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SHOPSMITH REPORTS FIRST FISCAL QUARTER FINANCIAL RESULTS

 SHOPSMITH REPORTS FIRST FISCAL QUARTER FINANCIAL RESULTS
 DAYTON, Ohio, July 28 /PRNewswire/ -- Shopsmith, Inc. (NASDAQ: SHOP) today reported revenues of $10.9 million for its seasonally slow fiscal first quarter ended June 30, 1992. These sales results are up 2.3 percent from the $10.7 million for the first quarter last year. The net loss in the first quarter of the current year was reduced by 12.0 percent to $320,000 or $.14 per share in the current year as compared to a net loss of $363,000 or $.16 per share in the same quarter last year.
 John R. Folkerth, chairman and chief executive officer, said, "The increased sales were caused by our offering a broader array of products made by other manufacturers and by selling price reductions which stimulated greater demand. Both of these steps squeezed gross margins but the decline in margins was offset by selling and administrative cost reductions."
 Folkerth went on to say, "In recent years, a number of firms have entered or expanded their manufacturing or retail efforts in the consumer woodworking market. This, particularly combined with the weak economy of the last couple of years, has led to intense price competition and heavy promotional activity.
 "More recently, apparently due to these developments, some firms have reduced their presence in the woodworking market or left the market entirely while still others are reported as preparing to do so. We feel this may provide Shopsmith, through our full-line Woodworking Unlimited stores, with an attractive opportunity to gain more of the woodworking market and to benefit from our stronger position when the intensity of current competitive turbulence slackens."
 According to Folkerth, the first six months of the company's fiscal year is its weakest period and, during the time, the company focuses on minimizing operating losses. The company is also continuing to reduce operating costs and to boost productivity.
 Shopsmith is the leader in the production and marketing of high quality multipurpose woodworking tools. The company markets approximately 4,000 products through mail order and through 45 company-owned retail stores in the U.S., Canada and Great Britain.
 Results for the three months
 Ended June 30, 1992 1991
 Revenues $10,913,000 $10,666,000
 Gross profit 4,700,000 5,200,000
 Loss before income taxes (449,000) (549,000)
 Net loss (320,000) (363,000)
 Loss per share $(.14) $(.16)
 Average shares outstanding 2,339,204 2,283,685
 -0- 7/28/92
 /CONTACT: Bill Becker, vice president-finance of Shopsmith, Inc., 513-898-6070; or Shirley Thompson, president of Carl Thompson Assoc., Inc., 303-494-5472, for Shopsmith/
 (SHOP) CO: Shopsmith, Inc. ST: Ohio IN: CST SU: ERN


KK -- CL005 -- 3837 07/28/92 08:37 EDT
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Publication:PR Newswire
Date:Jul 28, 1992
Words:450
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