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CONTROL DATA SYSTEMS REPORTS THIRD QUARTER RESULTS

 ARDEN HILLS, Minn., Oct. 21 /PRNewswire/ -- Control Data Systems, Inc. (NASDAQ: CDAT) today reported 1993 third quarter net earnings of $1.0 million, or $.07 per share, on revenues of $97.1 million. For the 1992 third quarter, Control Data Systems reported net earnings of $0.2 million or $.02 per share, on revenues of $115.0 million. 1993 year-to-date net earnings are $.49 per share on revenues of $314.7 million.
 The company's quarter was negatively impacted by weak revenues and related operating margins from its European operations. The company indicated that it is taking further actions to reduce expenses in its European operations. The company announced that it expects continuing economic and market challenges in Europe to impact results for the fourth quarter and into 1994.
 "While we are pleased to report a small profit, we are not satisfied with our results this quarter," said Jim Ousley, president and CEO of Control Data Systems, Inc. "The weak European economy had a negative impact on our financial results. It is unfortunate that this region of our worldwide business adversely affected our results this quarter and for the year."
 "Our North American systems integration business continues to be strong, bolstered by new orders from commercial customers in the U.S. While several transactions in Asia slipped to the fourth quarter, business growth in this area is also positive," said Ousley.
 "We are pleased with the progress of our new relationship with Sun Microsystems Computer Corporation. We have also recently signed marketing agreements with Hewlett-Packard Company and Acer America Corporation and completed the acquisition of Antares Electronics, a Canadian systems integration company."
 Control Data Systems, Inc. is a global systems integrator, applying the skills and experience of its computer professionals -- Control Data Brainware(TM) -- to the implementation of open systems solutions for the operational problems of government and industry customers worldwide.
 CONTROL DATA SYSTEMS, INC.
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (Dollars in thousands, except per share data)
 Three Months Ended Nine Months Ended
 10/2/93 9/30/92 10/2/93 9/30/92
 Revenues $97,091 $114,961 $314,737 $365,387
 Cost of Revenues 58,820 65,366 188,410 220,194
 Gross Profit 38,271 49,595 126,327 145,193
 Operating Expenses:
 Selling, General and
 Administrative 33,604 36,139 101,544 122,647
 Technical 6,058 11,356 23,880 39,169
 Change in the
 Valuation of Spare
 Parts Inventory -- -- -- 14,900
 Restructuring -- -- -- 114,900
 Total Operating
 Expenses 39,662 47,495 125,424 291,616
 Earnings (Loss) From
 Operations (1,391) 2,100 903 (146,423)
 Other Income (Expense):
 Interest Expense (507) (563) (1,640) (1,777)
 Interest Income 1,404 466 4,793 1,137
 Other Income (Expense) 78 (327) 3,662 3,591
 Other Income (Expense),
 Net 975 (424) 6,815 2,951
 Earnings (Loss)
 Before Income Taxes (416) 1,676 7,718 (143,472)
 Provision (Benefit) for
 Income Taxes (1,398) 1,470 1,081 558
 Net Earnings(Loss) $982 $206 $6,637 $(144,030)
 Net Earnings (Loss)
 per Common Share and
 Common Share
 Equivalents $0.07 $0.02 $0.49 $(13.25)
 Weighted Average
 Common Shares
 Outstanding
 (in thousands) 14,250 11,679 13,616 10,869
 CONTROL DATA SYSTEMS, INC.
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (Dollars in thousands)
 10/2/93 1/2/93
 ASSETS
 Current Assets:
 Cash and Cash Equivalents $100,214 $134,423
 Trade and Other Receivables 105,501 110,059
 Inventories 60,360 50,059
 Prepaid Expenses and Other
 Current Assets 7,287 8,720
 Total Current Assets 273,362 303,261
 Property and Equipment, Net 30,773 33,490
 Leased and Data Center Equipment,
 Net 6,684 9,958
 Other Noncurrent Assets 50,850 26,813
 Total Assets $361,669 $373,522
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current Liabilities:
 Short-Term Debt $6,020 $2,643
 Restructure Reserves, Current
 Portion 27,352 29,000
 Other Accrued Expenses 108,656 110,802
 Total Current Liabilities 142,028 142,445
 Deferred Income Taxes 497 379
 Restructure Reserves, less
 Current Portion 10,678 31,398
 Pension Liabilities 30,579 30,325
 Other Noncurrent Liabilities 2,760 9,768
 Total Liabilities 186,542 214,315
 Stockholders' Equity 175,127 159,207
 Total Liabilities and
 Stockholders' Equity $361,669 $373,522
 -0- 10/21/93
 /CONTACT: Media Relations, Peter Gove, 612-482-4857, Investor Relations, Jerry Johnson, 612-482-2125, both of Control Data Systems/
 (CDAT)


CO: Control Data Systems, Inc. ST: Minnesota IN: CPR SU: ERN

DB-AL -- MN002 -- 4969 10/21/93 08:28 EDT
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Date:Oct 21, 1993
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