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COMPUTER IDENTICS ANNOUNCES SECOND QUARTER 1993 RESULTS

 CANTON, Mass., July 22 /PRNewswire/ -- Computer Identics Corporation (NASDAQ: CIDN) reported its results today for the second quarter and first six months of 1993.
 For the three months ended June 30, 1993, the company reported a net loss of $282,000 or three cents per share on revenue of $4,912,000. This compares with net income of $23,800 on revenue of $5,411,000 for the second quarter of 1992. Revenue for the six months ended June 30, 1993, fell to $9,480,000 from $10,557,000 for the first half of 1992, a 10 percent decrease. The net loss for the first six months of 1993 was $1,330,000 or 14 cents per share, compared with net income of $474,000 for the same period of 1992.
 Richard C. Close, who became president and chief executive officer on May 1, 1993, said, "In addition to reflecting the impact of the company's transition to new management, the first half results reflect a continuation of the trends experienced in the first quarter. Sales remained soft in both North America and Europe, resulting in lower than planned levels of revenue. Earnings on sales were adversely affected both by a change in our mix of products sold and by reduced margins caused by increased price competition in our markets.
 "However, we are pleased to report that our backlog rose to $5,211,000 at the second quarter of 1993, compared with $3,136,000 at the end of March, 1993 and $2,422,000 at Dec. 31, 1992. Also of significance is the $2,400,000 contract signed with Canada Post in June of this year. To date major progress has been made on this contract, which should be completed in 1993.
 "A number of steps were taken in the second quarter to strengthen the company's competitive position for the future. First, the board of directors' appointed a new president and CEO, with direction to focus the company on a path of rapid and profitable growth. Second, to ensure the continued availability of our industry-leading products, expenditures on new product development are being increased from an average 6 percent of sales over the past three years to a planned 11 percent in the future. While this additional investment increases our 1993 operating expenses, it will yield important products in the first quarter of next year and should significantly improve our competitive market position.
 "Third, to better focus the company's other functional areas, four operational units were established effective June 1st.
 "John Shoemaker was recently appointed vice president of North American Sales and Marketing. He brings with him extensive experience in sales, marketing, and service at several major corporations. The North American Sales and Marketing operation was formed to increase sales in the United States, Canada and Mexico.
 "The North American Customer Support and Service has maintained a profitable and expanding business, while providing close support to the sales and marketing operation. It continues under the direction of Vice President Colleen Kelly.
 "The European Operations Unit has responsibility for the Computer Identics' business in Europe. It includes the subsidiary companies in the United Kingdom, Belgium, France, and Germany and provides a consolidated approach to continuing the expansion of our business in Europe. Formerly the Director of our subsidiary in the U.K., Frank Waterworth has assumed the position of Managing Director of European Operations.
 "Tom Smith continues as Export Manager to the Rest of the World (ROW). Sales to ROW, while still small, are increasing at a rapid rate.
 "In a very short time, much work has been done to recreate a growing, vibrant business. The effect of these efforts should be increasingly visible in the future. More work is needed, however, to reposition Computer Identics to the forefront of the automatic data collection industry. Supported by a dedicated and knowledgeable group of employees, the management team is committed to the successful accomplishment of that goal."
 Computer Identics Corporation designs, manufactures and services bar code products and systems for factory data collection and material handling applications in warehousing, distribution and manufacturing environments.
 COMPUTER IDENTICS CORP.
 CONSOLIDATED STATEMENT OF OPERATIONS
 (All amounts in thousands, except per share data)
 Three Months Ended Six Months Ended
 June 30 June 30
 1993 1992 1993 1992
 Net Revenue $4,912 $5,411 $9,480 $10,557
 Cost of Revenue 2,747 2,505 5,311 4,958
 Gross Profit 2,165 2,906 4,169 5,599
 Operating expenses
 Selling general and
 administrative 1,996 2,182 4,589 4,188
 Research and development 461 434 929 809
 Total 2,457 2,616 5,518 4,997
 (Loss) Income from
 Operations (292) 290 (1,349) 602
 Interest income 13 8 26 16
 Interest expense (3) (3) (5) (6)
 (Loss) earnings before
 provision for income taxes (282) 295 (1,328) 612
 Provision for income taxes --- (57) (2) (138)
 Net (loss) income $(282) $238 $(1,330) $474
 Net (loss) income per share $(.03) $.02 $(.14) $.05
 Weighted average number of
 common and common
 equivalent shares
 outstanding 9,858,350 10,444,163 9,822,758 10,395,393
 -0- 7/22/93
 /CONTACT: Richard C. Close, president, or Stephen D. Prendergast, vice president of finance, both of Computer Identics, 617-821-0830/
 (CIDN)


CO: Computer Identics ST: Massachusetts IN: CPR SU: ERN

DJ -- NE013 -- 4775 07/22/93 16:44 EDT
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Date:Jul 22, 1993
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