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DATA GENERAL REPORTS NET INCOME OF $4.0 MILLION FOR 1992 FIRST QUARTER

DATA GENERAL REPORTS NET INCOME OF $4.0 MILLION FOR 1992 FIRST QUARTER
 WESTBORO, Mass., Jan. 23 /PRNewswire/ -- Data General Corporation (NYSE: DGN) today reported net income of $4.0 million, or 12 cents per share, for its first quarter of fiscal 1992, which ended Dec. 28, 1991. For its first quarter last year the company reported net income of $12.4 million, or 41 cents per share.
 Revenues for the first quarter were $294.8 million, compared with revenues of $311.7 million for the first quarter last year.
 The company said that first quarter revenues from the Japanese marketplace were $16 million lower than revenues during last year's first quarter, resulting from the sale last year of its Nippon-Data General subsidiary.
 "Revenues from our AViiON family of open systems continued to grow during the quarter," said President and Chief Executive Officer Ronald L. Skates. "The principal increase was from our AViiON servers, which represent the majority of AViiON revenues."
 Operating income for the quarter was $4.9 million, compared with operating income of $15.5 million for the first quarter last year.
 Skates said, "We have been able to maintain profitability despite continuing weakness in the worldwide economy and very competitive pricing pressures."
 "Our expectation is that industry-wide pricing pressures, which had a significant impact on the past quarter's results, will not abate for some time," said Skates.
 "While we believe our strategy is correct for the needs of the marketplace, we remain very cautious about the remainder of 1992," Skates added.
 Since the start of its fiscal 1992 year, the company has announced a series of agreements and new products, which have strengthened its position in the marketplace.
 Earlier this week, the company announced that the AViiON line will be further augmented through an agreement with Dun & Bradstreet Software. Under terms of the agreement, software products will be developed this year that will allow Dun & Bradstreet's customers to run business software on AViiON server systems in a UNIX-based client/server environment. Dun & Bradstreet is the leading supplier of business applications software to the mainframe environment.
 During the quarter, Data General extended the low-end of its AViiON server family with the introduction of the AV 4300 series of deskside systems for the office environment. The AV 4300 delivers 29 MIPS performance while the dual-processor AV 4320 offers 58 MIPS performance.
 In addition, the company unveiled an enhanced version of its UNIX operating system that has been certified as compliant with POSIX and X/Open Portability Guide 3 standards. Adherence to these standards is required by many government and multinational companies to improve applications portability.
 During the quarter, Data General also introduced a new High Availability Disk Array (HADA) subsystem for use with its AViiON family. The HADA subsystem, which is based on new RAID technology, is capable of storing up to 2.5 billion characters of information.
 The company also strengthened its ECLIPSE/MV family of systems with the announcement of a SCSI-2 disk and tape subsystem. The new subsystem is available with a wide selection of disk and tape drives. Also introduced was a disk storage subsystem for use with MV family systems that can store up to 4 billion characters of information.
 Data General's personal computer offerings were enhanced with the introduction of the DASHER II-386SX/16z. The new PC can be used as a stand-alone desktop computer or linked with ECLIPSE MV or AViiON server systems.
 DATA GENERAL CORPORATION
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (In millions except per share amounts)
 Quarter Ended
 Dec. 28 Dec. 29
 1991 1990
 Revenues:
 Product $185.5 $199.3
 Service 109.3 112.4
 Total revenues 294.8 311.7
 Costs and expenses:
 Cost of product
 revenues 99.9 104.8
 Cost of service
 revenues 66.4 65.5
 Research and
 development 27.9 25.0
 Selling, general,
 and administrative 95.7 100.9
 Total costs and
 expenses 289.9 296.2
 Income from operations 4.9 15.5
 Interest income 3.2 1.4
 Interest expense 3.6 3.2
 Income before income taxes 4.5 13.7
 Income tax provision .5 1.3
 Net income $4.0 $12.4
 Primary and fully diluted net
 income per share 12 cents 41 cents
 Weighted average
 shares outstanding 34.5 30.7
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (In millions)
 Dec. 28, Sept. 29,
 1991 1991
 Assets:
 Current assets:
 Cash and temporary cash investments $154.2 $149.1
 Marketable securities 94.7 92.0
 Receivables, net 303.6 276.9
 Inventories 141.1 136.4
 Other current assets 48.1 36.1
 Total current assets 741.7 690.5
 Property, plant, and equipment, net 201.2 204.5
 Other assets 51.9 49.0
 Total $994.8 $944.0
 Liabilities and stockholders' equity:
 Current liabilities:
 Notes payable $3.3 $5.7
 Accounts payable 107.0 72.4
 Other current liabilities 214.8 206.6
 Total current liabilities 325.1 284.7
 Long-term debt 164.0 164.9
 Stockholders' equity:
 Common stock and additional
 paid-in capital 394.8 391.8
 Retained earnings 97.8 93.8
 Cumulative translation adjustment 13.1 8.8
 Total stockholders' equity 505.7 494.0
 Total $994.8 $944.0
 -0- 1/23/92
 /CONTACT: Jim Dunlap of Data General, 508-870-8162/
 (DGN) CO: Data General Corporation ST: Massachusetts IN: CPR SU: ERN


DD-SD -- NE002 -- 2618 01/23/92 08:45 EST
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