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DIGITAL COMMUNICATIONS EXPECTS FIRST QUARTER EARNINGS TO BE FLAT OR SLIGHTLY UP FROM PRIOR YEAR

 DIGITAL COMMUNICATIONS EXPECTS FIRST QUARTER EARNINGS
 TO BE FLAT OR SLIGHTLY UP FROM PRIOR YEAR
 ALPHARETTA, Ga., Sept. 3 /PRNewswire/ -- Digital Communications Associates Inc. (NYSE: DCA) today said earnings for its first quarter ending Sept. 30, 1992, may be flat to 5 to 10 percent higher than the 38 cents per share it reported during the same period last year and below current analysts' estimates.
 DCA said its earnings could be impacted by a decrease in the higher margin sales of PostScript and font cartridges, and an increase in the lower margin sales of a new, highly innovative large format ink-jet printer -- which began shipping in June -- at its Pacific Data Products, Inc. (PDP) subsidiary in San Diego.
 DCA said it expects its revenues for its first quarter to be approximately 20 percent higher than last year and in line with analysts' expectations.
 In its earnings report issued July 9, DCA noted a slowing of demand for its printer emulation products due to Windows 3.1 which contains TrueType capabilities that could diminish the need for some customers to purchase a separate PostScript cartridge such as PDP's PacPage.
 "During the first two months of the quarter, our PostScript and font cartridges have continued to experience slower demand as customers apparently began to use the printing capabilities in Microsoft's Windows 3.1," said C. "Garry" Betty, DCA president and chief executive officer.
 "While our PostScript and font business has slowed, we are experiencing good demand for our new ProTracer printer," said Betty. "The resulting product mix is having an adverse effect on our gross margins at PDP and, if this trend continues through the rest of the quarter, could impact the corporation's overall net income."
 DCA noted that its communications business, which includes its IRMA, IRMAtrac, Crosstalk and Unisys-related line of products, should meet the company's expectations for the quarter.
 "We believe that the fundamentals of our business are sound and that we will have a good fiscal year," said Betty. "Overall, we have a strong set of products and we will be introducing several new and exciting products during the year. We have recently launched a new planning strategy that we believe will enhance our growth potential through the end of the decade and we have a solid financial base."
 For its fiscal year ended June 30, 1992, DCA reported earnings of $19.7 million or $1.73 per share, up 28 percent over $15.4 million or $1.29 per share the previous year. DCA revenues were $209.4 million compared to $191.9 million for the previous year.
 Located 30 miles north of Atlanta, DCA designs, manufactures, markets and supports products worldwide that enhance the productivity of personal computer users.
 -0- 9/3/92
 /CONTACT: Media: William B. Marks, 404-442-4520, or, home, 404-987-9565, or Analysts: Kathleen J. Hassett, 404-442-4268, both of Digital Communications Associates/
 (DCA) CO: Digital Communications Associates Inc. ST: Georgia IN: CPR SU: ERP


BR-BN -- AT010 -- 6511 09/03/92 14:42 EDT
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Date:Sep 3, 1992
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