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WYLE LABORATORIES POSTS STRONG SALES AND EARNINGS GAINS TO NEW RECORD HIGHS IN SECOND QUARTER

 WYLE LABORATORIES POSTS STRONG SALES AND EARNINGS GAINS
 TO NEW RECORD HIGHS IN SECOND QUARTER
 EL SEGUNDO, Calif., Aug. 24 /PRNewswire/ -- Wyle Laboratories (NYSE: WYL) reported record operating results in the second quarter ended July 31, 1992, reflecting a strong performance by its Electronics Marketing Group. Net income for the quarter increased 151 percent over the prior year on a 20 percent sales gain.
 For the quarter, net income totaled $3,812,000, equal to 37 cents per share (34 cents fully diluted), compared with $1,519,000, or 15 cents per share (primary and fully diluted) last year. Second quarter sales were $127.6 million vs. $106.5 million a year ago.
 Net income for the first half was $7,020,000, or 67 cents per share (62 cents fully diluted), up from $5,018,000, or 49 cents per share (46 cents fully diluted) in the prior year. Revenues for the six months of $250.3 million advanced 13 percent from $221.0 million in the comparable period last year.
 Charles M. Clough, chairman and chief executive officer, said: "We continue to achieve solid sequential improvement in earnings from previous quarters. Driven by the strengthening we've seen in the semiconductor market, operating results have shown a very positive trend since last year's depressed second quarter, which was adversely impacted by a sharp decline in certain microprocessor prices and margins.
 "While generating increased revenues, we have continued to emphasize tight cost control, productivity and asset management. As a result, selling and administrative expense as a percent of sales has improved significantly and, at 16.4 percent in the second quarter, represents one of the lowest levels in company history.
 "Second quarter sales of our Electronics Marketing Group climbed 27 percent from the year-earlier period to a record $105.1 million, reflecting growing demand for both semiconductors and computer products. Income of $6,324,000 was up sharply from last year's depressed level.
 "Our value-added activities continued to post solid gains during the quarter. Kitting and turnkey manufacturing, the group's highest growth area, more than doubled in revenues from the prior year, and incoming orders for these services remain at high levels. With more electronic equipment manufacturers outsourcing their inventory handling and assembly requirements, we expect to see increasing demand for our kitting and turnkey manufacturing activities.
 "Our four IDEAL(R) centers, which provide semiconductor design, programming and testing services, again turned in a good quarterly performance. To support growing customer demand for these value- added services, our fifth IDEAL center will be up and running during the third quarter in Austin, Texas.
 "Shipments of computer products grew 29 percent from the prior year. Demand for integrated desktop solutions and mass storage applications increased significantly, with end users and value-added resellers generating most of this growth.
 "The group again realized meaningful productivity gains, as annualized sales per employee reached $512,000 in the quarter, the highest ever for the group. We're also focusing on programs to improve asset utilization. Inventory turnover has improved dramatically, and we're now turning our total inventory at an annual rate of 5.7 times.
 "As to the current market environment, incoming order levels are robust, lead times remain extended on many devices, and inventories of semiconductors at the customer base continue at relatively low levels."
 Clough continued: "The Scientific Service & Systems Group posted second quarter sales of $22.5 million, slightly less than in the prior year, while income rose modestly. After a healthy first quarter in both sales and earnings, results in the second quarter were similar to the last three quarters of the previous year.
 "The commercial nuclear power industry continues to produce increased business for the group, primarily reflecting safety-related work in domestic and international markets. Additionally, we see growing opportunities for our core engineering and testing services with a variety of customers overseas, particularly in the Pacific Rim.
 "However, the aerospace/defense segment remains under pressure in the United States due to government funding cutbacks and uncertainties. In light of these shrinking markets, we are carefully reviewing the group's activities and will implement programs to align its cost structure with current market conditions."
 Clough concluded: "Based on the present business strength in the semiconductor market, we anticipate an excellent year in sales and earnings for the Electronics Marketing Group and another good year for the company overall."
 Wyle Laboratories is one of the nation's leading marketers of high-technology electronic products, specializing in semiconductors, computer systems and related value-added services. The company is also a major supplier of research, engineering, testing and support services to the aerospace, defense and energy industries.
 WYLE LABORATORIES
 Consolidated Statements of Operations
 (Unaudited)
 (000s omitted, except per share data)
 Second Quarter Ended Six Months Ended
 July 31, July 31,
 1992 1991 1992 1991
 Net sales $127,599 $106,491 $250,263 $221,040
 Costs and expenses 121,597 104,135 239,209 213,200
 Income before
 income taxes 6,002 2,356 11,054 7,840
 Income taxes 2,190 837 4,034 2,822
 Net income $3,812 $1,519 $7,020 $5,018
 Income per share:
 Primary $.37 $.15 $.67 $.49
 Fully diluted $.34 $.15 $.62 $.46
 Average common and
 common equivalent
 shares 10,433,000 10,222,000 10,410,000 10,221,000
 Sales and Income by Group
 Sales
 Electronics
 Marketing $105,080 $82,880 $201,636 $172,055
 Scientific
 Services &
 Systems 22,519 23,611 48,627 48,985
 Total $127,599 $106,491 $250,263 $221,040
 Income
 Electronics
 Marketing $6,324 $2,548 $11,369 $7,973
 Scientific
 Services &
 Systems 1,771 1,749 3,909 4,005
 Operating income 8,095 4,297 15,278 11,978
 General corporate
 expenses (1,430) (1,318) (2,811) (2,925)
 Interest expense, net (663) (623) (1,413) (1,213)
 Income before
 income taxes $6,002 $2,356 $11,054 $7,840
 -0- 8/24/92
 /CONTACT: The Foristall Co., 213-626-4524, for Wyle Laboratories/
 (WYL) CO: Wyle Laboratories ST: California IN: CPR SU: ERN


JB-LS -- LA007 -- 2441 08/24/92 08:33 EDT
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