Datron Systems announces second quarter fiscal 1996 earnings.

ESCONDIDO, Calif.--(BUSINESS WIRE)--October 24, 1995--Datron Systems Incorporated (Nasdaq:DTSI) today announced results for its second quarter of fiscal 1996 ended September 30, 1995.

Net income for the quarter increased 9% to $840,000 or $0.32 per share compared with net income in the second quarter last fiscal year of $773,000 or $0.30 per share. Net sales for the second quarter were $17,445,000, an 8% increase from second quarter net sales last fiscal year of $16,088,000.

Net income for the six months ended September 30, 1995 increased 8% to $1,255,000 or $0.47 per share, compared with net income of $1,166,000 or $0.45 per share for the comparable period last fiscal year. Net sales for the six months were $31,801,000, a 13% increase from net sales of $28,220,000 for the first six months last fiscal year.

New order bookings for the second quarter were strong at $28.0 million yielding a bookings to sales ratio of 1.6 to one. Significant orders booked for the quarter included an order in the amount of $8.8 million for a remote sensing image processing facility for a Middle Eastern customer and two radio products orders from the Far East which contributed an additional $11.1 million.

David A. Derby, president and chief executive officer, stated, "During this quarter, the Company continued to invest heavily in the pursuit of new commercial markets. Year-to-year comparisons for the first half show investment in R&D has increased more than 140%. At the same time, investment in new markets during the period increased over $1 million. We are pleased we have the resources to make these investments, which are primarily being directed toward the Direct Broadcast Satellite (DBS) television market for the mobile user. Products we are developing serve a market for recreational vehicles, long-haul trucks, and commercial and business aircraft that we believe exceeds $3 billion. Our efforts are directed towards obtaining and maintaining a dominate position in this untapped market."

Datron Systems provide products and services addressing the needs of emerging radio and satellite communication markets. -0-

                        DATRON SYSTEMS INCORPORATED
                   CONSOLIDATED STATEMENTS OF OPERATIONS
                 (In thousands, except per-share amounts)
                                (Unaudited)

                         Second Quarter Ended          Six Months Ended
                              September 30,                 September 30,
                            1995      1994                 1995      1994

Net sales                $17,445   $16,088             $31,801   $28,220
Cost of sales             11,559    11,477              20,555    19,469
Gross profit               5,886     4,611              11,246      8,751

Selling, general and
  administrative            3,809     2,934              7,503     6,075
Research and development      704       369              1,699       703
Operating income            1,373     1,308              2,044     1,973

Interest expense - net        (15)      (65)               (17)      (89)
Income before taxes         1,358     1,243              2,027     1,884
Income taxes                  518       470                772       718

Net income               $    840  $    773            $ 1,255   $  1,166

Net income per share     $   0.32  $   0.30           $   0.47  $    0.45

Average shares
  outstanding               2,663     2,594              2,656      2,558

CONTACT: Datron Systems Incorporated, Escondido

William L. Stephan, [phone]

or

Morgen-Walke Associates

June Filingeri, Robert Weiner, Jennifer Miller 

[phone]

Media contact: Miriam Adler 

[phone]