Datron Systems announces third quarter fiscal 1995 earnings.

ESCONDIDO, Calif.--(BUSINESS WIRE)--Jan. 26, 1995--Datron Systems Incorporated (Nasdaq: DTSI) today announced results for the third quarter of fiscal 1995 ended December 31, 1994.

Net income for the quarter was $926,000 or $0.36 per share, compared with income of $750,000 or $0.30 per share in the third quarter of fiscal 1994 before the inclusion of after-tax income of $1,448,000 or $0.57 per share from the favorable settlement of a lawsuit. Net sales for the quarter were $18,151,000 compared with third quarter net sales last fiscal year of $18,325,000.

Net income for the nine months ended December 31, 1994 was $2,092,000 or $0.81 per share. This compares with income of $2,978,000 or $1.20 per share for the comparable period last fiscal year before including the after-tax income from the lawsuit settlement of $1,448,000 or $0.57 per share, an after- tax gain on the sale of a product line of $221,000 or $0.09 per share and a benefit of $407,000 or $0.16 per share from the adoption of SFAS 109 - "Accounting for Income Taxes." Net sales for the nine months were $46,371,000 compared with $53,358,000 for the first nine months last fiscal year.

David A. Derby, president and chief executive officer, stated, "We are pleased with the quarterly results. We have seen consecutive increases in sales and net income through the first three quarters, and we believe performance in the fourth quarter will show an even stronger sequential improvement. This belief is supported by strong bookings during the first nine months in both the radio and satcom segments of our business and by an order backlog at December 31, 1994 of $45.5 million, an increase of 9% since the beginning of the fiscal year and an increase of 43% from December 31, 1993."

Derby added, "An indicator of our successful penetration of the international communications market is that 78% of new orders during the first nine months were from international customers."

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

                           Datron Systems Inc.
              Consolidated Statements of Operations (Unaudited)
                 (In thousands, except per-share amounts)

                      Third Quarter Ended      Nine Months Ended
                          December 31,           December 31,
                        1994      1993         1994        1993

Net sales             $18,151   $18,325      $46,371     $53,358
Cost of sales          12,618    12,755       32,087      36,785
Operating expenses      4,004     3,942       10,782      10,903
Operating income        1,529     1,628        3,502       5,670
Interest expense - net    (45)     (252)        (134)       (690)
Other income              (16)    2,250(a)       (16)      2,594(b)
Income before taxes     1,468     3,626        3,352       7,574
Income taxes              542     1,428        1,260       2,927
Income before cumulative
 effect of accounting
 change                   926     2,198        2,092       4,647
Cumulative effect of
 change in accounting
 for income taxes          --        --          --          407
Net income             $  926    $2,198       $2,092      $5,054

Income per share:
Income before acctg
 change                 $0.36     $0.87        $0.81       $1.86
Cumulative effect of
 accounting change         --        --           --        0.16
Net income per share    $0.36     $0.87        $0.81       $2.02

Average shares
 outstanding            2,608      2,512        2,595      2,492

(a) Income from settlement of lawsuit.

(b) Includes income from lawsuit settlement and gain on sale of
    product line of $344,000.

CONTACT: Datron Systems Inc., Escondido

William L. Stephan, 619/747-3734

or

Morgen-Walke Associates

June Filingeri, Jennifer Miller 

212/850-5600

Media contact: Miriam Adler 

415/296-7383