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DATAPOINT REPORTS THIRD QUARTER EARNINGS

 DATAPOINT REPORTS THIRD QUARTER EARNINGS
 PARIS, June 8 /PRNewswire/ -- Datapoint Corporation (NYSE: DPT)


today reported net income of $0.8 million on revenue of $64.2 million for the company's third quarter ended April 25, 1992. This compares with net income of $1.0 million on revenue of $69.7 million for the third quarter of the prior year. The decline in revenue was due to unfavorable changes in foreign currency translation rates as compared to the prior year, and to intense competitive pressures.
 The company had operating income of $2.4 million during the third quarter of fiscal year 1992 compared with operating income of $3.6 million a year ago. The decline is due primarily to a decrease in gross profit resulting from the decline in revenue.
 Non-operating results for the third quarter of fiscal year 1992 improved over the same quarter a year ago due primarily to a substantial reduction in interest expense and the improved performance of the company's investments.
 Debt repurchases resulted in an extraordinary gain of $0.5 million in the third quarter of 1991. No such repurchases occurred during the third quarter of fiscal year 1992.
 The third quarter income tax expense includes a credit of $0.6 million due to a favorable settlement with the Internal Revenue Service.
 The first nine months of fiscal year 1992 resulted in net income of $1.3 million on revenue of $184.5 million compared with net income of $5.1 million on revenue of $197.6 million for the first nine months of fiscal 1991.
 Subsequent to the quarter end, the company executed an exchange offer for its outstanding $4.94 Exchangeable Preferred Stock in exchange for new $1.00 Preferred Stock, $20.00 liquidation preference per share and two shares of common stock. The exchange eliminates approximately $23.9 million in dividends in arrears on the old Preferred Stock, and reduces future quarterly Preferred dividends from $2.4 million to $0.5 million. The exchange was not recorded in the quarter ending April 25, 1992.
 Datapoint, a leader in networking Information Technology -- telephony services, videoconferencing, personal computing and information processing -- markets a variety of products and services in 42 countries worldwide as part of its Open Systems Networking (OSN) strategy.
 DATAPOINT CORPORATION
 SUMMARY OPERATING STATEMENTS
 (in thousands, except per share data)
 Three Months Ended
 April 25, April 27,
 1992 1991
 Revenue:
 Sales $ 35,454 $ 41,100
 Service and other 28,787 28,646
 Total revenue $ 64,241 $ 69,746
 Operating income $ 2,366 $ 3,559
 Non-operating income
 (expense), net (2,144) (2,703)
 Income before income
 taxes and extraordinary
 items 222 856
 Income tax expense 250 785
 Income (loss) before
 extraordinary items (28) 71
 Extraordinary items:
 Debt extinguishment -- 508
 Utilization of tax
 loss carryforward 822 435
 Net income $ 794 $ 1,014
 Net loss per share
 applicable to
 common stock (A) $ (.16) $ (.14)
 Average common shares 10,156,740 10,120,858
 Pro Forma effect of
 Preferred Stock
 Exchange on Earnings
 per share data: (B)
 Earnings per share
 applicable to
 common stock $ .02 $ .04
 Primary common shares 14,019,176 13,983,294
 (A) Includes $2,385 of dividends in arrears for the third quarter of 1992 and 1991.
 (B) As if the Exchange had taken effect at the beginning of the periods shown.
 Nine Months Ended
 April 25, April 27,
 1992 1991
 Revenue:
 Sales $ 99,540 $108,810
 Service and other 84,975 88,787
 Total revenue $184,515 $197,597
 Operating income $ 4,618 $ 8,205
 Non-operating income
 (expense), net (3,645) (6,194)
 Income before income
 taxes and extraordinary
 items 973 2,011
 Income tax expense 1,319 3,517
 Loss before extraordinary
 items (346) (1,506)
 Extraordinary items:
 Debt extinguishment -- 5,217
 Utilization of tax
 loss carryforward 1,683 1,367
 Net income $ 1,337 $ 5,078
 Net loss per share
 applicable to
 common stock (A) $ (.57) $ (.21)
 Average common shares 10,140,340 10,118,801
 Pro Forma effect of
 Preferred Stock
 Exchange on Earnings
 per share data: (B)
 Earnings per share
 applicable to
 common stock $ -- $ .26
 Primary common shares 14,002,776 13,981,237
 (A) Includes $7,155 of dividends in arrears for each of fiscal years 1992 and 1991.
 (B) As if the Exchange had taken effect at the beginning of the periods shown.
 SUMMARY BALANCE SHEETS
 (In thousands)
 April 25, July 27,
 1992 1991
 Current assets $114,361 $122,025
 Fixed assets, net 31,301 29,572
 Excess of costs of
 investment over net
 assets acquired, net 64,080 62,493
 Other assets, net 20,949 21,400
 $230,691 $235,490
 Current liabilities $ 75,679 $ 87,591
 Long-term debt and other 75,595 76,473
 Stockholders' equity 79,417 71,426
 $230,691 $235,490
 -0- 6/8/92
 /CONTACT: Patricia Coble of Datapoint, 512-593-7910/
 (DPT) CO: Datapoint Corporation ST: IN: TLS SU: ERN


SH -- NY021 -- 7800 06/08/92 10:09 EDT
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