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DATA GENERAL REPORTS FOURTH QUARTER, FISCAL 1993 RESULTS

 WESTBORO, Mass., Oct. 26 /PRNewswire/ -- Data General Corporation (NYSE: DGN) today reported a net loss for the fourth quarter of fiscal 1993, which ended Sept. 25, of $37.2 million, or $1.06 per share. The loss includes a restructuring charge of $25 million. During the fourth quarter last year, the company reported net income of $.5 million, or $.01 per share.
 The company reported revenues of $278.4 million for the fourth quarter, a $26 million increase over its third quarter. During the fourth quarter of 1992 the company reported revenues of $288.2 million. Excluding the negative effects of foreign exchange, revenues for the fourth quarter would have been 4 percent higher than the level reported in last year's fourth quarter.
 Commenting on the results, President and Chief Executive Officer Ronald L. Skates said, "While we are encouraged by the growth of our AViiON product line, it has not yet been sufficient to offset the continuing revenue decline from our traditional computer line, the ECLIPSE MV family."
 "Wherever possible, we are continuing to adjust our cost structure to bring it more in line with revenues and margins. The major portion of the restructuring charge in the fourth quarter relates to a worldwide workforce realignment," said Skates.
 "Our principle focus is on revenue growth, particularly in the open systems area where we are having notable success. Accordingly, we are continuing to invest in the programs, people and skills that are required to further capitalize on the excellent position we have established in this market," said Skates.
 "The performance of our AViiON open systems computer line, which again posted strong revenue growth this past quarter, was most encouraging. Our new family of high-end and mid-range AViiON servers is being well received in the marketplace."
 According to a recent International Data Corporation report, Data General is the U.S. market share leader in medium-scale UNIX-based systems. In the same report, IDC noted that in 1992, Data General was the fastest growing UNIX-based systems vendor worldwide.
 AViiON has become Data General's leading revenue producer with revee?s for AViiON hardware and systems software during fiscal 1993, the fourth full year of shipments, of approximately $400 million, an increase of nearly 30 percent over last year. The company noted that a customer base of more than 20,000 AViiON installations, with a total value of more than $1 billion, has been established since 1989.
 Data General further strengthened the AViiON family yesterday with the introduction of a new low-end AViiON server, the AV 5500. The company also said it would begin shipping 6- and 8-processor versions of its high-end AV 9500 this quarter.
 During the quarter, the company's CLARiiON Business Unit announced a strategic, long-term OEM agreement with Storage Technology Corporation. The value to Data General of this agreement should be in excess of $100 million over the next three years.
 The company also broadened the CLARiiON product line, introducing CLARiiON storage systems designed for PC networks using NetWare.
 "Today, with the combination of our new AViiON servers, our CLARiiON open storage devices, the high availability features of our DG/UX operating system, our service capability and software partnerships, Data General has the industry's most complete open enterprise computing solution," said Skates.
 Skates added, "Data General's financial position remains strong with cash and marketable securities of $192 million at the end of the quarter."
 The company generated $19 million during the quarter through the sale of non-operating assets. The sale of these assets did not have a significant impact on the results of operations.
 For the 1993 fiscal year, Data General reported a net loss of $60.5 million, or $1.73 per share, including the restructuring charge of $25 million. In fiscal 1992, the company reported a net loss of $62.5 million, or $1.91 per share. The 1992 loss included a restructuring charge of $48 million resulting from costs associated with a workforce reduction announced in April of 1992.
 The company reported revenues for the 1993 fiscal year of $1.08 billion, compared with $1.12 billion for the previous year.
 "Looking forward, we do not anticipate improved worldwide economic conditions for the foreseeable future and there is no evidence that competitive pressures will abate. We are confident, however, that we have the products, the financial resources and the strategy for longer- term success," Skates concluded.
 DATA GENERAL CORPORATION
 Condensed Consolidated Statements of Operations
 (In millions except per share amounts)
 Quarter Ended Year Ended
 Sept. 25, Sept. 26, Sept. 25, Sept. 26,
 1993 1992 1993 1992
 Revenues:
 Product $178.1 $176.5 $673.0 $677.8
 Service 100.3 111.7 404.9 438.1
 Total revenues 278.4 288.2 1,077.9 1,115.9
 Costs and expenses:
 Cost of product revenues 112.5 106.0 415.1 395.8
 Cost of service revenues 61.8 63.9 239.6 259.2
 Research and development 24.2 27.8 100.2 111.3
 Selling, general, and
 administrative 89.4 87.8 346.8 357.5
 Restructuring charge 25.0 --- 25.0 48.0
 Total costs and expenses 312.9 285.5 1,126.7 1,171.8
 Income (loss) from
 operation (34.5) 2.7 (48.8) (55.9)
 Interest income 1.7 2.3 8.1 11.0
 Interest expense 3.4 3.5 14.4 14.5
 Income (loss) before
 income taxes (36.2) 1.5 (55.1) (59.4)
 Income tax provision 1.0 1.0 5.4 3.1
 Net income (loss) $(37.2) $0.5 $(60.5) $(62.5)
 Primary and fully diluted
 net income (loss)
 per share $(1.06) $0.01 $(1.73) $(1.91)
 Weighted average shares
 outstanding 35.0 34.4 34.9 32.8
 Condensed Consolidated Balance Sheets
 (In millions)
 Sept. 25 Sept. 26,
 1993 1992
 Assets:
 Current assets:
 Cash and temporary cash investments $119.6 $139.5
 Marketable securities 72.4 76.9
 Receivables, net 285.5 298.5
 Inventories 101.8 121.8
 Other current assets 45.6 47.7
 Total current assets 624.9 684.4
 Property, plant, and equipment, net 177.6 196.3
 Other assets 63.8 59.8
 Total $866.3 $940.5
 Liabilities and stockholders' equity:
 Current liabilities:
 Notes payable $2.3 $3.9
 Accounts payable 85.6 85.1
 Other current liabilities 242.9 239.2
 Total current liabilities 330.8 328.2
 Long-term debt 158.4 162.3
 Stockholders' equity:
 Common stock and additional paid-in
 capital 422.6 407.7
 Retained earnings (deficit) (29.2) 31.3
 Cumulative translation adjustment (16.3) 11.0
 Total stockholders' equity 377.1 450.0
 Total $866.3 $940.5
 -0- 10/26/93
 /CONTACT: Jim Dunlap of Data General, 508-870-8162/
 (DGN)


CO: Data General Corporation ST: Massachusetts IN: CPR SU: ERN

DD -- NE003 -- 6694 10/26/93 08:03 EDT
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