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DATA GENERAL REPORTS SECOND QUARTER RESULTS

 DATA GENERAL REPORTS SECOND QUARTER RESULTS
 WESTBORO, Mass., April 23 /PRNewswire/ -- Data General Corporation


(NYSE: DGN) today reported a net loss of $55.3 million, or $1.69 per share, including a restructuring charge of $48.0 million, for its second quarter of fiscal 1992, which ended March 28, 1992. For the second quarter last year, the company reported net income of $19.2 million, or 60 cents per share.
 The company had announced earlier this month that it would record the restructuring charge as a result of costs associated with a workforce reduction. It also had indicated at that time that it would report lower revenues than projected by industry analysts and that it might report an operating loss for the quarter, prior to the charge.
 Revenues for the second quarter were $273.8 million, compared with revenues of $320.4 million for the comparable quarter last year.
 "While revenues for our AViiON family of open systems computers increased again during the second quarter, we are not satisfied with overall revenues," said Data General President and Chief Executive Officer Ronald L. Skates. According to the company, second quarter revenues were impacted primarily by continuing competitive pricing pressures, as well as by the weak worldwide economy. The company also said that Japanese marketplace revenues were $19.4 million lower than last year's second quarter, resulting from the sale during 1991 of the company's Nippon*Data General subsidiary.
 The operating loss for the quarter, including the restructuring charge, was $53.7 million, compared with operating income of $21.7 million for the second quarter last year.
 "Data General continues to be in a strong financial position with cash and marketable securities of $237.7 million at the end of the second quarter," Skates said.
 "We are seeing increased interest in our AViiON servers among businesses which are looking to reduce their computing expenses by running mainframe-class software on AViiON systems that are priced at a fraction of mainframe costs," said Skates. "This concept is increasingly becoming known throughout the computer industry as downsizing."
 "In addition, we believe that our ECLIPSE MV product family will be strengthened by the end of the fiscal year with the addition of the new high-end ECLIPSE MV/60000 HA, mid-range ECLIPSE MV/35000 computer systems and high availability disk storage subsystem that were announced earlier this month," said Skates.
 The new ECLIPSE MV/60000 HA offers twice the performance (108 million instructions per second) of the company's previously most powerful MV/Family system. The ECLIPSE MV/35000 offers 40 percent greater performance over previous mid-range systems.
 The new MV/High Availability Disk Array (H.A.D.A.) Mass Storage Subsystem can store up to 30 billion characters of information. The high-performance disk array supports multiple levels of the latest RAID (Redundant Array of Inexpensive Disk) technology.
 For the first six months of fiscal 1992, the company reported a net loss of $51.3 million, or $1.58 per share, including the restructuring charge. For the same period last year the company reported net income of $31.6 million, or $1.01 per share.
 Revenues for the first two quarters of 1992 totaled $568.6 million, compared with $632.1 million for the same period last year.
 The operating loss for the six-month period, including the restructuring charge was $48.8 million, compared with operating income of $37.2 million in the prior year.
 Skates said, "We continue to be very cautious about the remainder of 1992 in light of current worldwide economic conditions. We are confident, however, that for the longer-term our strategy is correct and we are positioned to be successful."
 Data General Corporation
 Condensed Consolidated Statements of Operations
 (In millions except per share amounts)
 Quarter Ended Six Months Ended
 3/28/92 3/30/91 3/28/92 3/30/91
 Revenues:
 Product $164.4 $207.8 $349.9 $407.1
 Service 109.4 112.6 218.7 225.0
 Total revenues 273.8 320.4 568.6 632.1
 Costs and expenses:
 Cost of product revenues 97.0 106.6 196.9 211.4
 Cost of service revenues 65.1 64.7 131.6 130.2
 Research and development 28.3 26.1 56.2 51.1
 Selling, general, and
 administrative 89.1 101.3 184.7 202.2
 Restructuring charge 48.0 --- 48.0 ---
 Total costs and expenses 327.5 298.7 617.4 594.9
 Income (loss) from operations (53.7) 21.7 (48.8) 37.2
 Interest income 2.8 .9 6.0 2.3
 Interest expense 3.7 2.9 7.3 6.1
 Income (loss) before
 income taxes (54.6) 19.7 (50.1) 33.4
 Income tax provision .7 .5 1.2 1.8
 Net income (loss) $(55.3) $19.2 $(51.3) $31.6
 Primary and fully diluted net
 income (loss) per share $(1.69) $.60 $(1.58) $1.01
 Weighted average shares
 outstanding 32.7 31.8 32.4 31.2
 Condensed Consolidated Balance Sheets
 (In millions)
 March 28, Sept. 28,
 1992 1991
 Assets:
 Current assets:
 Cash and temporary cash
 investments $129.2 $149.1
 Marketable securities 108.5 92.0
 Receivables, net 281.9 276.9
 Inventories 127.1 136.4
 Other current assets 45.9 36.1
 Total current assets 692.6 690.5
 Property, plant, and equipment, net 198.9 204.5
 Other assets 53.3 49.0
 Total $944.8 $944.0
 Liabilities and stockholders' equity:
 Current Liabilities:
 Notes payable $3.6 $5.7
 Accounts payable 76.1 72.4
 Other current liabilities 252.5 206.6
 Total current liabilities 332.2 284.7
 Long-term debt 163.7 164.9
 Stockholders' equity:
 Common stock and additional
 paid-in capital 401.4 391.8
 Retained earnings 42.5 93.8
 Cumulative translation adjustment 5.0 8.8
 Total stockholders' equity 448.9 494.4
 Total $944.8 $944.0
 -0- 4/23/92 R
 /CONTACT: Jim Dunlap of Data General Corporation, 508-870-8162/
 (DGN) CO: Data General Corporation ST: Massachusetts IN: CPR SU: ERN


DD -- NE002 -- 1792 04/23/92 11:03 EDT
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