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DATA GENERAL REPORTS FOURTH QUARTER, FISCAL 1992 RESULTS; REVENUES INCREASE 11 PERCENT OVER THIRD QUARTER

 DATA GENERAL REPORTS FOURTH QUARTER, FISCAL 1992 RESULTS;
 REVENUES INCREASE 11 PERCENT OVER THIRD QUARTER
 WESTBORO, Mass., Oct. 29 /PRNewswire/ -- Data General Corporation (NYSE: DGN) today reported revenues of $288.2 million for its fourth quarter of fiscal 1992, which ended Sept. 26, an 11 percent increase over its third quarter. During the fourth quarter of 1991 the company reported revenues of $295.6 million.
 Operating income for the fourth quarter was $2.7 million, compared with an operating loss of $9.9 million for the third quarter and operating income of $19.6 million for the fourth quarter of 1991.
 Net income for the fourth quarter was $.5 million, or 1 cent per share. Data General had reported a net loss of $11.7 million, or 35 cents per share, for its third quarter of fiscal 1992. During its fourth quarter last year, the company reported net income of $18.4 million, or 50 cents per share on a fully diluted basis.
 Commenting on the quarter, President and Chief Executive Officer Ronald L. Skates said, "We are encouraged that we achieved increased revenues and operating income during the fourth quarter compared to the prior two quarters, particularly in light of the continuing weak worldwide economy and industry-wide pricing pressures."
 Skates added, "The continued strong showing of our AViiON open systems computers also was encouraging. AViiON revenues during fiscal 1992, the third full year of shipments, were in excess of $300 million.
 "In addition, revenues for our ECLIPSE product line were higher than in the third quarter, as we began shipping the new high-end MV/60000 and mid-range MV/35000 systems.
 "Our challenge is to further increase revenues while improving our operating margins," Skates said.
 Towards that end, the company strengthened the AViiON line during the quarter with the introduction of the AV6280 and AV 8000-8 systems. The new high-end systems, which are capable of processing 235 million instructions per second (MIPS), twice the performance of previous high-end AViiON servers, will begin shipping later this calendar year.
 The company also announced the CLARiiON family of open storage systems. Based on leading-edge RAID disk array storage technology, the CLARiiON systems also will start to ship later this calendar year to businesses that use server computer systems from IBM (RS/6000) and Sun Microsystems (SPARCserver systems) and in early 1993 to businesses that use UNIX-based servers from Unisys, Hewlett-Packard and ICL.
 During the quarter, the company also signed an agreement with NeXT Computer, that will result in Data General reselling NeXT workstations with AViiON servers. In addition, the companies agreed to cooperate in the further development of advanced client/server solutions.
 "Our open systems offerings have been strengthened by the new AViiON and CLARiiON systems," said Skates. "They are ideal for businesses that have large database requirements or want to downsize or offload their mainframe-based software applications."
 Skates added, "Data General's financial position continues to be strong with cash and marketable securities of $216.4 million at the end of the year.
 "While we remain very cautious for the short term in light of worldwide economic conditions, which continue to negatively impact the industry, we believe we are well positioned to be successful," concluded Skates.
 The company reported revenues for the 1992 fiscal year of $1.12 billion, compared with $1.23 billion for the previous year.
 The company said that revenues during 1992 were negatively impacted by reduced sales in Japan. The company sold its Nippon-Data General subsidiary in 1991. Revenues in 1992 from the Japanese marketplace were $53 million lower than revenues from that market last fiscal year.
 For the year, Data General reported a net loss of $62.5 million, or $1.91 per share. The loss includes a restructuring charge of $48 million resulting from costs associated with a workforce reduction announced in April. In fiscal 1991, the company reported net income of $85.6 million, or $2.45 per share on a fully diluted basis. The 1991 net income included a one-time gain of $13 million from the sale of its Japanese subsidiary, Nippon-Data General.
 DATA GENERAL CORPORATION
 Condensed Consolidated Statements of Operations
 (In millions except per share amounts)
 Quarter Ended Year Ended
 Sept 26, Sept. 28, Sept. 26, Sept. 28,
 1992 1991 1992 1991
 Revenues:
 Product $176.5 $191.2 $677.8 $796.5
 Service 111.7 104.4 438.1 432.4
 Total revenues 288.2 295.6 1,115.9 1,228.9
 Costs and expenses:
 Cost of product revenues 106.0 99.2 395.8 407.9
 Cost of service revenues 63.9 60.8 259.2 251.6
 Research and development 27.8 25.8 111.3 102.0
 Selling, general, and
 administrative 87.8 90.2 357.5 384.4
 Restructuring charge --- --- 48.0 ---
 Total costs and expenses 285.5 276.0 1,171.8 1,145.9
 Income (loss) from
 operations 2.7 19.6 (55.9) 83.0
 Gain on sale of subsidiary --- --- --- 13.0
 Interest income 2.3 3.6 11.0 8.1
 Interest expense 3.5 3.7 14.5 12.6
 Income (loss) before
 income taxes 1.5 19.5 (59.4) 91.5
 Income tax provision 1.0 1.1 3.1 5.9
 Net income (loss) $0.5 $18.4 $(62.5) $85.6
 Primary earnings per share:
 net income(loss)per share $0.01 $.53 $(1.91) $2.62
 Weighted average shares
 outstanding 34.4 34.4 32.8 32.7
 Fully diluted earnings per
 share:
 Net income (loss) per share $0.01 $.50 $(1.91) $2.45
 Weighted average shares
 outstanding 34.4 41.1 32.8 36.1
 Condensed Consolidated Balance Sheets
 (In millions)
 Sept. 26, Sept. 28,
 1992 1991
 Assets:
 Current assets:
 Cash and temporary cash investments $139.5 $149.1
 Marketable securities 76.9 92.0
 Receivables, net 298.5 276.9
 Inventories 121.8 136.4
 Other current assets 47.7 36.1
 Total current assets 684.4 690.5
 Property, plant, and equipment, net 196.3 204.5
 Other assets 59.8 49.0
 Total 940.5 944.0
 Liabilities and stockholders' equity:
 Current liabilities:
 Notes payable $3.9 $5.7
 Accounts payable 85.1 72.4
 Other current liabilities 239.2 206.6
 Total current liabilities 328.2 284.7
 Long-term debt 162.3 164.9
 Stockholders' equity:
 Common stock and additional paid-in
 capital 407.7 391.8
 Retained earnings 31.3 93.8
 Cumulative translation adjustment 11.0 8.8
 Total stockholders' equity 450.0 494.4
 Total $940.5 $944.0
 -0- 10/29/92
 /CONTACT: Jim Dunlap of Data General, 508-870-8162/
 (DGN) CO: Data General Corporation ST: Massachusetts IN: CPR SU: ERN


DD -- NE001 -- 6390 10/29/92 08:34 EST
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