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APPLIED RESEARCH CORPORATION POSTS FIRST QUARTER PROFIT

 LANDOVER, Md., Oct. 7 /PRNewswire/ -- Applied Research Corporation (Philadelphia Stock Exchange: ARL.X) announced today its results for the first quarter ended Aug. 31, 1993. The company's revenues for the quarter were $2,214,792, 20 percent above revenues during the same period last year. The increase in revenues during the quarter of $362,997 is attributed to increased revenues from the company's government contract operations of $258,176 coupled with a substantial increase in software product sales of $77,621.
 -- Government contract revenues contributed by Applied Research of Maryland, Inc. (ARM) increased primarily from an increase in billable direct cost of services of $231,092.
 -- Software product sales contributed by ARSoftware Corporation (ARS) increased 350 percent over 1992 levels. ARS maintained steady sales volume during the quarter of $33,000 per month.
 The company posted an operating profit of $95,515 for the three months ended Aug. 31, 1993, a 240 percent increase in profit over the three months ended Aug. 31, 1992.
 -- ARM posted an operating profit of $149,544 compared to $81,297 a year ago. This 84 percent increase in profit is attributed to a substantial increase in hiring during the quarter. ARM has added 11 new technical staff people since June 1, 1993 and anticipates continued staffing increases in the future. "ARM has instituted a very aggressive hiring posture as many new positions are beginning to open at government facilities," said Dr. S.P.S. Anand, president and CEO. "This new hiring, coupled with the recently awarded $24.9 million subcontract with Hughes will substantially increase ARM's contract base during future quarters and will have a positive impact on earnings for the year," Dr. Anand stated.
 -- ARS sustained and operating loss for the quarter of $54,029, approximating the loss sustained during the quarter ended Aug. 31, 1992. "ARS's base of software products must continue to grow to achieve profitability. We have several new products that we are currently negotiating exclusive rights to sell and have recently introduced our first proprietary product which will augment this base,' stated Dr. Anand.
 APPLIED RESEARCH CORPORATION
 (In thousands)
 Three months ended Aug. 31, 1993 1992
 Revenues $2,215 $1,852
 Operating income 96 28
 Net income (loss) 55 9
 Net income (loss) per share $ 0.01 $ --
 -0- 10/7/93
 /CONTACT: J. Andrew Moorer, chief financial officer of Applied Research Corporation, 301-459-8833, or Rodney O'Connor of Cameron Associates, 212-644-9560/
 (ARL)


CO: Applied Research Corporation ST: Maryland IN: SU: ERN

SH-OS -- NY058 -- 9824 10/07/93 14:45 EDT
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Publication:PR Newswire
Date:Oct 7, 1993
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