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DATASOUTH COMPUTER CORPORATION ANNOUNCES RESULTS

 CHARLOTTE, N.C., April 23 /PRNewswire/ -- Today, Datasouth Computer Corporation (NASDAQ-NMS: DSCC) announced a net loss totaling $350,000 or $.06 per share for the quarter ended March 31, 1993 compared to net income of $419,000 or $.07 per share for the same period last year. Revenue for the first quarter totaled $2,967,000 representing a 32 percent decrease from the first quarter of 1992.
 Jim Busby, president of Datasouth, commented on the results saying: "Our quarter to quarter decline in sales was largely due to a government contract which represented 15 percent of revenue in the first quarter of 1992, but contributed nothing in 1993. While we recognized that this contract ended last year and had worked to generate additional business to offset it, we were unable to make up the shortfall. Profitability and gross margins also declined as the revenue level fell.
 "This is a reminder that major accounts business can be quite volatile, and reinforces our need to build a broader base of customers with a good balance between the distribution and major accounts channel. We are expanding our sales force and overall marketing efforts to help achieve this."
 Looking to the future, Busby added: "The introduction of our new Documax printer family in April will also help us begin recovering from the disappointing first quarter performance. Documax is a narrow- carriage, heavy-duty dot matrix printer targeting specialized forms printing applications. We expect the product to be well-received by existing customers, while also opening opportunities for new accounts."
 Datasouth designs, manufactures and markets heavy-duty printers used primarily with multi-user micro, mini and mainframe computers for heavy- duty, print intensive applications. The company sells its products worldwide through distributors and value-added resellers, and directly to large volume major accounts.
 DATASOUTH COMPUTER CORPORATION
 Comparative Financial Results
 (in thousands, except per share amounts)
 Quarter Ended
 March 31,
 1993 1992
 Revenue $ 2,967 $ 4,336
 Cost of Goods Sold 2,190 3,002
 Gross Profit 777 1,334
 Operating Expenses:
 Research and Development 462 387
 Selling, General and Administrative 798 696
 Total Operating Expenses 1,260 1,083
 Income (Loss) from Operations (483) 251
 Other Income, net 133 168
 Income (Loss) Before Income Taxes (350) 419
 Income Tax Provision -- --
 Net Income (Loss) $ (350) $ 419
 Earnings (Loss) per Share $ (.06) $ .07
 Weighted Average Shares Outstanding 5,691 5,691
 Comparative Balance Sheets
 (in thousands)
 March 31, December 31,
 1993 1992
 ASSETS
 Current Assets:
 Cash and Cash Equivalents $5,904 $4,258
 Marketable Securities 4,480 6,451
 Accounts Receivable 1,668 1,806
 Inventory 1,966 1,706
 Other 86 127
 Total Current Assets 14,104 14,348
 Property and Equipment, net 2,039 2,125
 Other Assets 789 460
 Total $16,932 $16,933
 LIABILITIES AND
 STOCKHOLDERS' EQUITY
 Current Liabilities:
 Accounts Payable $903 $651
 Accrued and Other Liabilities 471 374
 Total Current Liabilities 1,374 1,025
 Stockholders' Equity 15,558 15,908
 Total $16,932 $16,933
 -0- 4/23/93
 /CONTACT: Investor Relations, Datasouth Computer Corporation, 704-523-8500 or 800-476-2120/
 (DSCC)


CO: Datasouth Computer Corporation ST: North Carolina IN: CPR SU: ERN

MM-SB -- CH011 -- 0299 04/23/93 17:38 EDT
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Publication:PR Newswire
Date:Apr 23, 1993
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