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DATA SWITCH POSTS THIRD-QUARTER PROFIT

 DATA SWITCH POSTS THIRD-QUARTER PROFIT
 SHELTON, Conn., Oct. 22 /PRNewswire/ -- Data Switch Corporation


(NASDAQ: DASW) today reported a profit and positive cash flow for the third quarter. Revenues were down slightly. For the period ended Sept. 30, 1992, the company earned $699,000, or $.06 per share, on revenues of $21,919,000. In third quarter last year, Data Switch had a net loss of $33,599,000, or $2.83 per share, which included a goodwill write-down of $32,996,000. Sales for that period were $22,768,000.
 For the first nine months of 1992, Data Switch had a net loss of $1,246,000, or $.10 per share, on revenues of $65,387,000. Last year, the company posted a net loss of $33,320,000, or $2.81 per share, on revenues of $73,741,000.
 Commenting on third-quarter results, Data Switch President and Chief Executive Officer J. Roger Moody said: "In spite of sluggish economies in the U.S. and abroad, overall sales levels were down only slightly. We continued to see strong data processing switch sales, which meant good gross margins for the quarter. Our good margins and ongoing expense controls enabled us to continue to experience positive cash flow of over $2.5 million for the quarter and $9 million for the nine months to date."
 "Our challenge moving forward is to rebuild revenue levels through new product sales and expanded market penetration of existing products," Mr. Moody continued. "We are making progress in both areas. First, we have several new and enhanced products that we expect to release in the next six months. These will help the company grow in mid-1993. Second, we see significant growth potential in key international arenas where we previously had little presence. We believe that when world economies rebound, we will be well-positioned to take advantage of these emerging market opportunities. In the meantime, given our current expense levels and product mix trends, we expect to record our third consecutive profit in the fourth quarter."
 DATA SWITCH CORPORATION
 Summary of Operations
 (000's except per share data)
 Period ended Three months Nine months
 Sept. 30 1992 1991 1992 1991
 Revenues $21,919 $22,768 $65,387 $73,741
 Cost of goods sold 10,802 11,650 33,882 36,989
 Gross profit 11,117 11,118 31,505 36,752
 Operating expenses 9,616 10,949 30,302 33,359
 Goodwill amortization 42 33,026 128 34,407
 Other expenses, net 590 887 2,336 2,966
 Pre-tax income (loss) 869 (33,744) (1,261) (33,980)
 (Provision for) benefit
 from taxes (170) 145 15 235
 Income (loss) before
 extraordinary gain 699 (33,599) (1,246) (33,745)
 Extraordinary gain -- -- -- 425
 Net income (loss) 699 (33,599) (1,246) (33,320)
 EPS before extraordinary gain 0.06 (2.83) (0.10) (2.84)
 EPS 0.06 (2.83) (0.10) (2.81)
 Average shares outstanding 12,004 11,901 11,960 11,877
 BALANCE SHEET (In thousands)
 9/30/92 12/30/91 9/30/91
 Cash $ 628 $ 753 $ 680
 Receivables 24,204 32,840 28,892
 Inventories 17,053 20,182 22,930
 Other current assets 928 766 1,025
 Total current assets 42,813 54,541 53,527
 Property and equipment 6,069 6,685 6,964
 Goodwill 2,683 2,812 3,883
 Other 6,016 4,647 4,481
 Total assets 57,581 68,685 68,855
 Short-term debt 3,140 1,396 160
 Other current liabilities 11,735 12,389 11,807
 Total current liabilities 14,875 13,785 11,967
 Long-term debt 21,136 32,176 35,335
 Shareholders' equity 21,570 22,724 21,553
 Total liabilities and
 shareholders' equity 57,581 68,685 68,855
 -0- 10/22/92
 /CONTACT: Linda L. Bachmann, director-corporate communications of Data Switch, 203-926-1801/
 (DASW) CO: Data Switch Corporation ST: Connecticut IN: TLS SU: ERN


SH-OS -- NY076 -- 3567 10/22/92 12:04 EDT
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Publication:PR Newswire
Date:Oct 22, 1992
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