Concord Camera reports record third quarter and nine months results for its June 30, 1995 fiscal year; Company achieves $1.5 million profit turnaround from the third quarter of 1994; Core camera sales increase 32 percent over the comparable 1994 quarter; Balance sheet quality continues to improve; chairman sees continuing progress.

AVENEL, N.J.--(BUSINESS WIRE)--May 4, 1995--Concord Camera Corp. (NASDAQ:LENS) today announced results for the third quarter and nine months ended March 31, 1995.

During the quarter ended March 31, 1995, net sales were $13.8 million, an increase of 13.6 percent from net sales of $12.1 million in the March 31, 1994 quarter. In the third quarter of 1995, there were no non-camera or promotional sales compared to net sales of $0.7 million and $1 million respectively in those categories for the comparable 1994 quarter, an increase of 32 percent in core business camera sales over $10.4 million of camera sales recorded in the comparable 1994 quarter.

Comparing the third quarter of fiscal 1995 to the third quarter of fiscal 1994, OEM sales were $4.3 million compared to $2.7 million, an increase of 56 percent, inventory turnover was 2.3 vs. 1.2 and receivable collection days were 55 days vs. 77 days. Since the percentage of the company's sales that are paid by letter of credit has increased over the past 12 months, the need for working capital borrowing to support those increased sales has been reduced.

Despite approximately $357,000 in professional expenses and costs related to prior management's actions, net income for the March 31, 1995 quarter was $250,385, or 2 cents per share based upon 10,529,991 weighted average number of shares outstanding as compared to a loss of ($1.2) million, or ($0.11) per share based upon 10,352,440 weighted average number of shares outstanding for the March 31, 1994 quarter.

For the nine months ended March 31, 1995, net sales were $47.1 million, an increase of 12.2 percent from net sales of $41.9 million in the comparable 1994 period. In the nine month period ended March 31, 1995, there was approximately $2.5 million of non-camera revenues and no promotional sales compared to net sales of $3.4 million and $2.9 million respectively in those categories in the comparable 1994 nine month period, or an increase of 25.1 percent in core camera business sales.

Net income for the nine months ended March 31, 1995 was $2.2 million, or 21 cents per share based on 10,507,684 weighted average number of shares outstanding compared to net income of $1.5 million, or 15 cents per share based on 10,235,412 weighted average number of shares outstanding in the comparable 1994 period. Cash flow provided by operating activities for the nine months ended March 31, 1995 was $2.7 million compared with a use of cash of ($2.6) million in the nine months ended March 31, 1994, a reversal of $5.3 million.

Operating income (income before Depreciation, Amortization and Financial Expenses) for the March 31, 1995 quarter was $1.2 million compared to a loss of $(.2) million for the March 31, 1994 quarter. For the nine months ended March 31, 1995, operating income was $5.1 million compared to $4.4 million in the comparable period of 1994.

In commenting on the 1995 third quarter, Ira Lampert, the company's chairman and CEO, stated, "We are pleased with results for a number of reasons: sales through normal distribution channels increased 23 percent and sales to OEM customers increased 56 percent over the March 31, 1994 quarter. Lampert added that "in the March 31, 1995 quarter, gross margins increased to 33 percent from 24 percent in the comparable 1994 period."

Commenting on the company's balance sheet, Lampert stated that "total debt was reduced to $7.3 million from $10.4 million at March 31, 1994, a reduction of 30%." He stated that "the company reduced inventory levels by approximately $3 million from $20.7 million at March 31, 1994 to $17.8 million at March 31, 1995; book value at March 31, 1995 was $33.4 million, or $3.17 per share; and cash balances were $3.9 million. Although management is pleased with results to date, it anticipates improved results in the future."

Lampert added that "the company is going to expand its new factory facility in the PRC. Upon completion, it will move out of its old factory buildings in the PRC and concentrate production at the expanded facility. The move will create increased operating efficiencies, cost savings and ability to increase production." Lampert stated that "despite price pressure in the camera industry and increases in the cost of raw materials and components, the company's cost saving programs assisted in achieving better gross margins for the March 31, 1995 quarter compared to the comparable 1994 period." Lampert concluded that "although the company's business has been seasonal in the past, progress has been and will continue to be made toward leveling first and second half sales."

CONCORD CAMERA CORP. is principally engaged in the manufacture and sale of popularly-priced, easy-to-use, 35 millimeter, 110 cartridge, and single-use cameras which it manufactures and assembles in the PRC under the CONCORD, KEYSTONE, LE CLIC and for sales outside the United States and Mexico, ARGUS trade names, as well as private labels. The Company sells and markets its camera products worldwide through direct sales offices in the United States, Canada, Germany, Hong Kong, Japan, Panama, and United Kingdom, Hungary, France and through independent sales agents. -0-

                          CONCORD CAMERA CORP.
                  Consolidated Statements Of Operations
                               (Unaudited)

                            For the                 For the
                      Three months ended      Nine months ended
                            March 31,               March 31,
                      1995          1994       1995        1994

Net sales         $13,783,022   $12,133,669  $47,054,815 $41,933,216
Cost of products
 sold               9,212,844     9,215,315   31,917,977  27,782,966
Gross profit        4,570,178     2,918,354   15,136,838  14,150,250
Selling expenses    1,721,518     1,195,600    5,338,584   3,965,446
General & administrative
 expenses           2,186,545     2,451,107    6,463,410   7,422,257
Financial expenses    347,959       500,735    1,102,419   1,477,738
Other (income)
  expense, net         21,947       (57,076)     (76,261)   (271,078)
Income (loss)
 from operations
 before income
 taxes                292,209    (1,172,012)   2,308,686   1,555,887
Provision for
 income taxes          41,824             0      144,769      70,279
Net income (loss) $   250,385   $(1,172,012) $ 2,163,917 $ 1,485,608
Earnings (loss) per
 common and
 common equivalent
 share                  $0.02        $(0.11)       $0.21       $0.15
Weighted average number of
 common and common
 equivalent shares
 outstanding        10,529,991   10,352,440   10,507,684  10,235,412
-0-

                               CONCORD CAMERA CORP.
                            Consolidated Balance Sheets

                                      March 31,       June 30,
                                        1995           1994
                                     (Unaudited)

Current assets:
 Cash                                $3,930,094      $3,394,658
 Accounts receivable, net            10,419,781       8,489,661
 Inventories                         17,849,183      19,107,018
 Prepaid expenses and
  other current assets                2,386,186       2,610,127
 Total current assets                34,585,244      33,601,464
 Plant and equipment, net             9,896,616      10,306,659
 Goodwill, net                        1,621,215       1,728,783
 Investment in joint ventures            93,634         168,634
 Other assets                         3,215,266       2,377,018
 Total assets                       $49,411,975     $48,182,558
Current liabilities:
 Short-term debt                     $5,817,881      $3,708,976
 Current portion of long-term debt       24,350          23,646
 Current obligations under
  capital leases                        974,720         877,998
 Accounts payable                     5,772,051       5,436,932
 Accrued expenses                     1,793,189       1,947,521
 Income taxes payable                   370,053         184,471
 Due to officer                               0         100,000
 Other current liabilities              370,700         207,333
 Total current liabilities           15,122,944      12,486,877
 Deferred income taxes                  431,142         509,190
 Long-term debt                         270,120       3,284,534
 Obligations under capital leases       223,184         713,721
 Other long-term liabilities             13,010         133,011
  Total liabilities                $ 16,060,400    $ 17,127,333

Stockholders' equity:
 Common stock, no par value,
 20,000,000 authorized; 10,523,634
 and 10,490,526 issued as of
 March 31, 1995 and June 30, 1994   37,067,607      36,935,174
 Paid in capital                       850,786         850,786
 Deficit                            (4,113,899)     (6,277,816)
                                    33,804,494      31,508,144
Less: treasury stock,
 at cost, 63,553 shares               (452,919)       (452,919)
Total stockholders' equity          33,351,575      31,055,225
Total liabilities and
 stockholders' equity              $49,411,975     $48,182,558

CONTACT: KCSA 

Adam I. Friedman/Joseph A. Mansi, 212/682-6300

ext. 215/205