Computer Marketplace estimates second-quarter results.

CORONA, Calif.--(BUSINESS WIRE)--Jan. 10, 1995--Computer Marketplace Inc. (NASDAQ:MKPL) Tuesday announced the company's preliminary estimate of results for the second fiscal quarter ended Dec. 31, 1994.

On revenues of approximately $7.7 million, the company is estimating a net loss of around $240,000, or 3 cents per share, on 8,090,302 shares outstanding.

For the six months ended Dec. 31, 1994, Computer Marketplace expects to post total revenues of approximately $16.1 million, and a net loss of around $360,000, or 4 cents per share, on 8,090,302 shares outstanding.

L. Wayne Kiley, chairman of the board, president and chief executive officer, stated: "Over the past 18 months, the revenue base of Computer Marketplace has continued to grow substantially. In the highly competitive reseller business, volume is a primary factor to maintaining a foothold in the market.

"To gain the volume, we have made important investments in people; our sales and support staff now numbers 60, and we have added 25 people to the company since the end of our fiscal year in June 1994.

"We have brought Computer Marketplace to a new level of market leadership and professionalism in our financial and administrative staffs. As a consequence, the additional overhead burden has impacted our margins, and we have incurred losses in the first two quarters of the 1995 fiscal year.

"As we deploy cost-containment measures and as our new salespeople come through their training and learning curves, we expect an improvement in operating margins and a return to profitability, hopefully in the second half of the year."

With regard to other areas of the company's business, Kiley further commented: "We were pleased recently to have been named a direct VAR (Value-Added Reseller) by Motorola Computer Group; during December, we were also named a MicroAge vertical reseller. Previously, the company was named a Sun Microsystems authorized reseller.

"SSI (Superior Solutions Inc.), the networking company we acquired last year, has been profitable for the past several months, and we commend their progress. Medical Marketplace, the wholly owned subsidiary which we formed last year, has made excellent contacts in their first year.

"These have resulted in an exclusive sourcing agreement with an exporter of goods to mainland China for used medical equipment and an initial purchase order for approximately $1 million of medical equipment to be placed in hospitals in Mexico.

"MARS (Marketplace Asset Recovery Services), a wholly owned subsidiary that was just recently formed, has received several assignments and should be contributing to operations by the end of the third fiscal quarter.

"We negotiated a $2 million line of credit with a large regional bank, of which $200,000 has been drawn down to date. Our cash and available credit position is strong and is sufficient to provide for our growth in operations over the near to medium term."

Computer Marketplace distributes new and used computer equipment on a nationwide basis to dealers, computer maintenance companies, leasing companies and equipment brokers and provides solutions to end users.

A specialist in delivering advanced technology, MKPL also sells and rents used medical equipment through its wholly owned subsidiary, Medical Marketplace, and is a provider of networking solutions for companies through its wholly owned Novell Platinum dealer, Superior Solutions.

CONTACT: Paradigm Corporate PR/Consulting, Los Angeles 

Mary McCarthy, 310/471-0643