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CHEMDESIGN REPORTS FIRST QUARTER OPERATING RESULTS AND RETURNS TO PROFITABILITY

 CHEMDESIGN REPORTS FIRST QUARTER OPERATING RESULTS
 AND RETURNS TO PROFITABILITY
 FITCHBURG, Mass., April 21 /PRNewswire/ -- ChemDesign Corporation (NASDAQ: CDCC) today announced sales for the quarter ended March 31, 1992, of $11.1 million, down 5.9 percent from $11.8 million reported for the same period in 1991 but up 30.3 percent from the $8.5 million reported for the fourth quarter of 1991.
 Net earnings for the quarter of $32,000, or break even on a per share basis, were down from $1.2 million, or 14 cents per share, reported for the first quarter of 1991 but up $863,000 when compared to the loss of $831,000, or 9 cents per share, reported for the fourth quarter of 1991.
 Gross margin for the first quarter of 1992 of $2.1 million was down significantly from the $3.8 million reported for the same period in 1991. The gross margin rate decreased to 19.0 percent from the 31.7 percent reported for the first quarter of 1991. When compared with the fourth quarter of 1991, gross margin increased $1.4 million from the $688,000 reported for the fourth quarter of 1991 and the gross margin rate increased to 19.0 percent from the 8.1 percent rate reported for the fourth quarter of 1991. Operating expenses of $1.8 million incurred in the fourth quarter of 1992 were flat and down slightly when compared to the first and fourth quarters of 1991, respectively.
 Richard E.T. Brooks, chairman and chief executive officer of ChemDesign, commented, "Operating results for the first quarter of 1992, although down from those for the first quarter of 1991, showed significant improvement over the results reported for the fourth quarter of 1991 and were generally consistent with our operating plan for the quarter. Although some of the manufacturing difficulties and corresponding reduced plant productivity that adversely affected operating results in the fourth quarter carried over, we succeeded in resolving most of them during the quarter. That, combined with the continuation of our comprehensive cost control program, contributed to the company's quick return to profitability."
 Brooks further commented, "In addition to the new products introduced and debugged during the past six months, we have several new product start-ups presently scheduled for late second quarter as well as production of existing custom products at attractive volumes forecasted by customers, all of which are expected to contribute to keeping our plants increasingly busy as 1992 progresses. If the economy remains sluggish, however, the timing and quantities of production of these products may be shifted somewhat by the customers, and thereby affect the company's near-term profitability."
 Brooks concluded his comments by noting, "Notwithstanding these near-term uncertainties, we remain satisfied with our current outlook for 1992 with overall financial performance improvement compared with 1991. We also see a real need for having the third manufacturing facility in Fitchburg available to start up in the first quarter of 1993. Efforts are underway to obtain approximately $3 million of new financing to fund the completion of that facility."
 CHEMDESIGN CORPORATION
 Financial Summary
 First Quarter ended March 31: 1992 1991
 Sales $11,122,843 11,817,345
 Net income 32,411 1,215,485
 Earnings (loss) per share 0 14 cents
 Average shares 8,838,338 8,898,625
 -0- 4/21/92
 /CONTACT: Steven E. Borgeson, senior vice president and general counsel, of ChemDesign, 508-345-9999/
 (CDCC) CO: ChemDesign Corporation ST: Massachusetts IN: CPR SU: ERN


SH -- NE015 -- 0834 04/21/92 16:02 EDT
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Publication:PR Newswire
Date:Apr 21, 1992
Words:586
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