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ARTISTIC GREETINGS INCORPORATED SECOND QUARTER 1993 RESULTS

 ELMIRA, N.Y., July 28 /PRNewswire/ -- Artistic Greetings Incorporated (NASDAQ: ARTG) today announced it lost $1,619,000, or $0.27 per share, for the second quarter ended June 30 versus a gain of $302,000, or $0.05 per share, for the 1992 second quarter.
 The company blamed the unexpected loss on poor response rates to its nationally advertised products which include labels, stationery mini- printers and personalized gift items.
 The company said it increased its advertising for the quarter in anticipation of better response rates. However, once it became apparent that consumers were not buying at the levels anticipated the company immediately began to restructure its advertising programs. Due to contractual commitments and the lead times for advertising placement, it was too late to substantially alter the second quarter advertising commitments, company officials said.
 The company also said part of the losses were attributed to expanded new product testing and start up costs associated with its foreign operations.
 Advertising programs have been restructured, control and measurement programs have been enhanced and cost reduction measures, including administration and indirect employee layoffs have been initiated. The company said it is forecasting earnings for the second half of this year to be below that of last year. However, it remains optimistic that the company will be profitable for the entire year.
 The quarter, historically the slowest of the year, showed sales of $15,598,000 versus $14,023,000 for the year earlier. Sales for the six months were $38,055,000 versus $32,042,000. Six months results were a loss of $0.08 per share versus a gain of $0.20 for the year earlier.
 The company sells and markets personalized products such as re- inkable stamps, address labels, Christmas and everyday greeting cards, stationery, pens, pencils, luggage tags and hundreds of gift items that feature personalization. The items are sold via newspapers, magazines and catalogs.
 ARTISTIC GREETINGS INCORPORATED
 Statement of Income
 (Unaudited)
 (000s omitted except per share data)
 Income Statement Data Quarter Ended Six Months Ended
 June 30 June 30
 1993 1992 1993 1992
 Net sales $15,598 $14,023 $38,055 $32,042
 (Loss) Income before taxes (2,389) 458 (714) 1,843
 Income taxes (770) 156 (243) 627
 Net (Loss) Income (1,619) 302 (471) 1,216
 (Loss) Earnings per share ($.27) $.05 ($.08) $.20
 Weighted Average Number of
 Common & Equivalent Common
 Shares Outstanding 6,030,075 5,954,555 5,999,827 5,975,554
 Balance Sheet Data June 30, 1993 June 30, 1992
 Cash And Marketable Securities $ 8,688 $ 6,529
 Current Assets 23,104 18,928
 Current Liabilities 10,827 6,746
 Working Capital 12,277 12,182
 Long Term Debt 2,009 2,311
 Shareholders' Equity Per Share $ 3.29 $ 2.97
 -0- 7/28/93
 /CONTACT: Richard Bast, vice-president finance, Artistic Greetings Incorporated, 607-737-5235, ext. 268/
 (ARTG)


CO: Artistic Greetings, Inc. ST: New York IN: HOU SU: ERN

KL -- CL027 -- 6976 07/28/93 17:32 EDT
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Publication:PR Newswire
Date:Jul 28, 1993
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