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COMSHARE REPORTS SECOND-QUARTER RESULTS

 ANN ARBOR, Mich., Jan. 25 /PRNewswire/ -- Comshare, Inc. (NASDAQ-NMS: CSRE) today reported net income for the second quarter ended Dec. 31 of $333,000, or 6 cents a share, down from $1.6 million, or 30 cents a share, for the same quarter a year ago. Revenues for the quarter were $26.9 million, compared with $33.2 million in the previous year.
 The company attributed the decline in revenues to an industry-wide slowdown in mainframe software sales as customers migrate to a new generation of client/server systems from their traditional host solutions. A weakening of non-U.S. currencies and the termination of Comshare's timesharing business also contributed to the decline.
 "Comshare has successfully positioned itself to meet a new generation of customer requirements for client/server software solutions, demonstrated most recently by our November release of a new version of our flagship Commander EIS/MSS software designed for use with Microsoft Windows," said T. Wallace Wrathall, Comshare's senior vice president and chief financial officer. "As Comshare's customers make decisions in 1993 that will determine their strategic computing platforms and applications for many years to come, we are completing a transition in our product mix to address this expected increase in demand."
 According to Wrathall, Comshare's new and existing client/server- based managerial application software accounted for 62 percent of software license revenue in the quarter. He said there was strong interest from prospective customers in the new Commander EIS/MSS for Windows, Commander FDC for financial and statutory reporting, Commander Enterprise Budgeting, and Commander ARTHUR Planning and Reporting for the retail industry.
 Although prospect lists continue to grow, Wrathall said sales cycles have lengthened due to computer industry confusion and uncertainties about the economy. "Recessionary factors combined with caution and confusion on the part of customers also appear to have moderated the seasonal upturn we have historically seen during the quarter," he said.
 The company had 57 percent of total revenue from markets outside of North America. Revenue would have been $2 million higher without the weakening of non-U.S. currencies, Wrathall said. Revenue for the quarter last year included $1 million from the company's 27-year timesharing business which was shut down last June, further contributing to the drop in revenue in comparison with the same quarter last year.
 Given the continuing uncertainty about the pace of customers' implementation of their client/server strategies, the company is managing costs and expenses carefully, while continuing to invest in support and maintenance for the current installed base of over 2,000 customers, Wrathall added.
 Founded in 1966, Comshare is known for its role in creating the executive information and management support system (EIS/MSS) market. Today, Comshare is a full-service, international software company specializing in managerial applications, such as profit management, enterprise budgeting, statutory and management reporting as well as EIS/MSS. In October 1992, the company received the Information Technology Association of America's (ITAA's) Customer Support Quality Award. The company also recently received Japan's prestigious "Software Product of the Year" award for its multidimensional decision support software.
 COMSHARE, INCORPORATED
 CONSOLIDATED STATEMENT OF INCOME
 Three Months Ended Six Months Ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Revenue:
 Software
 licenses $10,714,600 $14,933,300 $21,774,800 $25,236,200
 Software
 maintenance 10,882,200 10,690,000 22,477,200 21,147,600
 Implementation
 services 4,980,700 6,218,700 10,617,700 11,933,200
 Remote
 processing
 and other 331,200 1,367,100 692,300 3,283,000
 ------------ ------------ ------------ ------------
 26,908,700 33,209,100 55,562,000 61,600,000
 Costs and expenses:
 Selling
 and marketing 14,161,800 16,363,800 28,562,800 31,387,600
 Cost of revenue
 and support 4,689,500 6,400,000 10,422,700 12,680,700
 Research and
 product
 development 4,517,200 4,765,300 9,231,900 8,890,100
 General and
 administrative 3,223,700 3,297,000 6,158,500 6,707,500
 ------------ ------------ ------------ ------------
 26,592,200 30,826,100 54,375,900 59,665,900
 Income from
 operations 316,500 2,383,000 1,186,100 1,934,100
 Other income (expense):
 Interest income 132,600 96,600 212,500 206,200
 Interest expense (138,200) (108,500) (209,200) (108,500)
 Exchange gain 304,800 42,700 521,700 87,700
 ------------ ------------ ------------ ------------
 299,200 30,800 525,000 185,400
 Income before taxes 615,700 2,413,800 1,711,100 2,119,500
 Provision for
 income taxes 283,000 816,000 666,000 628,000
 ------------ ------------ ------------ ------------
 Net income $ 332,700 $1,597,800 $1,045,100 $1,491,500
 Weighted average
 number of common
 and dilutive common
 equivalent
 shares 5,324,400 5,401,900 5,315,000 5,458,000
 Net income per
 common share $.06 $.30 $.20 $.27
 COMSHARE, INCORPORATED
 CONDENSED CONSOLIDATED BALANCE SHEET
 As of
 Dec. 31, June 30,
 1992 1992
 Current assets $ 43,706,400 $ 51,648,700
 Property and
 equipment, net 9,066,500 12,309,900
 Computer
 software, net 37,431,900 36,895,300
 Goodwill, net 2,123,900 2,294,400
 Other assets 4,387,200 4,815,100
 ------------- ------------
 $ 96,715,900 $107,963,400
 Current
 liabilities $ 42,885,400 $ 53,653,400
 Long-term debt, less
 current portion 18,553,400 17,145,600
 Deferred credits 5,237,100 5,610,900
 Other liabilities 1,344,100 1,600,300
 Shareholders' equity 28,695,900 29,953,200
 ------------- ------------
 $ 96,715,900 $107,963,400
 NOTE: Certain amounts in the prior period financial statements have been reclassified to conform with the current presentation.
 Commander, Commander FDC, Commander EIS/MSS, Commander Enterprise Budgeting, and Commander ARTHUR Planning and Reporting are trademarks of Comshare, Incorporated. All other trademarks mentioned are the property of their respective owners.
 -0- 1/25/93
 /CONTACT: T. Wallace Wrathall, 313-769-6177, or Ricia Hughes, 313-769-6068, both of Comshare, Inc./
 (CSRE)


CO: Comshare, Inc. ST: Michigan IN: CPR SU: ERN

KE-SM -- DEMO02 -- 8213 01/25/93 07:01 EST
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Date:Jan 25, 1993
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