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CSPI POSTS RECORD YEAR FOR SALES AND PROFIT

 BILLERICA, Mass., Sept. 30 /PRNewswire/ -- In FY93, CSPI (NASDAQ: CSPI) sales increased by 12.5 percent to $18 million (a record for the company), while operating income surged by 64 percent and EPS reached an all time high of 70 cents.
 Sales of SuperCards 2 & 3 into the U.S. Navy's sonar/radar programs were especially strong, with the units being supplied as COTS (commercial off the shelf) product. Scanalytics sales improved 30 percent with the increase attributable to the impact of a full year of CELLscan sales.
 Component cost reductions helped maintain gross margin levels, despite continuing pricing pressure, and total operating expenses as a percentage of sales fell again due to advantages of further economies of scale. Sales and Marketing expenses increased as CSPI strengthened US West Coast sales operation and placed greater emphasis on marketing and promotion. While operating profit improved to a pre-tax 13.5 percent, investment income declined, as expected, due to lower interest rates.
 Accounts receivable increased due to the timing of sales in the final months of the year and while inventory increased slightly as a result of parts build-up for CSPI's new SuperCard-4/4KL, an inventory turn close to five remains very competitive for CSPI's mix of business.
 President, CEO, David Botten, commented, "What better way to celebrate the commencement of our 25th year of operations than by being able to report another record year for sales and profit. CSPI has been profitable in every year since going public in 1982, with compounded annual growth since 1988 of 13 percent in sales and 45 percent in EPS. In the past ten years we have made the difficult transition from box to board level products and reduced our sales dependency from just a few customers to a broad population of OEM and end-user customers."
 CSPI was founded in 1968 with specific strengths in digital signal processing and computer technology. Today, CSPI is recognized as a leading manufacturer of vector processors, which enhance a computer's ability to perform high-speed arithmetic. Markets served include science and engineering applications in signal processing, sonar/radar/ASW, image processing, seismic research, medical imaging, electronic publishing and others. In addition to its vector processor products, CSPI recently formed a new division, Scanalytics, for the development and marketing of turnkey bio-imaging systems. CSPI is a public company with stock traded OTC via NASDAQ.
 CSP INC. AND SUBSIDIARIES
 Condensed Statements of Operations
 (audited)
 Years Ended August 27, 1993, and August 28, 1992
 (Dollars in thousands, except for per share data)
 1993 1992
 Sales $18,015 $16,035
 Costs and expenses:
 Cost of sales 6,075 5,752
 Engineering and development 3,226 3,383
 Marketing and sales 4,209 3,582
 General and administrative 2,034 1,814
 Total costs and expenses 15,544 14,531
 Operating income 2,471 1,504
 Investment income, net 426 719
 Income before income taxes 2,897 2,223
 Net income $1,957 $1,678
 Primary earnings per share 70 cents 61 cents
 Weighted average
 shares outstanding 2,789,373 2,753,363
 -0- 9/30/93
 /CONTACT: Gary Levine, vice president of finance of CSPI, 508-663-7598/
 (CSPI)


CO: CSP, Inc. ST: Massachusetts IN: CPR SU: ERN

JL-CM -- NE007 -- 7252 09/30/93 11:52 EDT
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Publication:PR Newswire
Date:Sep 30, 1993
Words:541
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