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AMERICAN POWER CONVERSION EARNINGS UP 83 PERCENT FOR FOURTH QUARTER OF 1992

 WEST KINGSTON, R.I., Feb. 11 /PRNewswire/ -- American Power Conversion Corporation (NASDAQ-NMS: APCC) today announced record sales and earnings for the fourth quarter and year ended Dec. 31, 1992.
 Sales for the fourth quarter of 1992 were $48.8 million, up 74 percent from $28.1 million for the fourth quarter of 1991. Earnings for the fourth quarter of 1992 were $9.9 million (22 cents per share), up 83 percent from $5.4 million (12 cents per share) in the fourth quarter of 1991.
 For the year ended Dec. 31, 1992 sales were $157.4 million, up 68 percent from $93.6 million for the same time period in 1991. Earnings for the 12 months ended Dec. 31, 1992 were $27.7 million (61 cents per share), up 78 percent from $15.5 million (34 cents per share) in the same time period in 1991.
 Earnings per share results are adjusted for a 2-for-1 stock split effected in December 1992.
 Rodger Dowdell Jr., president and chief executive officer, credited the results to continued strong acceptance of the company's products across several fast-growing markets, including computer networking, internetworking equipment, and point of sale (POS) devices.
 "Industry analysts have identified three 'waves' driving the information age," said Dowdell. "The first wave is computers linking together into networks. The second wave is networks linking into networks, using devices called bridges, hubs, and routers. The third wave is the extension and management of wide-area networks (WANS) which can link campuses, cities, or countries together in one electronic highway."
 "Although we shipped our millionth unit in 1992, we are still heavily focused on only the first wave. Applications appropriate to the second and third waves are an extremely small part of our current business," said Dowdell.
 According to Dowdell, 1992 was also characterized by strong growth in new geographic markets, strong demand for APC's new products, and a dramatic increase in market share.
 During the fourth quarter, the readers of LAN Times chose APC as the Best UPS Vendor for the fourth consecutive year. In addition, APC products took top honors in all eight categories in a study sponsored by Government Computer news.
 In addition to embarking on a test advertising campaign on CNN, the company also continued to sign new accounts, Other highlights included the signing of workstation manufacturer Data General's direct marketing branch, the award of a five-year GSA contract, and an 1,100 piece order from the United Nations to protect equipment in Cambodia.
 During the fourth quarter the company announced new Line-R a voltage regulator designed to correct brownouts and new high-end Smart-UPS (the Smart-UPS 2000 RM and 2000 XL at $2,399 and $1,999 list price respectively) specifically designed for telecom and internetworking applications.
 "Line-R represents an aggressive step into a market worth approximately $80 million in the U.S. alone." said Dowdell. "In addition, it is a strategic lever which helps us into accounts which require everything from A to Z in power protection."
 Based on industry estimates, Dowdell said the company took approximately five percentage points in U.S. market share during the course of 1992, ending the year with approximately 32 percent domestic share. Towards the end of 1992, the company introduced a suite of service plans designed to keep current APC customers satisfied for years to come, and to entice competitive users to try APC.
 These programs include a warranty extension program, and a program termed Trade-UPS in which competitive UPS products can be traded in for APC units at a discount.
 "An extremely competitive market has forced consolidation in the industry," said Dowdell. "In fact, many users who may have a current or future need to replace batteries may not be able to locate their original vendors."
 "Much like laser printer manufacturers benefitting from sales of consumable toner cartridges, APC now offers a quick, clean, cost- effective answer for all UPS users, even those with a competitive brand," said Dowdell. "As the installed base grows, these aggressive service programs should allow the company to take advantage of significant aftermarket opportunities."
 Dowdell said the company recently received a 1,000 piece order from Consumer Value Stores (CVS) to protect point of sales cash registers. Additional recent orders of significance also came from Thrifty's Inc., Royal Bank of Canada, Traveler's Insurance, and United Parcel Service.
 "Demand is strong across both our low-end and high-end product families," said Dowdell. On the low end, he noted that the Back-UPS 250 is the world's most popular UPS, quickly moving to the top of the UPS category on Ingram Micro's "Best Seller" list. Ingram Micro is one of the largest computer distributors in the world.
 "On the high-end, we continue to see good opportunity for new and better features to attract large computer sites to APC," said Dowdell. As an example, he said the company recently shipped its Simple Network Management Protocol (SNMP) Adapter, which allows any APC Smart-UPS to communicate over a network without the use of a server or workstation.
 "As the file-server is the most important piece of a LAN, the smart hub is the critical element in a wide-area network, or WAN," said Dowdell. "The additional control and cost savings embodied by an SNMP- equipped Smart-UPS gives network managers one more reason to protect all their internet equipment."
 Dowdell said the cost savings and performance advantages offered by a networked client server environment over the traditional mainframe or minicomputer platforms are the single biggest factor in the company's continued strong growth.
 According to industry estimates, the number of servers per network will more than double by 1995, while the average amount of data stored on each server will nearly triple to 882MB.
 "Users are storing more and more data on more and more servers. the more mission-critical these applications become, the more likely they are to be a potential APC customer," said Dowdell.
 American Power Conversion (NASDAQ-NMS: APCC) is a leading manufacturer of uninterruptible power sources (UPS) and related equipment and software which protects computers and similar power- sensitive electronic equipment from sags, spikes, blackouts and other power anomalies.
 AMERICAN POWER CONVERSION CORPORATION
 Consolidated Statements of Income
 For The Three Months Ended
 Dec. 31, 1992 Dec. 31, 1991
 Net Sales 48,851,418 28,108,459
 Cost of goods sold 22,591,101 13,866,293
 Gross profit 26,260,317 14,242,166
 Research and development 1,338,313 614,220
 Selling, general
 and administrative 9,514,077 5,032,756
 Total operating expenses 10,852,390 5,646,976
 Operating income 15,407,927 8,595,190
 Interest, net 88,130 51,476
 Other income 0 0
 Earnings before taxes 15,496,057 8,646,666
 Income taxes 5,499,200 3,176,961
 Net earnings 9,996,857 5,469,705
 Earnings per share 22 cents 12 cents
 Weighted Average Shares
 Outstanding 46,162,186 45,699,294
 AMERICAN POWER CONVERSION CORPORATION
 Consolidated Statements of Income
 For The Year Ended
 Dec. 31, 1992 Dec. 31, 1991
 Net Sales 157,461,894 93,623,691
 Cost of goods sold 78,259,851 48,047,334
 Gross profit 79,202,043 45,576,357
 Research and development 4,919,906 2,745,485
 Selling, general
 and administrative 31,452,232 18,674,378
 Total operating expenses 36,372,138 21,419,863
 Operating income 42,829,905 24,156,494
 Interest, net 241,695 (75,319)
 Other income 1,500 104,981
 Earnings before taxes 43,073,100 24,186,156
 Income taxes 15,291,000 8,619,000
 Net earnings 27,782,100 15,567,156
 Earnings per share 61 cents ? 34 cents
 Weighted average shares
 outstanding 45,772,327 45,434,712
 AMERICAN POWER CONVERSION CORPORATION
 CONSOLIDATED BALANCE SHEET
 Dec. 31, 1992 Dec. 31, 1991
 CURRENT ASSETS:
 Cash and cash equivalents $20,984,196 $12,169,384
 Accounts receivable, net 19,969,536 12,907,349
 Inventories 38,166,437 20,661,085
 Other current assets 3,613,105 1,171,397
 Total current assets 82,733,274 46,909,215
 Property, plant & equipment 19,718,038 13,288,446
 Less: accumulated
 depreciation 4,015,737 2,193,010
 Net property, plant &
 equipment 15,702,301 11,095,436
 Other long term assets 18,150 168,666
 Total assets $98,453,725 $58,173,317
 CURRENT LIABILITIES:
 Current installment of
 long term debt - $3,040,000
 Accounts payable 6,928,250 5,401,618
 Accrued expenses 10,661,641 4,331,286
 Income taxes payable 3,867,191 1,233,977
 Total current liabilities 21,457,082 14,006,881
 Deferred tax liability 1,038,000 514,000
 Total liabilities 22,495,082 14,520,881
 SHAREHOLDER EQUITY:
 Common Stock 439,250 215,214
 Additional paid in capital 13,179,181 8,879,109
 Retained earnings 62,340,212 34,558,113
 Total shareholder equity 75,958,643 43,652,436
 $98,453,725 $58,173,317
 -0- 02/11/93
 /CONTACT: Aaron Davis, director of corporate communications, 401-789-5735, ext. 2022; or Rodger Dowdell Jr., ext. 2023, of American Power Conversion/
 (APCC)


CO: American Power Conversion Corporation ST: Rhode Island IN: CPR SU: ERN

DD -- NE004 -- 5572 02/11/93 09:46 EST
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