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WEITEK REPORTS SECOND QUARTER RESULTS

 SUNNYVALE, Calif., July 19 /PRNewswire/ -- Weitek Corp. (NASDAQ: WWTK) reported revenue of $8,500,000 and a net loss of $800,000 (10 cents per share) in its second quarter ended July 3, 1993. Revenue in the second quarter of 1992 was $6,960,000 with a net loss of $2,080,000 (27 cents per share).
 For the first six months of 1993, Weitek posted revenue of $15,500,000 and a net loss of $2,185,000 (28 cents per share). Revenue in the first six months of 1992 was $13,960,000 with a net loss of $4,160,000 (55 cents per share).
 Revenue in the second quarter of 1993 increased by 21 percent compared to the first quarter of 1993 while the operating loss for the second quarter was trimmed by $585,000 compared to the prior quarter.
 Barry L. Cox, president and chief operating officer, stated "Shipments of our user interface products, paced by the Weitek Power 9000, continued to ramp during the second quarter and enabled Weitek to increase revenue on a quarter-to-quarter basis." Gross margins were 48 percent in the second quarter of 1993, compared to 50 percent in the preceding and prior year quarters, and reflected the incremental costs incurred to successfully qualify an additional source of wafer supply during the second quarter. Operating expenses in the second quarter were essentially flat compared to the first quarter of 1993 enabling the reduction of operating losses on a quarter-to-quarter basis.
 Cox continued, "In addition to making progress financially, in the second quarter we broadened our user interface product offerings with a device that enables the Weitek Power 9000 to support PCI, and introduced the Weitek SPARC POWER uP, a pin-for-pin microprocessor replacement upgrade for users of SPARCstation 2 and IPX workstations. We are pleased with the early market response to these new products, especially the SPARC POWER uP."
 Cox concluded, "We have made progress during the first half of 1993 to position the company well for the future. However, against the backdrop of what normally is a slow summer quarter in the semiconductor industry, we will need to see increased market acceptance of our user interface products, particularly the Power 9000, and will need to ramp the SPARC POWER uP into production during the third quarter of 1993 to continue the momentum built in the first half of the year."
 Weitek makes processors and controllers that enhance the performance of standard operating systems, user interfaces and application software. The company's products are used to build faster, more intuitive desktop computers and peripherals.
 WEITEK CORP.
 Consolidated Statements of Operations
 (In thousands, except per share amounts)
 Three Months Ended Six Months Ended
 July 3, June 27, Apr 3, July 3, June 27,
 1993 1992 1993 1993 1992
 Net revenue $ 8,500 $ 6,960 $ 7,000 $15,500 $13,960
 Cost of sales 4,405 3,465 3,497 7,902 6,945
 Gross margin 4,095 3,495 3,503 7,598 7,015
 Research and
 development 2,503 3,356 2,788 5,291 6,649
 Sales and
 marketing 1,955 2,292 1,670 3,625 4,626
 General and
 administrative 562 647 555 1,117 1,340
 Operating
 income (loss) (925) (2,800) (1,510) (2,435) (5,600)
 Other income 125 200 125 250 400
 Income (loss)
 before income
 taxes (800) (2,600) (1,385) (2,185) (5,200)
 Provision for
 (benefit of)
 income taxes -- (520) -- -- (1,040)
 Net income (loss) $ (800) $(2,080) $(1,385) $(2,185) $(4,160)
 Earnings (loss)
 per share $ (0.10) $ (0.27) $ (0.18) $ (0.28) $ (0.55)
 Weighted average
 common shares
 and equivalents 7,834 7,603 7,810 7,822 7,593
 WEITEK CORP.
 Consolidated Balance Sheets
 (In thousands)
 July 3, Apr. 3, Dec. 31,
 1993 1993 1992
 ASSETS
 Current assets:
 Cash and short-term
 investments $14,465 $15,089 $15,743
 Accounts receivable, net 4,381 3,609 2,562
 Inventories 1,135 1,928 1,494
 Income taxes receivable -- -- 2,337
 Deferred income taxes -- -- 59
 Prepaid expenses and other 675 855 543
 Total current assets 20,656 21,481 22,738
 Equipment and leasehold
 improvements, net 2,541 2,892 3,095
 Other assets 7 7 6
 Total $23,204 $24,380 $25,839
 LIABILITIES AND
 SHAREHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $ 3,545 $ 3,966 $ 4,600
 Accrued compensation
 and employee benefits 1,418 1,618 1,087
 Current portion of
 capitalized lease
 obligations -- -- 18
 Other current liabilities 713 936 902
 Total current liabilities 5,676 6,520 6,607
 Shareholders' equity:
 Common stock 20,905 20,437 20,424
 Retained earnings (deficit) (3,377) (2,577) (1,192)
 Total shareholders' equity 17,528 17,860 19,232
 Total $23,204 $24,380 $25,839
 -0- 7/19/93
 /CONTACT: Earl E. Fry, vice president of finance, Weitek Corp., 408-738-8400/
 (WWTK)


CO: Weitek Corp. ST: California IN: CPR SU: ERN

TM -- SJ004 -- 3216 07/19/93 16:05 EDT
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Date:Jul 19, 1993
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