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COMPUTER NETWORK TECHNOLOGY ANNOUNCES THIRD QUARTER RESULTS, NEW CONTRACTS, AND NEW ITALIAN DISTRIBUTOR

 COMPUTER NETWORK TECHNOLOGY ANNOUNCES THIRD QUARTER RESULTS,
 NEW CONTRACTS, AND NEW ITALIAN DISTRIBUTOR
 MAPLE GROVE, Minn., Oct. 28 /PRNewswire/ -- Computer Network Technology Corporation (NASDAQ-NMS: CMNT) (CNT) today reported net income of $271,936, or approximately $.02 per share, for the third quarter, ended Sept. 30, 1992. This compares with net income of $132,002, or $.01 per share, for the same period in 1991. Results for the quarter were reduced by approximately $.02 per share as a result of the acquisition of CNT's new subsidiary in the United Kingdom. For the first nine months of 1992, net income was $1,197,498, or $.07 per share, as compared with net income of $640,647, or $.04 per share, for the first nine months of 1991.
 Revenue for the 1992 third quarter increased to approximately $7.2 million, up from $5.5 million for the third quarter a year ago. Revenue for the first nine months of 1992 was approximately $21.0 million, up 44 percent over the $14.6 million for the first nine months of 1991.
 CNT reported that it received net new orders during the third quarter of approximately $6.1 million. This net new order level reflects the reduction (from $2.5 million to $1.7 million) of a previously announced order from a large food distributor. CNT also reported that, while it has received orders totaling approximately $800,000 pursuant to a previously announced $2.2 million non-binding letter of intent from a Fortune 100 conglomerate, CNT does not anticipate receiving any additional orders from this customer in 1992.
 Commenting on these results, Mac Lewis, CNT's president and CEO, said, "We are pleased to report a 44 percent year-to-date growth in revenue and an increase of 87 percent in year-to-date net income. In addition, we are encouraged by the activity in our sales pipeline as we enter what has traditionally been our strongest quarter."
 Lewis continued, "We recently entered into new master purchase agreements with a regional Bell operating company and a large aerospace company. Initial orders under these two agreements totaled $1.0 million and we believe these customers will expand their use of CNT's products in 1993."
 CNT also announced today that it has appointed Sistema S.p.A. as the exclusive distributor of its CHANNELink(TM) line of Extended Channel Networking equipment in Italy. Sistema is a member of the Alcatel Italia group and had revenue of approximately $16 million USD in 1991. Sistema is experienced in the sales and support of local and wide area networks and communications equipment. Sistema is headquartered in Rome, with regional offices in Milan and Florence.
 Peter Dixon, CNT's vice president of International and managing director of CNT International Ltd., noted, "We are pleased to add Sistema to our growing list of European distributors. Sistema has developed excellent relationships with potential users of CHANNELink products in Italy and has illustrated the desire to make the appropriate investments for the successful introduction of CHANNELink products in Italy."
 Computer Network Technology Corporation develops, manufactures and markets high speed Extended Channel Networking products for the interconnection of mainframe computers, database computers and peripheral devices over unlimited distances. CNT's common stock is traded on the NASDAQ National Market System under the symbol CMNT.
 COMPUTER NETWORK TECHNOLOGY CORPORATION
 CONSOLIDATED STATEMENTS OF INCOME
 (Unaudited)
 Three Months Ended Nine Months Ended
 9/30/92 9/30/91 9/30/92 9/30/91
 Revenue:
 Equipment sales $5,693,953 $4,770,637 $17,501,026 $12,828,120
 Service fees 1,468,508 692,561 3,504,845 1,728,723
 Total revenue 7,162,461 5,463,198 21,005,871 14,556,843
 Costs and expenses:
 Cost of equipment
 sales 1,715,424 1,239,084 4,947,232 3,011,876
 Cost of services 1,253,462 855,960 3,411,060 2,124,656
 Sales and marketing 2,068,312 1,741,569 5,987,443 4,648,700
 Engineering and
 development 1,320,532 1,113,989 4,122,015 2,940,042
 General and
 administrative 484,142 360,646 1,348,314 1,118,793
 Total costs and
 expenses 6,841,872 5,311,248 19,816,064 13,844,067
 Income from operations 320,589 151,950 1,189,807 712,776
 Other income (expense):
 Interest income 86,975 36,684 300,821 100,761
 Interest expense (40,941) (38,819) (116,134) (102,029)
 Other expense (19,687) (3,813) (16,996) (15,861)
 Net other income
 (expense) 26,347 (5,948) 167,691 (17,129)
 Income before income
 taxes 346,936 146,002 1,357,498 695,647
 Provision for income
 taxes 75,000 14,000 160,000 55,000
 Net income $271,936 $132,002 $1,197,498 $640,647
 Net income per common
 and common equivalent
 share $.02 $.01 $.07 $.04
 Weighted average number
 of common and common
 equivalent shares 17,272,552 14,943,798 17,170,111 14,596,431
 CONSOLIDATED BALANCE SHEETS
 9/30/92 12/31/91
 (Unaudited)
 Assets
 Current assets:
 Cash and cash equivalents $7,205,397 $1,431,402
 Marketable securities -- 5,081,128
 Receivables 5,414,893 5,189,748
 Inventories 5,745,967 4,447,950
 Prepaid expenses 455,969 93,491
 Total current assets 18,822,226 16,243,719
 Property and equipment, net 4,730,429 3,435,841
 Field support spares, net 1,143,278 804,032
 Goodwill and other
 intangible assets, net 1,313,210 --
 Other assets 70,125 21,805
 -- $26,079,268 $20,505,397
 Liabilities and Shareholders' Equity
 Current liabilities:
 Accounts payable $2,775,078 $1,160,105
 Accrued expenses 1,961,400 1,500,575
 Deferred revenue 2,531,462 1,459,757
 Current installments of obligations
 under capital leases 471,052 393,657
 Total current liabilities 7,738,992 4,514,094
 Obligations under capital leases,
 less current installments 773,248 987,168
 Total liabilities 8,512,240 5,501,262
 Shareholders' equity:
 Common stock, $.01 par value;
 authorized 30,000,000 shares;
 issued and outstanding
 16,647,265 at Sept. 30, 1992
 and 16,196,157 at Dec. 31, 1991 166,473 161,962
 Additional paid-in-capital 21,691,616 20,619,750
 Accumulated deficit (4,298,234) (5,495,732)
 Cumulative translation adjustment 7,173 --
 Note receivable from officer/director -- (281,845)
 Total shareholders' equity 17,567,028 15,004,135
 -- $26,079,268 $20,505,397
 -0- 10/28/92
 /CONTACT: John R. Brintnall of Computer Network Technology, 612-550-8000/
 (CMNT) CO: Computer Network Technology ST: Minnesota IN: CPR SU: ERN


DS -- MN024 -- 6200 10/28/92 16:11 EST
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