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COMPUTER NETWORK TECHNOLOGY CORPORATION ANNOUNCES FIRST QUARTER GAINS IN INCOME AND REVENUE

 MAPLE GROVE, Minn., April 28 /PRNewswire/ -- Computer Network Technology Corporation (NASDAQ: CMNT) (CNT) today reported net income of $351,402, or $.02 per share, for the first quarter, ended March 31, 1993. This compares with net income of $131,628, or $.01 per share, for the first quarter of 1992.
 Revenue for the first quarter of 1993 was approximately $8.9 million, a 46 percent increase from approximately $6.1 million for the prior year period. Orders for the quarter totaled $10.8 million, up 37 percent from $7.9 million in the 1992 first quarter.
 Commenting on these results, Mac Lewis, CNT's president and CEO, said, "We are off to a good start in 1993 with higher order levels, revenue and earnings. Net income rose 167 percent over the year-earlier period even though we incurred a 42 percent effective tax rate, up from 6 percent last year. In addition, revenue was the highest in our history for the first quarter and the second highest for any quarter overall. CNT recorded initial revenue from 28 new customers, increasing our customer base 18 percent in just one quarter."
 Lewis added, "We recently announced that CNT and WilTel, Inc. have agreed to co-market their products and services with a view toward providing asynchronous transfer mode (ATM) service later in 1993. CNT's recent announcement of its support for three emerging networking standards (ATM, SMDS and frame relay) illustrates our continuing commitment to investing in new products that will help our customers cost effectively implement the latest technologies in their rapidly changing, complex networking environments."
 Computer Network Technology Corporation, a leader in the channel networking industry, develops, manufactures and markets high speed channel networking systems. These systems serve the data networking needs of many of the world's largest corporations by connecting high performance computers, peripheral devices and LAN based networks in enterprise-wide backbone networks. CNT's common stock is traded on the NASDAQ stock market under the symbol CMNT.
 COMPUTER NETWORK TECHNOLOGY CORPORATION
 Consolidated Statements of Income
 (Unaudited)
 Three Months Ended
 3/31/93 3/31/92
 REVENUE:
 Equipment sales $7,263,197 $5,227,072
 Service fees 1,591,664 848,352
 Total revenue 8,854,861 6,075,424
 COST OF REVENUE:
 Cost of equipment sales 1,888,060 1,358,001
 Cost of service fees 1,639,801 1,034,904
 Total cost of revenue 3,527,861 2,392,905
 GROSS PROFIT 5,327,000 3,682,519
 OPERATING EXPENSES:
 Sales and marketing 2,719,727 1,856,942
 Engineering and development 1,488,413 1,354,378
 General and administrative 576,615 419,813
 Total operating expenses 4,784,755 3,631,133
 Income from operations 542,245 51,386
 OTHER INCOME (EXPENSE):
 Interest income 47,921 110,928
 Interest expense (33,104) (39,798)
 Other, net 44,340 18,112
 Other income, net 59,157 89,242
 Income before income taxes 601,402 140,628
 Provision for income taxes 250,000 9,000
 NET INCOME $351,402 $131,628
 NET INCOME PER COMMON AND
 COMMON EQUIVALENT SHARE $.02 $.01
 Weighted average number of
 common and common equivalent
 shares 18,007,554 17,178,062
 COMPUTER NETWORK TECHNOLOGY CORPORATION
 CONSOLIDATED BALANCE SHEETS
 3/31/93 12/31/92
 (Unaudited)
 ASSETS
 Current assets:
 Cash and cash equivalents $4,573,733 $3,574,532
 Marketable securities 2,976,021 1,972,909
 Receivables 9,491,009 11,963,319
 Inventories 6,102,205 5,249,366
 Other current assets 464,793 314,983
 Total current assets 23,607,761 23,075,109
 Property and equipment, net 5,860,336 4,663,709
 Field support spares, net 1,205,040 1,318,957
 Goodwill and other intangible
 assets, net 980,385 1,132,515
 Other assets 95,809 105,082
 -- $31,749,331 $30,295,372
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $3,150,515 $3,311,126
 Accrued expenses 2,139,322 2,501,764
 Deferred revenue 4,411,398 3,171,576
 Current installments of obligations
 under capital leases 493,345 485,580
 Total current liabilities 10,194,580 9,470,046
 Obligations under capital leases,
 less current installments 513,670 622,463
 Total liabilities 10,708,250 10,092,509
 Shareholders' equity:
 Common stock, $.01 par value;
 authorized 30,000,000 shares;
 issued and outstanding
 17,282,735 at March 31, 1993
 and 17,027,288 at Dec. 31, 1992 172,827 170,273
 Additional paid-in capital 22,814,002 22,338,748
 Accumulated deficit (1,592,230) (1,943,632)
 Cumulative translation adjustment (353,518) (362,526)
 Total shareholders' equity 21,041,081 20,202,863
 -- $31,749,331 $30,295,372
 -0- 4/28/93
 /CONTACT: John R. Brintnall of Computer Network Technology, 612-550-8110/
 (CMNT)


CO: Computer Network Technology Corporation ST: Minnesota IN: CPR SU: ERN

AL -- MN011 -- 2222 04/28/93 16:03 EDT
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