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CONVEX COMPUTER CORPORATION ANNOUNCES SECOND QUARTER RESULTS

 CONVEX COMPUTER CORPORATION ANNOUNCES SECOND QUARTER RESULTS
 RICHARDSON, Texas, July 27 /PRNewswire/ -- Convex Computer Corporation (NYSE: CNX) today announced its financial results for the second quarter ending June 30, 1992. Revenue for the period was a record $57.5 million and net income was $.8 million, or 3 cents per share. The comparable figures for the second quarter of 1991 were revenue of $50.5 million and a loss of ($1.4) million, or 6 cents per share.
 "Strong C3800 shipments drove quarterly revenue to the highest level in our history," said Robert J. Paluck, Convex chairman, president and chief executive officer. Paluck noted that 15 of the 36 systems shipped during the second quarter were C3800s, Convex's high-end, gallium arsenide-based supercomputer. "All of the new C3 Series supercomputers that we announced in 1991 are now fully available. This has been a key factor in returning Convex to profitability in 1992."
 According to the company, international results were good, particularly in Germany and the Pacific Rim, and accounted for approximately 60 percent of second quarter revenue. "Even in an uncertain economic environment, we are seeing a high level of customer interest in our entire product line," said Paluck. "For example, during the quarter, both Mercedes-Benz AG and Arnold Air Force Base ordered their second Convex C3 Series supercomputer in less than a year." Other significant orders during the second quarter included C3800 orders from General Electric Research and Development Center, Sharp Electronics in Japan, and the National Center for High-Performance Computing in Taiwan.
 "The level of customer interest and sales opportunities continues to be encouraging," said Paluck. "Our view of the future, however, is tempered by the fact that the worldwide economic environment is still weak. While we feel that this conservative outlook is realistic, it will not lessen our efforts to continue to improve the company's financial performance."
 Convex Computer Corporation, a leading supplier of supercomputers worldwide, was founded in 1982 to design, manufacture, market and service high performance systems. The company markets its products primarily to scientific, engineering, and technical users throughout the world for a wide variety of applications in areas such as seismic processing, reservoir simulation, computational chemistry, computer- aided engineering, image processing, aerospace simulations and molecular biology. The systems are sold and serviced through direct sales and an extensive distribution network.
 CONVEX COMPUTER CORPORATION
 FINANCIAL HIGHLIGHTS
 (Unaudited -- In thousands, except per share data)
 Three Months Ended
 6/30/92 6/30/91 3/31/92
 Total revenue $ 57,537 $ 50,506 $ 54,473
 Operating income
 (loss) $ 1,821 $ (1,925) $ 1,104
 Net income (loss) $ 755 $ (1,429) $ 404
 Earnings per common
 share--primary & fully
 diluted:
 Net income (loss) $ .03 $ (.06) $ .02
 Weighted average
 shares outstanding--
 primary: 24,349 23,116 23,773
 CONVEX COMPUTER CORPORATION
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited -- In thousands, except per share data)
 Three Months Ended Six Months Ended
 6/30/92 6/30/91 6/30/92 6/30/91
 Revenue:
 Product and other revenue $44,150 $41,227 $87,433 $87,279
 Service revenue 13,387 9,279 24,577 18,854
 Total revenue: 57,537 50,506 112,010 106,133
 Costs and expenses:
 Cost of product and
 other revenue 22,453 20,708 44,324 39,479
 Cost of service revenue 8,489 6,142 15,245 12,384
 Research and development 8,048 7,561 15,956 14,770
 Selling, general and
 administrative 16,726 18,020 33,560 36,108
 Total costs and expenses 55,716 52,431 109,085 102,741
 Operating income (loss) 1,821 (1,925) 2,925 3,392
 Other income (expense), net (606) 99 (1,097) 716
 Income (loss) before
 provision for income taxes 1,215 (1,826) 1,828 4,108
 Provision (benefit) for
 income taxes 460 (397) 669 1,561
 Net income (loss) $ 755 $(1,429) $ 1,159 $ 2,547
 Earnings per common share--
 primary & fully diluted:
 Net income (loss) $ .03 $ (.06) $ .05 $ .11
 Weighted average shares
 outstanding -- primary: 24,349 23,116 24,052 22,952
 CONVEX COMPUTER CORPORATION
 CONSOLIDATED BALANCE SHEET
 June 30, 1992
 (Unaudited -- Dollars in thousands)
 ASSETS
 Cash, cash equivalents &
 short-term investments $92,659
 Receivables, net 71,260
 Current portion of
 long-term receivables 11,873
 Inventory 40,882
 Prepaid expenses and other
 current assets 14,869
 Total current assets 231,543
 Fixed assets, net 47,153
 Long-term receivables 22,701
 Other assets, net 3,752
 TOTAL ASSETS $305,149
 LIABILITIES & SHAREHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $15,272
 Accrued payroll and
 related taxes 7,554
 Current portion of notes
 payable 9,723
 Deferred revenue 11,031
 Other current liabilities 21,370
 Total current liabilities 64,950
 Long-term liabilities:
 Notes payable 15,189
 6 pct. convertible subordinated
 debentures 53,500
 Total long-term liabilities 68,689
 Shareholders' equity:
 Common stock 244
 Additional capital 143,344
 Retained earnings 28,892
 Cumulative translation
 adjustment (970)
 Total shareholders' equity 171,510
 TOTAL LIABILITIES &
 SHAREHOLDERS' EQUITY $305,149
 -0- 7/27/92
 /CONTACT: Bill Cool, 214-497-4956, or Donna Burke, 214-497-4230 both of Convex Computer Corporation/
 (CNX) CO: Convex Computer Corporation ST: Texas IN: CPR SU: ERN


PS -- NY010 -- 3308 07/27/92 07:32 EDT
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Date:Jul 27, 1992
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