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PICTURETEL CORPORATION ANNOUNCES FIRST QUARTER REVENUE INCREASE OF 55 PERCENT

 DANVERS, Mass., April 22 /PRNewswire/ -- PictureTel Corporation (NASDAQ: PCTL), today reported a 55 percent increase in revenue for the first quarter of 1993 compared to the same period in 1992. Total revenues for the first quarter ended April 3, 1993 were $44.0 million on shipments of approximately 980 units compared with $28.4 million on shipments of 500 units for the same period in 1992.
 The company also reported first quarter net income, after provision for income taxes and the cumulative effect of a change in accounting principle, of $3.7 million or $.23 per share, ($.17 per share before a change in accounting principle, reflecting the company's adoption of FASB 109 in the first quarter of 1993), compared to $2.8 million, or $.18 per share, ($.12 per share before application of extraordinary credits and net operating loss carryforwards), for the same quarter of the prior year.
 The company also announced that it had received authorization from its board of directors to repurchase up to 1,000,000 shares of its common stock in the open market over the next two years. It intends to execute its repurchases through Goldman, Sachs & Co.
 "In the first quarter we reported our thirteenth consecutive quarter of revenue and earnings growth, " said Dr. Norman E. Gaut, chairman and chief executive officer of PictureTel. "We experienced strength this quarter from both our direct sales force as well as our growing distribution network. We believe that our stock price does not adequately reflect this history of strong financial performance nor our position as the market leader in the growing videoconferencing industry. Accordingly, we have received authorization from our Board to repurchase up to 1,000,000 shares in the open market which will be targeted for use in our employee stock option program and for other corporate purposes."
 PictureTel Corporation develops, manufactures and markets a full range of visual telecommunications solutions that are "Redefining the Way the World Meets." PictureTel enables worldwide video communications through an easy to use, dial-up family of standards-based videoconferencing systems.
 PICTURETEL CORPORATION
 Consolidated Statements of Income
 (in thousands, except per share data)
 Three Months Ended
 (unaudited)
 04/03/93 03/28/92
 Revenues $44,028 $28,361
 Cost of Sales $18,834 $12,562
 Gross Margin $25,194 $15,799
 Operating Expenses
 Selling, general
 and administrative $14,685 $ 9,636
 Research and development $ 7,081 $ 3,743
 Total operating expenses $21,766 $13,379
 Income from Operations $ 3,428 $ 2,420
 Other Income (Expense), net $ 776 $ 691
 Income before taxes,
 Extraordinary Credit and
 Cumulative Effect of Change in
 Accounting Principle $ 4,204 $ 3,111
 Provision for Income Taxes $ 1,555 $ 1,213
 Income before
 Extraordinary Credit and
 Cumulative Effect of Change in
 Accounting Principle $ 2,649 $ 1,898
 Extraordinary Credit (NOL) --- $ 933
 Cumulative Effect of Change in
 Account Principle $ 1,042 ---
 Net Income $ 3,691 $ 2,831
 Income per share before
 Extraordinary Credit and
 Cumulative Effect of Change in
 Accounting Principle .17 cents .12 cents
 Extraordinary Credit
 per share --- .06 cents
 Cumulative Effect of Change in
 Accounting Priniciple per
 share .06 cents ---
 Net Income per
 common share .23 cents .18 cents
 Weighted average number of
 common shares outstanding 15,978 16,125
 PICTURETEL CORPORATION CONSOLIDATED BALANCE SHEETS
 (IN THOUSANDS)
 04/03/93 03/28/92
 ASSETS
 Current assets:
 Cash and marketable securities $ 33,920 $ 61,288
 Accounts receivable, net $ 33,178 $ 27,388
 Inventories $ 11,971 $ 19,878
 Other current assets $ 1,800 $ 1,658
 Total current assets $ 80,869 $110,212
 Property and equipment, net $ 15,198 $ 10,079
 Capitalized software costs, net $ 3,742 $ 3,715
 Marketable securities $ 66,064 $ 25,557
 Deferred Taxes, net $ 7,029 ---
 Other assets $ 3,518 $ 2,039
 Total assets $176,420 $151,602
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Notes Payable $ 2,799 ---
 Accounts payable $ 7,165 $ 8,488
 Accrued expenses $ 11,864 $ 9,542
 Current portion of
 capital leases $ 3,836 $ 2,360
 Deferred revenue $ 5,692 $ 4,073
 Total current liabilities $ 31,356 $ 24,463
 Capital lease obligations $ 4,192 $ 3,735
 Total Liabilities $ 35,548 $ 28,198
 Total Stockholders' Equity $140,872 $123,404
 Total Liabilities and
 Stockholders' Equity $176,420 $151,602
 -0- 4/22/93
 /CONTACT: Joan Nevins of PictureTel Corporation, 508-762-5208; John Colbourn of Rourke & Company, 617-267-0042/
 (PCTL)


CO: PictureTel Corporation ST: Massachusetts IN: TLS CPR SU: ERN

CH -- NE022 -- 9701 04/22/93 16:30 EDT
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Copyright 1993 Gale, Cengage Learning. All rights reserved.

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Date:Apr 22, 1993
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