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COGNITRONICS THIRD QUARTER LOSS EQUAL TO 12 CENTS VS. 14 CENTS INCOME

 DANBURY, Conn., Nov. 12 /PRNewswire/ -- Reflecting the previously reported drop in sales of its voice processing equipment to switch manufacturers and delays in the introduction of new products, Cognitronics Corporation (AMEX: CGN), today reported a third quarter 1993 loss from continuing operations equal to $.12 per share compared with 1992 third quarter income from continuing operations equal to $.14.
 "As we indicated earlier, the third quarter loss from continuing operations also was affected by our decision to step up our research and development and marketing efforts and by a change in product mix resulting in lower gross margins," said Matthew J. Flanigan, president and chief executive officer of this leading supplier of voice processing equipment.
 The third quarter 1993 loss from continuing operations was $368,000 vs. $435,000 income from continuing operations in the 1992 third quarter. Additionally, the 1992 third quarter included a loss from discontinued operations of $89,000, or $.03 per share.
 Third quarter 1993 sales were $3.8 million, up from the $3.6 million reported a year ago. This increase came as a result of the acquisition of Dacon Electronics in November, 1992, but was substantially offset by lower sales of McIAS 2100 systems to switch manufacturers.
 For the nine months ended Sept. 30, 1993, income from continuing operations was $53,000, or $.02 per share, vs. $1,645,000, or $.51 per share, for the comparable period last year.
 Sales for the nine-month periods were $13.4 million in 1993, up from $11.9 million in 1992.
 As a result of the previously reported loss from discontinued operations and the cumulative effect of accounting changes recorded in the first quarter of 1993, Cognitronics reported a net loss of $701,000, equal to a loss of $.21 per share, for the nine months ended September 30, 1993. This compares to net income of $1,484,000, or $.46 per share, in the comparable 1992 period.
 "While we expect losses to continue in the fourth quarter, we believe that our continuing increased investment in research and development as well as in marketing will pay off as we seek new OEM contracts, expand our product lines, and open new domestic and European markets," Mr. Flanigan said.
 The company last week consolidated its operations and headquarters from three different sites to one in Danbury, Conn. "The operational efficiencies we gain are expected to begin to show in our 1994 results," according to Mr. Flanigan, "as will the sales of our new McIAS and Dacon product lines which we will begin shipping late in the 1993 fourth quarter."
 Cognitronics is a leading manufacturer and supplier of voice processing equipment, including telephone network and call management announcement products and interactive voice response (IVR) systems, to telephone operating companies, original equipment manufacturers and commercial end-users.
 COGNITRONICS CORPORATION
 Summary of Results
 Three Months Ended Sept. 30, 1993 1992
 Net Sales $3,815,000 $3,642,000
 Income (loss) from continuing
 operations $ (368,000) $ 435,000
 Loss from discontinued operations (89,000)
 Net income $ (368,000) $ 346,000
 Per share:
 Income (loss) from continuing $ (.12) $ .14
 operations
 Loss from discontinued
 operations (.03)
 Net income (loss) $ (.12) $ .11
 Weighted average number of shares
 outstanding 3,189,262 3,232,237
 Six Months Ended Sept. 30, 1993 1992
 Net Sales $13,428,000 $11,932,000
 Income from continuing operations $ 53,000 $1,645,000
 Loss from discontinued operations (283,000) (161,000)
 Cumulative effect of accounting
 changes (471,000) --
 Net income (loss) $ (701,000) $1,484,000
 Per share:
 Income from continuing $ .02 $ .51
 operations
 Loss from discontinued
 operations (.09) (.05)
 Cumulative effect of accounting
 changes (.14) --
 Net income (loss) (.21) $ .46
 Weighted average number of shares
 outstanding 3,321,983 3,201,326
 -0- 11/12/93
 /CONTACT: Harold F. Mayer, VP of Cognitronics, 203-830-3400/
 (CGN)


CO: Cognitronics Corporation ST: Connecticut IN: TLS SU: ERN

WB -- NY036 -- 3612 11/12/93 10:57 EST
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Publication:PR Newswire
Date:Nov 12, 1993
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