Electronic Fab Technology Corp. reports fourth-quarter sales and earnings.

GREELEY, Colo.--(BUSINESS WIRE)--Jan. 20. 1995--Electronic Fab Technology Corp. (NASDAQ:EFTC), an independent provider of manufacturing services to original equipment manufacturers (OEMs) in the electronics industry, announced sales and earnings for the three-month period ended Dec. 31, 1994.

EFTC reported net sales of $13,454,824 for the fourth quarter of fiscal year 1994. This represented an increase of 25.7 percent when compared to net sales of $10,780,837 for the comparable quarter of fiscal year 1993. For the full calendar year of 1994, the company reported that revenues grew 76.2 percent to $52,541,842 from $29,816,627 for the same period in 1993. EFTC stated that the revenue growth continued to be the product of increased shipments to new and existing customers, and the increase in material sales associated with turnkey manufacturing.

Net income for the fourth quarter of fiscal year 1994 was $368,003, a decrease of 28.4 percent from last year's fourth-quarter net income of $514,280. For the full calendar year of 1994, the company reported that net income grew 47.4 percent to $1,916,917 from $1,300,670 in 1993.

Earnings per share for the fourth quarter of fiscal year 1994 were 9 cents, compared to 20 cents for the same period a year ago. The weighted average shares outstanding for the fourth quarter of 1994 were 57.3 percent greater than for the same period a year ago due to the company's 1994 initial public offering. For the full calendar year of 1994, earnings per share were 53 cents, compared to 52 cents for the same period a year ago. Weighted average shares outstanding of 3,626,845 in 1994 were 46.1 percent greater than the 2,483,000 outstanding in 1993, again due to the company's 1994 initial public offering.

The company, which was founded in 1981, had total assets of $22,945,600 on Dec. 31, 1994.

Ken Schultz, president and chief executive officer, commented: "It's been a very exciting and productive year. Record sales and earnings levels were set. Near-record levels of quality and delivery performance were attained. Production capacity was virtually doubled. Certification under ISO 9002 quality standard was obtained. The financial condition of the company was strengthened considerably by a public offering of stock. Training and incentive programs for employees were improved and expanded. In November, Forbes magazine named EFTC one of the best small companies in America on the basis of a 22.8 percent average return-on-equity over five years. As a result of these and many other accomplishments, our fighting spirit and ability have never been greater, at a time when our prospects for the future have never been brighter.

"Therefore, we congratulate our employees for a job well done. We also thank our customers for the opportunity to do business. Finally, to our shareholders, we reaffirm our lasting commitment to maximizing the value of the company, and trust that the progress toward that goal which was made in 1994 will earn their continued enthusiasm and support."

EFTC's manufacturing services primarily involve the procurement, assembly and test of complex printed circuit boards using both surface mount and pin-through-hole technology, cables, electro-mechanical devices, and finished products. Its customers include prominent companies in the following areas of the electronics industry: computer peripherals, medical devices, telecommunications equipment, industrial controls and electronic instruments. -0-

                   Electronic Fab Technology Corp.
                      Condensed Balance Sheets
                            (unaudited)

                                              12/31/93      12/31/94
Assets
Current assets
Cash and cash equivalents                 $     43,879  $    153,483
Accounts receivable, net of
 allowance of $65,500 and $20,000            2,480,421     3,858,523
Inventories                                  4,639,969     7,479,374
Prepaid expenses and other current assets      134,655       199,969
Total current assets                         7,298,924    11,691,349
Property, plant and equipment, at cost       5,844,318    14,879,713
Less accumulated depreciation                2,188,893     3,162,155
Net property, plant and equipment            3,655,425    11,717,558
Other assets                                   217,817        70,177
                                         $  11,172,166  $ 23,479,084
Liabilities and Shareholders' Equity

Current liabilities
Note payable                             $     300,000  $          -
Current portion of long-term debt              244,433       170,000
Accounts payable                             3,273,461     3,606,645
Accrued expenses                               465,696     1,170,386
Income taxes payable                           611,790             -
Total current liabilities                    4,895,380     4,947,031

Long-term debt, net of current portion       2,539,337     3,230,000
Deferred income taxes                          190,918       312,660

Shareholders' equity
Preferred stock, 1 cent par value.
 Authorized 5 million shares; none
 issued or outstanding                               -             -
Common stock, 1 cent par value.
 Authorized 45 million shares;
 issued 2,368,500 and 3,891,110 shares          23,685        38,911
Additional paid-in capital                     505,316    10,016,035
Retained earnings                            3,017,530     4,934,447
Total shareholders' equity                   3,546,531    14,989,393

                                          $ 11,172,166  $ 23,479,084

                   Condensed Statements of Income
                            (unaudited)

                       Three Months Ended            Year Ended
                      12/31/93     12/31/94     12/31/93    12/31/94

Net sales          $10,780,302  $13,454,824  $29,816,626 $52,541,842
Cost of goods sold   9,259,157   12,232,269   25,771,882  47,203,148
Gross profit         1,521,145    1,222,555    4,044,744   5,338,694
Selling, general
 and
 administrative
 expense              645,000       585,560    1,758,823   2,315,082
Operating income      876,145       636,995    2,285,921   3,023,612
Other income
 (expense):
Interest expense     (71,888)       (69,103)    (236,917)   (175,400)
Other, net           (11,723)        19,934      (11,723)    110,120
                     (83,611)       (49,169)    (248,640)    (65,280)
Income before
 income taxes        792,534        587,826    2,037,281   2,958,332
Income tax expense   278,255        219,823      736,612   1,041,415
Net income        $  514,279   $    368,003  $ 1,300,669 $ 1,916,917
Income per
 common and common
 equivalent share $      .20   $        .09  $       .52 $       .53
Weighted average
 shares
 outstanding       2,525,000      3,972,259    2,483,000   3,626,845

CONTACT: Electronic Fab Technology Corp., Greeley

Stuart Fuhlendorf, 303/353-3100, ext. 370