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ADVANCED MARKETING SERVICES INC. REPORTS SECOND QUARTER OPERATING RESULTS FOR FISCAL YEAR 1993

ADVANCED MARKETING SERVICES INC. REPORTS SECOND QUARTER OPERATING
 RESULTS FOR FISCAL YEAR 1993
 SAN DIEGO, Oct. 22 /PRNewswire/ -- Advanced Marketing Services, Inc. (NASDAQ: ADMS) (AMS) today reported net income of $123,000, or $.02 per share, for its second fiscal quarter ended Sept. 26, 1992, compared with net income of $57,000, or $.01 per share, for the second fiscal quarter of the previous year. Net sales during the second quarter increased 8 percent to $54,471,000 from $50,491,000 in the second quarter of fiscal 1992. The company is a leading supplier of general interest books to the membership warehouse club and office superstore industries.
 For the first six months of fiscal 1993, the company reported a loss of $38,000, or $.01 per share, compared to a loss of $215,000, or $.04, per share in the first six months of the prior year. Net sales for the first half were $101,560,000 compared to $86,518,000 in the prior year, a 17 percent increase.
 During the second quarter, AMS' net sales increase over the prior year's quarter was 8 percent vs. 31 percent in the first quarter. Comparative book sales for the quarter, those to customer locations which were in operation throughout the entire second quarter of the current and previous fiscal year, decreased 6 percent.
 Charles C. Tillinghast, III, president, said the slow-down in sales growth resulted from one major customer spreading its purchases among more book suppliers than in the past and generally increasing competition. Another factor was a lack of major best-selling novels during the quarter compared to last year. Other major customers continued to show healthy increases in their purchases from Advanced Marketing Services, he said.
 "We had anticipated the weaker best-seller season and are pleased to be able to report a slightly improved bottom line," Tillinghast said. "Our gross profit margins improved to 8 percent of sales in the second quarter, compared with 7.9 percent in the same period of the previous fiscal year.
 "For the Christmas season, which is our strongest, our customers' forecasts for their planned purchases show significant increases over last Christmas."
 Advanced Marketing Services Inc. provides product selection advice, specialized merchandising and product development programs, and distribution and handling services with respect to general interest books and related products sold primarily to membership warehouse clubs and office product superstores operating throughout the United States, Canada and Mexico.
 ADVANCED MARKETING SERVICES INC.
 Unaudited Comparative Financial Results
 (In thousands)
 Three months ended Six months ended
 Sept. 26, Sept. 28, Sept. 26, Sept. 28,
 1992 1991 1992 1991
 Statement of Operations
 Net sales $54,471 $50,491 $101,560 $86,518
 Cost of goods sold 50,088 46,518 93,307 79,403
 Gross profit 4,383 3,973 8,253 7,115
 Distribution and
 administrative
 expenses 4,176 3,753 8,374 7,278
 Income (loss) from
 operations 207 220 (121) (163)
 Interest and dividend
 income (expense), net 6 (127) 66 (180)
 Income (loss) before
 provision (benefit)
 for income taxes 213 93 (55) (343)
 Provision (benefit) for
 income taxes 90 36 (17) (128)
 Net income (loss) $123 $57 ($38) ($215)
 Net income (loss) per
 common and common
 share equivalent $.02 $.01 ($.01) ($.04)
 Weighted average number
 of common shares
 outstanding 5,357 5,353 5,357 5,353
 Common share
 equivalents(a) 172 --- --- ---
 As of Sept. 26, Sept. 28,
 1992 1991
 Condensed Balance Sheet
 Assets
 Cash and short-term investments $8,550 $2,951
 Accounts receivable 22,947 21,708
 Inventories 87,995 83,620
 Other current assets 2,027 2,289
 Total current assets 121,519 110,568
 Net property and equipment and
 other assets 2,389 2,555
 Total assets $123,908 $113,123
 Liabilities and Stockholders' Equity
 Notes payable --- $4,350
 Accounts payable and other current
 liabilities 85,864 72,753
 Total current liabilities 85,864 77,103
 Stockholders' equity 38,044 36,020
 Total liabilities and stockholders'
 equity $123,908 $113,123
 (a) Common share equivalents (for AMS outstanding stock options) are not included in earning per share calculation in loss periods or when otherwise antidilutive.
 -0- 10/22/92 R
 /CONTACT: Charles C. Tillinghast III, president, or Jon S. Fish, executive VP-finance, of Advanced Marketing Services, 619-457-2500/
 (ADMS) CO: Advanced Marketing Services Inc. ST: California IN: REA SU: ERN


JK -- SD004 -- 3900 10/22/92 17:54 EDT
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Date:Oct 22, 1992
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