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VERSAR ANNOUNCES FIRST QUARTER RESULTS

 SPRINGFIELD, Va., Nov. 17 ~PRNewswire~ -- Versar, Inc. (AMEX: VSR), reported financial results for the fiscal 1993 first quarter period ended Sept. 30, 1992. Net service revenue for the quarter was $8,603,000, a 22 percent decrease from net revenue of $11,098,000 for the same period last year. Net loss for the quarter was $412,000, or 10 cents per share, compared to a net income of $81,000, or 2 cents per share for the comparable period a year ago.
 Ben Rawls, president and CEO of Versar, Inc., said: "The struggle against the recession during our turnaround program at Versar continues to put additional pressure on our profitability. The company's profitability has been negatively impacted by planned spending to support bids, proposals and other marketing activities as well as to maintain capacity to carry out work currently in backlog, selections and outstanding proposals. The result of these efforts is that proposals outstanding are at an all time high.
 "The major factors affecting the decline in net service revenue were the downsizing of our laboratory operations, decrease in volume at Versar Architects & Engineers, Inc., delays in receipt of follow- on government contracts, and the slowdown in private sector contracting related to environmental compliance. While we are not satisfied with the rate of revenue progress, the growth in new orders and backlog during the past two quarters is encouraging. Recent awards of note are the U.S. Army Toxic and Hazardous Materials Agency award to perform air pollution emission inventories at 24 Army facilities throughout the United States, and the EPA Office of Radiation Programs contract to perform support services, potentially over a five-year performance period. While we expect the Clinton~Gore administration to favor environmental firms such as ours, the impact will not be immediate.
 "Our efforts on more aggressive working capital management to reduce bank debt resulted in lower interest cost of $200,000, which was 34 percent lower than the same period, FY 1992."
 Rawls added: "For fiscal year 1993, our focus will remain on strengthening of marketing efforts and rebuilding company revenue, the reduction of debt and overhead costs, and the improvement of cash flow. I am confident we can continue to improve our level of performance. We are committed to the long-term profitability of the company."
 Versar is a full service environmental firm providing strategic planning, compliance management, remediation, and program management services to both government and industry, nationwide.
 VERSAR, INC. AND SUBSIDIARIES
 Consolidated Statements of Operations
 for the Three-Month Periods
 Ending Sept. 30, 1992, and 1991
 (Unaudited, in thousands, except per share amounts)
 1992 1991
 Gross Revenue $10,862 $14,847
 Purchased services and materials, at cost 2,259 3,749
 Net Service Revenue 8,603 11,098
 Contract costs 7,066 8,307
 Selling, general and administrative expenses 1,539 2,116
 Operating (Loss) Income (2) 675
 Other Expense (Income)
 Interest expense 396 596
 Income tax expense 14 25
 Loss (Income) from Continuing Operations (412) 54
 Income, Net of Tax from Discontinued Operations -- 27
 Net (Loss) Income $ (412) $ 81
 (Loss) per Share from Continuing Operations $ (.10) $ .01
 Income per Share from Discontinued Operations $ -- $ .01
 Net (Loss) Income per Share $ (.10) $ .02
 Weighted Average Number of Shares Outstanding 3,953 3,941
 -0- 11~17~92
 ~CONTACT: Versar Investor Relations, 703-750-3000~
 (VSR)


CO: Versar, Inc. ST: Virginia IN: SU: ERN

TW -- DC004 -- 1736 11~17~92 10:16 EST
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Publication:PR Newswire
Date:Nov 17, 1992
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