Datametrics Corp. announces fiscal 1995 third-quarter results.

WOODLAND HILLS, Calif.--(BUSINESS WIRE)--Aug. 16, 1995-- Datametrics Corp. (ASE:DC) Wednesday announced results for its fiscal third quarter and nine-month period ended July 30, 1995.

The company reported revenue of $4.8 million for the third quarter compared with $5.9 million for the third quarter of fiscal 1994. Net loss for the period was $2.2 million, or 20 cents per fully diluted share, vs. net income of $27,000 for the same period a year ago. Per-share results reflect a 15 percent increase in shares outstanding resulting from an offering of 2.3 million shares in May 1995.

For the nine-month period, revenues were $12.1 million vs. $18.2 million for the comparable period of fiscal 1994. The company reported a net loss of $6.2 million, or 60 cents per fully diluted share, for the period, compared with a net loss of $186,000, or 3 cents per fully diluted share, for the same period a year ago. Again, per-share results reflect an increase in the number of shares outstanding.

Revenues for the quarter declined primarily due to a decrease in printer and workstation sales relating to the MILSTAR program, which should be completed during fiscal 1995. Contributing to the loss were lower gross margins resulting from a shift in product mix and significantly higher research and development expenses associated with Datametrics' high-speed commercial color digital printer and related products.

Sidney E. Wing, president and chief executive officer of Datametrics, said: "Our losses for the quarter were due primarily to continued heavy investment in developing and marketing our CYMax printer, and we have made significant progress toward achieving that goal. We believe that this continued level of investment in the development, manufacturing start-up, and marketing of our commercial color printer will begin to yield positive results in 1996.

During the quarter, we produced and delivered beta units to AB Dick, our distribution partner, for evaluation. All beta units incorporate the Adobe Postscript Level 2 software into the product's controller, which is to be tested and certified by Adobe before the end of the fiscal year. The Adobe software is one of the most sophisticated and universally utilized software standards in the graphics arts industry due to its open systems architecture and wide variety of software applications, plus its ability to generate consistent, high-quality color graphics.

"To assure that our printers will be properly maintained by an established, highly professional and extremely competent field service organization," added Wing, "during the quarter, we signed a multi-year product maintenance agreement with IBM Printing Systems Company to provide maintenance services for the CYMax family of high-speed color printers worldwide."

Wing continued, "We recently leased 10,000 square feet of manufacturing space in the immediate vicinity, where we will conduct final assembly and testing of the products. We have scheduled initial production deliveries from our new facility during the fourth quarter and ramping up for volume production in early 1996."

Wing added: "Also during the quarter, we completed a stock offering which netted proceeds of approximately $16.5 million to fund the continued development of our CYMax family of commercial high-speed color printer products."

In early May, the CYMax printer was announced by AB Dick Company at the DRUPA trade show in Dusseldorf, Germany, the world's largest printing exhibition, attracting approximately 400,000 attendees from more than 100 nations and more than 1,500 exhibitors. The product was also announced by Datametrics and demonstrated by AB Dick at the June 1995 On-Demand Trade Show in New York City. Both trade shows generated significant interest in the product and its performance.

Datametrics is a 32-year-old producer of computer peripherals and communications products for industrial, commercial and governmental markets. The company is primarily engaged in the design, development, manufacture and sale of high-speed color printers, high-resolution non-impact printer/plotters, ruggedized computers and workstations, and data entry keyboards. -0-

                        DATAMETRICS CORP.
                       Financial Highlights

                    Condensed Income Statement
                  (in 000s, except per-share data)

                       Three months ended        Nine months ended
                      7/30/95      7/31/94      7/30/95      7/31/94

Revenues              $ 4,790      $ 5,873      $12,138      $18,240
Net income (loss)      (2,166)          27       (6,216)        (186)
Earnings (loss)
  per share --
  primary and
  fully  diluted    (20 cents)          --    (60 cents)    (3 cents)
Weighted avg
  shares
  outstanding --
  primary and
 fully diluted         11,137        9,720       10,444        8,420

                           Condensed Balance Sheet
                            (in 000s, unaudited)

                                                7/30/95     10/30/94

ASSETS
Current assets                                  $26,814      $16,919
Property & equipment, net                         3,055        2,275
Deferred and other assets                           846          756
TOTAL ASSETS                                    $30,715      $19,950

LIABILITIES
Current liabilities                             $ 3,479      $ 4,558
Long-term debt                                    1,810          972
Other long-term liabilities                         590          759
Total stockholders' equity                       24,836       13,661
Total liabilities & stockholders' equity        $30,715      $19,950

CONTACT: Datametrics Corp., Woodland Hills

Sidney E. Wing, 818/598-6200

or

Silverman Heller Associates

Eugene G. Heller, 310/208-2550