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AMERICAN MEDICAL ELECTRONICS SECOND QUARTER 1993 FINANCIAL RESULTS INCLUDE RECORD REVENUES, STRONG BALANCE SHEET

 DALLAS, July 21 /PRNewswire/ -- American Medical Electronics, Inc. (NASDAQ: AMEI), a manufacturer and distributor of advanced devices for orthopaedics and neurosurgery, today reported record revenues for the second quarter ended June 30, 1993.
 Second quarter 1993 revenues were $9,723,000, up 12 percent from $8,655,000 for the second quarter of 1992. Net income was $1,028,000 (15 cents per share), compared with $1,167,000 (15 cents per share) reported for the like quarter of 1992.
 For the first six months of 1993, revenues were $18,379,000, up 12 percent from $16,360,000 for the first six months of 1992. Net income was $2,226,000 (31 cents per share), including a non-recurring gain of $375,000 (5 cents per share) from the cumulative effect of the adoption of Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes," compared with $2,172,000 (28 cents per share) for the first six months of 1992. Income before the cumulative effect of the accounting change was $1,851,000 (26 cents per share), compared with $2,172,000 (28 cents per share) for the first six months of 1992.
 "During the second quarter, revenues were up from our Spinal-Stim(R) units. Also, new marketing programs for Physio-Stim(R), including the mid-June institution of a new product guarantee program, resulted in very encouraging revenue gains from those units, including a 22 percent increase over the first quarter of this year," said Joseph Mooibroek, president and chief executive officer.
 "While gross margin improved from the first quarter of this year, it was still less than the year-ago level, mainly due to higher research and development and quality assurance expenses allocated to manufacturing as we continue efforts to expand our product offering," Mooibroek said. "In addition, gross margin was affected by our higher sales of fixation devices -- which carry a lower margin than our stimulation products, increased refurbishment costs, and expenditures related to ongoing preparations for manufacturing of our implantable stimulator.
 "As in the first quarter, AME continued to emphasize product development activities, especially those concerning our implantable stimulator and various spine fixation products," Mooibroek said. "We now have eight applications pending Food and Drug Administration review -- four of them submitted during the first half of this year -- including the application for the Ogden Soft Tissue Anchor, to which we acquired rights during the quarter. With continuing delays in the FDA process, AME, like many other medical device companies, is actively seeking additional opportunities in the international marketplace.
 "AME continued its common stock repurchase program during the quarter, and as of the end of June had repurchased approximately 665,000 shares of the 1,000,000 shares authorized under the program," Mooibroek said. "The company continues to enjoy an excellent financial position, with no long-term debt and approximately $15.5 million in cash and marketable securities."
 AME produces and distributes medical devices used primarily by orthopaedic and neurosurgical professionals. The company's product lines include: the Spinal-Stim(R) System to enhance the healing of spinal fusions, Physio-Stim(R) bone growth stimulators for the healing of non-union fractures, the AME(R) Universal Bone Plate, the Halifax(R) Clamp cervical spine fixation system and the Carbon-One(TM) Halo System for patients suffering trauma or deteriorating cervical spine conditions.
 AMERICAN MEDICAL ELECTRONICS, INC.
 Consolidated Statements of Income
 (unaudited)
 Three Months Ended Six Months Ended
 June 30, June 30,
 ------------------ ----------------
 1993 1992 1993 1992
 ---- ---- ---- ----
 (In Thousands, except per share amounts)
 REVENUES $9,723 $8,655 $18,379 $16,360
 Cost of Revenues 2,288 1,876 4,378 3,488
 ------ ------ ------- -------
 Gross Profit 7,435 6,779 14,001 12,872
 Expenses:
 Selling, general and
 administrative 5,142 4,506 9,767 8,557
 Research and
 development 964 765 1,770 1,505
 ------ ------ ------ ------
 Income from
 Operations 1,329 1,508 2,464 2,810
 Other Income
 (Expenses):
 Gain on sale of
 marketable
 securities 130 -- 130 --
 Interest income 181 284 362 532
 Interest expense (14) (18) (27) (47)
 ----- ------ ----- -----
 Income Before Income
 Taxes and Cumulative
 Effect of Change in
 Accounting for
 Income Taxes 1,626 1,774 2,929 3,295
 Provision for Income
 Taxes 598 607 1,078 1,123
 ----- ------ ------ ------
 Income Before Cumulative
 Effect of Accounting
 Change 1,028 1,167 1,851 2,172
 Cumulative effect as of
 December 31, 1992 of
 change in method of
 accounting for income
 taxes -- -- 375 --
 ----- ------ ------ ------
 NET INCOME $1,028 $1,167 $ 2,226 $2,172
 ====== ====== ======= ======
 EARNINGS PER SHARE:
 Income Before Cumulative
 Effect of Accounting
 Change $ .15 $ .15 $ .26 $ .28
 Cumulative Effect of
 Accounting Change -- -- $ .05 $ --
 ------ ----- ------- ------
 Net Income $ .15 .15 $ .31 .28
 Weighted average shares
 outstanding for the
 period 6,977 7,858 7,255 7,887
 -0- 7/21/93
 /CONTACT: Joseph Mooibroek, president and CEO, 214-918-8383, or Wesley Johnson, vice president/finance and CFO, 214-918-8477, both of American Medical Electronics, Inc.
 (AMEI)


CO: American Medical Electronics, Inc. ST: Texas IN: MTC SU: ERN

JG -- DE024 -- 4210 07/21/93 18:16 EDT
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Date:Jul 21, 1993
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