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GEODYNAMICS CORPORATION ANNOUNCES FOURTH QUARTER OPERATING RESULTS

 GEODYNAMICS CORPORATION ANNOUNCES FOURTH QUARTER OPERATING RESULTS
 TORRANCE, Calif., Aug. 31 /PRNewswire/ -- Geodynamics Corporation (NASDAQ: GDYN) today announced the audited results of operations for its current fiscal year ended May 29, 1992.
 Revenues for the fiscal year ended May 29, 1992, were $58.4 million, down 5.9 percent from fiscal year 1991 revenues of $62.1 million. This revenue decline was primarily due to a 25 percent reduction in the company's two largest contracts as well as a termination for convenience due to funding curtailment of two other contracts. Net income and earnings per share were $2.06 million and 77 cents per share, respectively, as compared to $3.5 million and $1.22 per share (restated from the previously reported $1.35) for the prior 12-month period ended May 31, 1991. The restatement resulted from a misaccumulation of contract billings as of May 31, 1991, the prior fiscal year end which resulted in an overstatement of unbilled accounts receivable at May 31, 1991.
 Costs and expenses were $55.5 million in fiscal year 1992, down $1.3 million from the prior fiscal year and income from operations was $2.9 million, down from $5.3 million in fiscal 1991. This reflected a decline in the operating margin to 5 percent of revenues as compared to 8.6 percent in the prior fiscal year. Two factors contributed to this: the company's overhead rate was higher in fiscal year 1992. The other factor was the overspending of cost budgets on five programs. These are still expected to be profitable at completion, but at lower profit levels.
 Geodynamics anticipates lower overhead rates in fiscal 1993 due to several cost-cutting actions taken in fiscal 1992 including staff reductions, lowering certain employee benefit costs and eliminating several data processing support services.
 The company continues to make improvements in cash flows and liquidity. The aging of accounts receivable was 107 days in fiscal year 1992 as compared to 123 days in fiscal year 1991 and the magnitude of accounts receivable was $16.9 million at fiscal year end 1992 compared to $20.7 million at fiscal year end 1991.
 The company's backlog as of May 29, 1992, was at $130 million, up from $119 million at the end of CFY91. Fourth quarter revenues and net income were $15.4 million and $83,000 (6 cents per share), respectively, compared to $15.3 million and $571,000 (21 cents per share), respectively, in fiscal year 1991. For the 1991 quarter, net income and EPS was restated in the amounts discussed above. The decline in net income from the fourth quarter of fiscal 1992 resulted from the overspending on the five contracts discussed above.
 Geodynamics provides information engineering services and products for government, commercial and international information systems. The company specializes in custom end-to-end systems requirements definition, engineering software development, commercial off the shelf (COTS) hardware and software integration, test, training and maintenance for its customer base.
 -0- 8/31/92
 /CONTACT: Joanne M. Dunlap or David Nelson of Geodynamics, 310-782-7277/
 (GDYN) CO: Geodynamics Corporation ST: California IN: SU: ERN


CK -- NY007 -- 4790 08/31/92 08:02 EDT
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Publication:PR Newswire
Date:Aug 31, 1992
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