order backlog, results for the third quarter will be impacted by the higher fixed expenses associated with our new subsidiary in the U.K. and the timing of revenue recognition on several key account situations, both domestically and in the United Kingdom."
 Computer Network Technology Corporation develops, manufactures and markets high speed extended channel networking products for the interconnection of mainframe computers, data base computers and peripheral devices over unlimited distances. The company's common stock is traded on the NASDAQ National Market System under the symbol CMNT.
 COMPUTER NETWORK TECHNOLOGY CORPORATION
 STATEMENTS OF OPERATIONS
 (Unaudited)
 Three Months Ended Six Months Ended
 6/30/92 6/30/91 6/30/92 6/30/91
 Revenue:
 Equipment sales $6,580,001 $3,990,646 $11,807,073 $8,057,483
 Service fees 1,187,985 530,126 2,036,337 1,036,162
 Total revenue 7,767,986 4,520,772 13,843,410 9,093,645
 Costs and expenses:
 Cost of equipment
 sales 1,873,807 882,650 3,231,808 1,772,792
 Cost of services 1,122,695 677,523 2,157,599 1,268,696
 Sales and marketing 2,062,189 1,472,235 3,919,131 2,907,131
 Engineering and
 development 1,447,104 945,919 2,801,482 1,826,053
 General and
 administrative 444,360 395,867 864,173 758,147
 Total costs and
 expenses 6,950,155 4,374,194 12,974,193 8,532,819
 Income from operations 817,831 146,578 869,217 560,826
 Other income (expense):
 Interest income 102,918 28,111 213,846 64,077
 Interest expense (35,394) (32,817) (75,192) (63,210)
 Other income (expense) (15,421) (7,328) 2,691 (12,048)
 Net other
 income (expense) 52,103 (12,034) 141,345 (11,181)
 Income before
 income taxes 869,934 134,544 1,010,562 549,645
 Provision for
 income taxes 76,000 11,000 85,000 41,000
 Net income $793,934 $123,544 $925,562 $508,645
 Net income per common
 and common equivalent
 share $.05 $.01 $.05 $.04
 Weighted average number
 of common and common
 equivalent shares 17,059,720 14,543,598 17,118,891 14,422,748
 COMPUTER NETWORK TECHNOLOGY CORPORATION
 BALANCE SHEETS
 6/30/92 12/31/91
 ASSETS (Unaudited)
 Current assets:
 Cash and cash equivalents $4,616,189 $1,431,402
 Marketable securities 4,203,101 5,081,128
 Receivables 5,614,447 5,189,748
 Inventories 5,400,189 4,447,950
 Prepaid expenses 205,637 93,491
 Total current assets 20,039,563 16,243,719
 Property and equipment, net 4,137,220 3,435,841
 Field support spares, net 750,917 804,032
 Other assets 258,932 21,805
 -- $25,186,632 $20,505,397
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $3,320,011 $1,160,105
 Accrued expenses 1,842,413 1,500,575
 Deferred revenue 2,341,449 1,459,757
 Current installments of obligations
 under capital leases 416,291 393,657
 Total current liabilities 7,920,164 4,514,094
 Obligations under capital leases,
 less current installments 772,897 987,168
 Total liabilities 8,693,061 5,501,262
 Shareholders' equity:
 Common stock, $.01 par value;
 authorized 30,000,000 shares;
 issued and outstanding 16,429,788
 at June 30, 1992, and 16,196,157
 at Dec. 31, 1991 164,298 161,962
 Additional paid-in capital 20,899,443 20,619,750
 Accumulated deficit (4,570,170) (5,495,732)
 Note receivable from officer/director -- (281,845)
 Total shareholders' equity 16,493,571 15,004,135
 -- $15,186,632 $20,505,397
 -0- 7/28/92
 /CONTACT: John Brintnall of Computer Network Technology, 612-550-8000/
 (CMNT) CO: Computer Network Technology Corporation ST: Minnesota IN: CPR SU: ERN


AL -- MN015 -- 4226 07/28/92 16:05 EDT
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