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ELECTROMAGNETIC SCIENCES ANNOUNCES 1992 FINANCIAL RESULTS

 ATLANTA, Feb. 4 /PRNewswire/ -- Electromagnetic Sciences, Inc. (NASDAQ: ELMG) today reported consolidated net earnings for the full year 1992 of $924,000, or $.10 per share, including a consolidated net loss of $1,210,000, or $.18 per share, for the fourth quarter.
 Consolidated net sales for the year 1992 were $71.8 million and for the fourth quarter of 1992 were $16.7 million.
 Consolidated net earnings for the year 1991 were $6,401,000 or $.84 per share and included earnings from continuing operations of $7,456,000 (including a $3,638,000 after-tax gain on the initial public offering of the company's LXE subsidiary), a $1,425,000 net loss from discontinued operations, and a $370,000 gain from a change in accounting principle. For the fourth quarter of 1991, the company had consolidated net earnings of $1,232,000, or $.16 per share. Consolidated net sales for the year 1991 were $75.3 million and for the fourth quarter were $19.3 million.
 The company received a record $34.7 million of orders in the fourth quarter of 1992, resulting in a record $56.0 million consolidated backlog at Dec. 31, 1992; the consolidated backlog at the beginning of 1992 was $41.8 million. The LXE subsidiary accounted for a record $23.6 million of the consolidated backlog; the remaining $32.4 million represented a quarter-to-quarter increase of $11.4 million, and the highest backlog in over two years, for microwave and antenna operations, which are now conducted through EMS Technologies, Inc. ("EMS"), a wholly owned subsidiary.
 In commenting on the fourth quarter results, Dr. John E. Pippin, CEO, stated: "Throughout 1992 our microwave operations group -- now 'EMS' -- has worked to establish itself on a number of key programs in the commercial and defense satellite arena, as well as in certain other defense systems, with the anticipation of improved orders in the fourth quarter. During 1992, EMS also sought other commercial applications for its sophisticated technology, and it engaged in substantial contract manufacturing business to provide additional revenues in what has been a difficult market.
 "Indeed, more than $17 million of orders did materialize in the fourth quarter in primary business areas where EMS's technology and design expertise are important, albeit too late in the quarter to contribute to 1992 revenues. Furthermore, EMS is now in the initial stages of work on programs that offer potential for future commercial applications in electronic vision and high-data rate communications with aircraft and other vehicles. As a result, EMS ended 1992 with a substantially improved backlog of primary business and an expectation of additional such orders in the near term.
 "While the late timing of these important orders had some negative impact on earnings in the fourth quarter, the reported loss was substantially attributable to a previously unanticipated increase in the costs required to complete a small number of contract manufacturing programs, under which EMS provides manufacturing services but does not have significant engineering and design input; the financial recognition of these additional costs reduces EMS exposure under these contracts. On balance, we believe that our participation in contract manufacturing has benefited the company by helping to preserve EMS's manufacturing infrastructure, but EMS will de-emphasize future participation in this type of work, in part because market conditions have diminished its potential profitability. More important, our recent success in obtaining substantial new orders will allow EMS to concentrate its resources in primary business areas that are more important to EMS's long-term strategic development, such as satellite communications, commercial microwave applications and defense system upgrades.
 "In addition, new 'backbone' products for our LXE data communications systems appear to have been well received, and LXE booked record orders in the fourth quarter of approximately $18 million. Thus, LXE begins 1993 with a record backlog and a well-positioned new generation of products.
 "Overall, we enter 1993 with some optimism backed by strong backlogs at both EMS and LXE. We will continue to work diligently to build the fundamental strengths in our company."
 Electromagnetic Sciences, Inc. serves a variety of sophisticated wireless communications markets through three subsidiaries, EMS Technologies, Inc., LXE Inc., and CAL Corporation, in which a controlling interest was acquired in January 1993. EMS designs and produces microwave systems, antennas, subsystems and components for communications, surveillance, radar, and countermeasures applications in satellite, airborne and surface environments. CAL provides communications and other electronic systems for domestic and international space programs, as well as mobile satellite communications equipment, principally antennas and terminals for business aircraft and over-the-road trucks. LXE (NASDAQ: LXEI) designs and produces wireless data communications systems for real-time transaction processing in materials handling operations.
 ELECTROMAGNETIC SCIENCES, INC. AND SUBSIDIARIES
 Consolidated Statements of Operations
 (In thousands, except earnings per share)
 Qtr. ended Year ended
 12/31/92 12/31/91 12/31/92 12/31/91
 Net sales $ 16,702 $ 19,340 $ 71,822 $ 75,340
 Cost of sales 11,812 10,901 44,407 46,506
 Selling, general and
 administrative exps. 4,924 4,333 17,786 15,789
 Research and dev. exps. 1,653 1,939 7,518 6,609
 Operating income (loss) (1,687) 2,167 2,111 6,436
 Gain on initial public
 offering of LXE common stk. --- --- --- 5,867
 Interest and other income 123 241 776 831
 Interest expense (37) (37) (81) (164)
 Earnings (loss) from cont. opers.
 before income taxes, LXE
 minority interest and
 acctg. change (1,601) 2,371 2,806 12,970
 Income tax expense (benefit) (587) 881 1,038 4,909
 LXE minority interest 196 258 844 605
 Earnings (loss) from continuing
 operations before
 acctg. change (1,210) 1,232 924 7,456
 Loss from discontinued
 operations (net of income
 taxes) --- --- --- (1,425)
 Earnings (loss) before
 accounting change (1,210) 1,232 924 6,031
 Cumulative effect of change
 in acctg. for inc. taxes --- --- --- 370
 Net earnings (loss) $ (1,210) $ 1,232 $ 924 $ 6,401
 Earnings (loss) per common and common equivalent share (adjusted
 for potentially dilutive effect of LXE stock options):
 From cont. operations $ (.18) $ .16 $ .10 $ .98
 From discont. operations --- --- --- (.19)
 From cumulative effect of
 change in accounting for
 income taxes --- --- --- .05
 Net earnings (loss) per common and
 common equiv. share $ (.18) $ .16 $ .10 $ .84
 Wtd. avg. common and common
 equivalent shares 6,780 7,718 7,331 7,605
 Condensed Consolidated Balance Sheet
 Dec. 31, 1992
 (in thousands)
 Cash and investments $ 12,678 Current liabilities $ 9,681
 Receivables 20,922 Long-term debt 927
 Inventories 10,060 Other liabilities 5,568
 Net property, plant Minority interest in
 and equipment 25,910 LXE 7,012
 Other assets 3,698 Stockholders' equity 50,080
 Total $ 73,268 Total $ 73,268
 -0- 2/4/93
 /CONTACT: Don T. Scartz, vice president - Finance, for Electromagnetic Sciences, 404-263-9200, ext. 4461/
 (ELMG)


CO: Electromagnetic Sciences, Inc. ST: Georgia IN: CPR SU: ERN

BR-BN -- AT007 -- 2959 02/04/93 12:01 EST
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