Conceptronic announces second quarter results.

PORTSMOUTH, N.H.--(BUSINESS WIRE)--Aug. 7, 1996--Conceptronic Inc. (NASDAQ:CNCP) today announced results for the second quarter ended June 30, 1996.

Net sales for the three months ended June 30, 1996 were $3,630,000 compared to $3,739,000 for the same period in 1995. Net loss for the three months ended June 30, 1996 was $321,000 (a loss of 19 cents per share) compared to a net profit of $87,000 (5 cents per share) for the same three month period in 1995.

Net sales for the six months ended June 30, 1996 were $7,560,000 compared to $6,994,000 for the same period in 1995. The net loss for the six months ended June 30, 1996 was $262,000 (a loss of 15 cents per share) compared to a net profit of $140,000 (8 cents per share) for the same period in 1995. Backlog as of June 30, 1996 was approximately $1,613,000 compared to approximately $2,416,000 as of July 2, 1995.

Selling and administrative expenses for the three months ended June 30, 1996 were $906,000 compared to $881,000 for the same period in 1995, an increase of 3 percent. Selling and administrative expenditures for the six months ended June 30, 1996 were $1,822,000 compared to $1,594,000 for the same period in 1995, an increase of 14 percent.

Research and development expenditures for the three months ended June 30, 1996 were $163,000 compared to $89,000 for the same period in 1995, an increase of 83 percent. Research and development expenditures for the six months ended June 30, 1996 were $225,000 compared to $157,000 for the same period in 1995, an increase of 43 percent.

Garry Prime, chairman and CEO, stated, "Competitive and market pressures have resulted in disappointing second quarter results. We experienced a decrease of 17 percent in second quarter bookings compared to the same period last year as a result of a sharp slowdown early in the second quarter of 1996. Additionally, we experienced a decline in margins as a result of increasing pricing pressures brought on by over-capacity in the industry and higher manufacturing costs required to meet customer expectations in the areas of product performance and reliability. However, orders are increasing and we are implementing initiatives that we expect will increase our margins.

"Increases in our selling and administrative and research and development expenses reflect our continued investment in the sales, marketing and development of our products. New sales initiatives over the last year include a new director of sales and a new regional sales manager in the Far East. New products include the successful introduction of the Freedom HGR 2000, rework station, designed for the latest surface mount technology, BGA, as well as an advanced cooling system for the company's solder reflow ovens.

"While it is too early to predict the balance of the year, I remain optimistic that our position as a product leader will result in continued sales growth and a return to profitability."

This release contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. The factors that could cause actual results to differ materially include the following: general economic conditions and growth rates in the SMT circuit manufacturing industry and related industries, including but limited to the printed circuit board industry; competitive factors and pricing pressures; changes in product mix; changes in the seasonality of demand patterns; the timely development and acceptance of new products; inventory risks due to shifts in market demand; component constraints and shortages; risks of nonpayment of accounts receivable; ramp up and expansion of manufacturing capacity; and the risks described from time to time in the company's SEC reports.

Conceptronic Inc., designs and manufactures highly advanced, computer-controlled reflow soldering equipment used in the electronic, SMT circuit manufacturing industry. Conceptronic is recognized as a leading worldwide supplier of conveyorized forced convective reflow ovens and component rework stations. Conceptronic products are preferred by many of the world's largest automotive, telecommunications, aerospace, computer and contract assembly manufacturers.

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                     Selected Summary Financial Data
                              (Unaudited)

                     Three Months Ended          Six Months Ended
                      June 30,     July 2,     June 30,      July 2,
                        1996        1995         1996         1995

Net Sales           $3,630,000   $3,739,000   $7,560,000   $6,994,000
Net Income (loss)   $ (321,000)  $   87,000   $ (262,000)  $  140,000
Earnings (loss)
 per Share          $     (.19)  $      .05   $     (.15)  $      .08
Weighted Average
 Shares Outstanding  1,700,000    1,700,000    1,700,000    1,700,000
Backlog                                       $1,613,000   $2,416,000

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CONTACT: Conceptronic Inc.

William D. Gray, 603/431-6262