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COMPUTER NETWORK TECHNOLOGY ANNOUNCES RECORD FOURTH QUARTER AND ANNUAL RESULTS

 COMPUTER NETWORK TECHNOLOGY ANNOUNCES RECORD
 FOURTH QUARTER AND ANNUAL RESULTS
 MAPLE GROVE, Minn., Feb. 3 /PRNewswire/ -- Computer Network Technology Corporation (NASDAQ: CMNT) (CNT) today reported that revenue for the year ended Dec. 31, 1991, increased to $22.3 million, up 49 percent over $14.9 million in 1990. Net income for the year was $2.0 million, a 62 percent increase over $1.3 million in 1990. Per share net income increased to $.13 per share in 1991, up from $.09 per share in 1990.
 For the fourth quarter of 1991, CNT's revenue rose 54 percent to $7.7 million, up from $5.0 million during the same period in 1990. Net income for the 1991 fourth quarter was $1.4 million, a 79 percent increase over $.8 million during the same period in 1990. Per share net income in the fourth quarter increased to $.08 per share, up from $.06 per share during the same period in 1990.
 In 1991, revenue from North American end user customers totaled $17.4 million, up 40 percent over last year's $12.4 million. Revenue from sales to international distributors increased 98 percent in 1991 to $4.2 million, up from $2.1 million in 1990.
 Mac Lewis, CNT's president and CEO, commented, "We are very pleased to report record annual and quarterly results in both revenue and net income. Our 1991 fourth quarter earnings alone exceeded income for the entire year in 1990. We also finished 1991 in strong financial position, with over $6.5 million in cash and marketable securities and over $15 million in shareholders' equity."
 Lewis continued, "We believe our solid finish in 1991 is attributable to strong order levels from our new German distributor and the growing marketplace awareness that CNT provides products and services that are cost effective solutions for today's complex networks. We now have over 635 systems installed at over 95 customers around the world. We continue to experience strong repeat business from our existing customers with over 55 percent of our equipment sales in 1991 coming from current clients."
 CNT reported 21 new North American end user customers in 1991, including six in the fourth quarter. These new customers include Ameritech Services, Inc.; Bemis Company Inc.; FMC Corporation; Federal Reserve Bank of Kansas City; J.C. Penney Company, Inc.; Kemper Service Company; Storage Technology Corporation; Sumitomo Bank of California; Toronto Transit Commission; Troll Associates, Inc.; and Wisconsin Electric Power Company.
 CNT also reported 12 new international customers in 1991, including Komatsu Ltd., Koyo Seiko Co. Ltd., Kyushu Matsushita Electric Co. Ltd., Mitsubishi Petrochemical Co. Ltd., Mitsubishi Cable Industries, The Proctor & Gamble Company (Japan), Promise, Toagosei Chemical Industry Co. Ltd. in Japan and Dixon Stores in the United Kingdom.
 Lewis concluded, "Many of our customers purchase CNT's line of high speed extended channel networking systems as a key element in their strategy to reduce data processing costs by consolidating data center operations. We believe many of our current customers and prospects will continue this trend in 1992. While we are keeping our eye on the potential impact of the slow economy on our prospects' expense plans, we continue to see strong interest within our customer and prospect base for our 'solutions oriented' products and services."
 Computer Network Technology Corporation develops, manufactures and markets high speed extended channel networking products for the interconnection of mainframe computers, data base computers and peripheral devices over unlimited distances. The company's common stock is traded on the NASDAQ National Market System under the symbol CMNT.
 COMPUTER NETWORK TECHNOLOGY CORPORATION
 STATEMENTS OF OPERATIONS
 Three Months Ended Year Ended
 12/31/91 12/31/90 12/31/91 12/31/90
 (unaudited)
 Revenue:
 Equipment sales $6,898,873 $4,535,295 $19,726,993 $13,612,582
 Service fees 822,209 466,808 2,550,932 1,321,402
 Total revenue 7,721,082 5,002,103 22,277,925 14,933,984
 Costs and expenses:
 Cost of equipment
 sales 1,806,953 1,048,917 4,818,829 3,194,536
 Cost of services 874,706 530,275 2,999,362 1,622,368
 Sales and marketing 1,824,037 1,518,466 6,472,737 4,706,048
 Engineering and
 development 1,390,563 761,472 4,330,605 2,909,112
 General and
 administrative 352,684 346,961 1,471,477 1,130,712
 Total costs and
 expenses 6,248,943 4,206,091 20,093,010 13,562,776
 Income from
 operations 1,472,139 796,012 2,184,915 1,371,208
 Other income (expense):
 Interest income 105,153 42,745 205,914 51,585
 Interest expense (37,642) (22,084) (139,671) (46,326)
 Other income (expense) (8,623) 15,932 (24,484) 7,294
 Net other income 58,888 36,593 41,759 12,553
 Income before income
 taxes 1,531,027 832,605 2,226,674 1,383,761
 Provision for income
 taxes 130,000 50,000 185,000 120,000
 Net income $1,401,027 $782,605 $2,041,674 1,263,761
 Net income per common
 and common equivalent
 share $.08 $.06 $.13 $.09
 Weighted average number
 of common and common
 equivalent shares 17,130,432 13,719,893 15,229,932 13,525,665
 COMPUTER NETWORK TECHNOLOGY CORPORATION
 BALANCE SHEETS
 12/31/91 12/31/90
 ASSETS
 Current assets:
 Cash and cash equivalents $1,431,402 $2,466,049
 Marketable securities 5,081,128 --
 Accounts receivable 5,189,748 4,756,457
 Inventories 4,447,950 3,266,245
 Prepaid expenses 93,491 81,197
 Total current assets 16,243,719 10,569,948
 Property and equipment, net 3,435,841 1,472,008
 Field support spares, net 804,032 449,164
 Other assets 21,805 19,595
 Total assets $20,505,397 $12,510,715
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $1,160,105 $1,767,113
 Accrued expenses 1,500,575 979,170
 Deferred revenue 1,459,757 2,871,868
 Current installments of obligations
 under capital leases 393,657 234,857
 Total current liabilities 4,514,094 5,853,008
 Obligations under capital leases,
 less current installments 987,168 797,673
 Total liabilities 5,501,262 6,650,681
 Shareholders' equity
 Common stock, $.01 par value; authorized
 22,500,000 shares; issued and outstanding
 16,196,157 at Dec. 31, 1991, and
 13,743,813 at Dec. 31, 1990 161,962 137,438
 Additional paid-in capital 20,619,750 13,522,502
 Accumulated deficit (5,495,732) (7,537,406)
 Note receivable from officer/director (281,845) (262,500)
 Total shareholders' equity 15,004,135 5,860,034
 Total $20,505,397 $12,510,715
 -0- 2/3/92
 /CONTACT: John R. Brintnall of Computer Network Technology, 612-550-8000/
 (CMNT) CO: Computer Network Technology Corporation ST: Minnesota IN: CPR SU: ERN


AL -- MN010 -- 6309 02/03/92 16:02 EST
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