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GENERAL COMPUTER REPORTS PROFITABLE RESULTS FOR THE FISCAL 1993 FOURTH QUARTER AND FULL YEAR

 TWINSBURG, Ohio, July 28 /PRNewswire/ -- General Computer Corporation (NASDAQ-NMS: GCCC) today reported higher sales for the fourth quarter and full fiscal 1993 year on a sharp increase in claims processing business, while net results were impacted by additional expenses incurred to develop long-term revenue programs.
 Sales for the quarter rose 18 percent to $4.3 million from $3.6 million last year on record volume in claims processing. As a result of the new-program expenses, net earnings were $213,000, equal to 11 cents per share on 13 percent more shares outstanding, versus $469,000, or 27 cents per share, in last year's period.
 For the year, General Computer recorded sales of $15.0 million, a 13 percent gain over last year's sales of $13.2 million. Net earnings increased to $800,000 from $706,000 last year. Net earnings per share were 43 cents, on 11 percent more shares outstanding, compared with 42 cents last year.
 Richard R. Pilarczyk, president and chief executive officer, said, "The final period of the year represented one of the largest for claims in our history, enabling us to process a record 68 million claims for fiscal 1993. This level represents new annualized volume of 86 million claims. While we are pleased with the 1993 volume, it would have been higher if the contracted state claims we were prepared to receive had come through as planned in the second half."
 Pilarczyk noted that additional development expenses incurred late in the year were not offset by the increased revenues, which had an unfavorable impact on net results. "We made an investment during the fourth quarter to further strengthen our long-term position in managed care. Building on our proven abilities in claims processing, we began the development of a pharmaceutical formulary to benefit our customers. We also initiated a computerized verification eligibility system for physicians who are required to comply with new state Medicaid rules.
 "These initiatives will keep us on the leading edge of reform in healthcare administration, and we expect them to make a contribution in fiscal 1994 and beyond," he concluded.
 System sales, while below last year's fourth quarter, continued the trend in fiscal 1993 of improving each quarter.
 General Computer Corporation is a leading provider of electronic systems and services for pharmacies, physicians and the healthcare industry.
 GENERAL COMPUTER CORPORATION
 STATEMENTS OF EARNINGS
 (In thousands except per share amounts)
 Quarter Ended Year Ended
 May 31, May 31, May 31, May 31,
 1993 1992 1993 1992
 Sales
 Services:
 Claims processing $2,434 $1,722 $8,360 $6,555
 Other 992 931 4,199 3,930
 3,426 2,653 12,559 10,485
 Systems 861 983 2,398 2,689
 Lease operations 0 8 5 64
 Total sales 4,287 3,644 14,962 13,238
 Cost of sales:
 Services 1,723 1,277 6,300 5,030
 Systems 871 744 2,820 2,859
 Total 2,594 2,021 9,120 7,889
 Gross profit 1,693 1,623 5,842 5,349
 Expenses
 Selling 750 518 2,525 2,008
 General & administrative 712 557 2,313 2,225
 Total operating
 expenses 1,462 1,075 4,838 4,233
 Operating profit 231 548 1,004 1,116
 Interest expense (49) (85) (288) (438)
 Sundry income 31 6 84 28
 Earnings before
 income taxes 213 469 800 706
 Income taxes (B) 0 0 0 0
 Net earnings $ 213 $ 469 $ 800 $ 706
 Net earnings per
 common share $ .11 $ .27 $ .43 $ .42
 Common stock and
 equivalents 1,951 1,722 1,878 1,695
 (A) On July 31, 1992, the Company acquired all of the outstanding capital stock of Mavis Industries, Inc. ("Mavis") in exchange for 41,973 shares of the Company's company stock, valued at $19.06 per share. The acquisition has been accounted for by the purchase method. Accordingly, the statement of operations includes the results of Mavis' operations from Aug. 1, 1992
 (B) There is no provision for income taxes as net operating loss carryforwards offset taxable income.
 -0- 7/28/93
 /CONTACT: David R. Stitt of General Computer Corp., 216-425-3241, or William L. Dupuy of Edward Howard & Co., 216-781-2400, for General Computer Corp./
 (GCCC)


CO: General Computer Corp. ST: Ohio IN: CPR MTC SU: ERN

AR -- CL019 -- 6837 07/28/93 15:07 EDT
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Publication:PR Newswire
Date:Jul 28, 1993
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