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DATAPOINT REPORTS YEAR-END RESULTS

 PARIS, Sept. 15 /PRNewswire/ -- Datapoint Corporation (NYSE: DPT) today reported a net loss of $11.3 million on revenue of $208.3 million for the company's fiscal year ended July 31, 1993. This compares with a net loss of $8.8 million on revenue of $255.2 million for the prior year. The loss per common share, after deducting preferred stock dividends paid or in arrears, was $0.93 for fiscal 1993 as compared with a loss per common share of $1.47 for the prior year.
 During the fourth quarter of fiscal 1993 the company recorded a net loss of $8.4 million on revenue of $44.9 million compared with a net loss of $10.1 million on revenue of $70.7 million for the same period of the prior year.
 Datapoint's losses in fiscal 1993 were caused, primarily, by the steep decline in revenue. This revenue decline resulted from poor European economic conditions and a strong U.S. dollar.
 Operating performance was also negatively impacted by the high cost of severance charges from the restructuring plan accomplished during 1993 which was implemented to improve the company's internal operations and to re-position its sales and marketing teams to benefit from the introduction of a broad range of new products. The company recorded $6.2 million in restructuring charges for fiscal 1993, of which $2.4 million was charged in the fourth quarter. Restructuring charges incurred during fiscal 1992 were negligible.
 Consequently, the company recorded an operating loss of $1.3 million during 1993 compared with $6.7 million of operating income for 1992.
 Non-operating results for fiscal 1993 consisted primarily of interest expense of $9.3 million, whereas in fiscal 1992 non-operating results consisted primarily of $15.3 million in legal settlements and $8.4 million in interest expense partially offset by favorable impacts of foreign currency transaction gains and the curtailment of the United Kingdom defined benefit plan which resulted in a gain of $3.0 million.
 Cash and short-term investments, including restricted cash, ended the year at $27.7 million, increasing $3.0 million during the year on the strength of successful receivables collections and continued emphasis on inventory management.
 Asher B. Edelman, chairman, commented, "Although the drop in revenue in 1993 was substantial, the company's internal operations were much improved. We made a substantial investment in new products and in the re-shaping of both U.S. and foreign operations in preparation for entering important new markets. With European economic conditions improving and Datapoint able to deliver its expanded product offering, we look to fiscal 1994 with great enthusiasm."
 Datapoint, a leader in providing computer-based networking, telephony, and MINX(TM) video communication technologies, markets its products and services in 49 countries worldwide.
 NOTE: Datapoint and the 'D' logo are registered trademarks and MINX is a trademark of Datapoint Corporation.
 DATAPOINT CORPORATION AND SUBSIDIARIES
 Consolidated Statements Of Operations
 (In thousands, except share data)
 Fiscal years ended 1993 1992
 Revenue:
 Sales $ 100,220 $ 139,225
 Service and other 108,124 116,018
 Total revenue 208,344 255,243
 Operating costs and expenses:
 Cost of sales 48,359 76,287
 Cost of service and other 73,387 77,079
 Research and development 7,754 9,330
 Selling, general and administrative 73,859 85,892
 Restructuring costs 6,243 --
 Total operating costs and expenses 209,602 248,588
 Operating income (loss) (1,258) 6,655
 Non-operating income (expense):
 Interest expense (9,349) (8,432)
 Other, net (291) (7,324)
 Loss before income taxes and
 extraordinary credit (10,898) (9,101)
 Income taxes 961 1,308
 Loss before extraordinary credit (11,859) (10,409)
 Extraordinary credit:
 Utilization of tax loss carryforward 599 1,653
 Net loss $ (11,260) $ (8,756)
 Net loss, less preferred stock
 dividend $ (13,044) $ (16,357)
 Net loss per common share:
 Before extraordinary credit $ (.97) $ (1.62)
 Utilization of tax loss carryforward .04 .15
 Net loss $ (.93) $ (1.47)
 Average common shares 14,081,964 11,093,431
 DATAPOINT CORPORATION AND SUBSIDIARIES
 Summary Operating Statements
 (In thousands, except per share data)
 Three Months Ended Twelve Months Ended
 7/31/93 8/1/92 7/31/93 8/1/92
 Revenue:
 Sales $ 20,982 $ 39,685 $100,220 $139,225
 Service and other 23,939 31,043 108,124 116,018
 Total revenue 44,921 70,728 208,344 255,243
 Operating income (loss) (6,264) 2,037 (1,258) 6,655
 Non-operating income
 (expense), net (2,096) (12,111) (9,640) (15,756)
 Loss before income taxes
 and extraordinary item (8,360) (10,074) (10,898) (9,101)
 Income tax expense 44 (11) 961 1,308
 Loss before extraordinary
 item (8,404) (10,063) (11,859) (10,409)
 Extraordinary item:
 Utilization of tax loss
 carryforward (3) (30) 599 1,653
 Net loss $ (8,407) $(10,093) $(11,260) $ (8,756)
 Net loss per share
 applicable to common
 stock (A) $(.62) $(.76) $(.93) $(1.47)
 Average common shares
 outstanding 14,332,612 13,952,705 14,081,964 11,093,431
 (A) Fourth quarter results include $446 of dividends paid or accrued in the fourth quarter of fiscal 1993 and fiscal 1992 on the $1.00 preferred stock. Full year results include $1,784 of dividends paid in fiscal 1993 and $446 of dividends paid or accrued in fiscal 1992 on the $1.00 preferred stock and $7,155 of dividends in arrears in fiscal 1992 on the $4.94 preferred stock.
 DATAPOINT CORPORATION AND SUBSIDIARIES
 Summary Balance Sheets
 (In thousands)
 7/31/93 8/1/92
 Current assets $ 94,169 $121,991
 Fixed assets, net 27,950 34,533
 Excess of cost of investment over
 net assets acquired, net 58,216 67,855
 Other assets, net 21,940 24,434
 Total assets $202,275 $248,813
 Current liabilities $ 74,759 $ 90,581
 Long-term debt and other 80,495 83,397
 Stockholders' equity 47,021 74,835
 Total liabilities and stockholders'
 equity $202,275 $248,813
 -0- 9/15/93
 /CONTACT: Patricia Coble of Datapoint Corporation, 210-593-7910/
 (DPT)


CO: Datapoint Corporation ST: IN: CPR SU: ERN

SM -- NY076 -- 2348 09/15/93 15:26 EDT
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Date:Sep 15, 1993
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