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DIGICON ANNOUNCES FINANCIAL RESULTS

DIGICON ANNOUNCES FINANCIAL RESULTS
    HOUSTON, June 15 /PRNewswire/ -- Digicon Inc. (AMEX: DGC), an international seismic data acquisition and processing services company, announced today that during the nine months ended April 30, 1992, it earned $1,856,000 or $.11 per share, on revenues of $80,233,000. Current year revenues were up 15 percent over the $69,481,000 recorded in the comparable period a year ago.  In the 1991 nine-month period, the company reported a net loss of $4 million.  During the third quarter ended April 30, 1992, the company had breakeven results, compared with a loss of $3,148,000 in the same quarter of the prior year.  Revenues during the current quarter totaled $23,863,000, an increase of approximately 4 percent over the $22,905,000 of revenues recorded in the prior year.
    Income before taxes was $2,825,000 for the nine months ended April 30, 1992 and $146,000 for the third quarter vs. losses of $2,736,000 and $2,537,000 in the comparable periods a year ago.
    The current year's provision for income taxes includes $271,000, equal to $.02 per common share which is not payable currently or in the future because of the availability of tax benefits from net operating loss carryforwards in the United States and certain foreign countries. These amounts have been provided in accordance with Staff Accounting Bulletin No.86 and, in accordance with such bulletin, such amounts have been added to its paid-in capital account.
    Digicon said that it experienced revenue growth in marine data collection and seismic data processing activities in both the nine-month and three-month periods.  For the nine months, marine revenues increased to $46,205,000, a gain of 14 percent over the prior year while data processing revenues were $27,673,000, a 20 percent increase.  In the quarter, marine revenues were up 4 percent to $13,600,000 compared with a year ago, while data processing revenues advanced to $9,433,000, a gain of 17 percent.
    The company's international activities have accounted for approximately 86 percent of revenues during the current year.
    The company said that its earnings were impacted by the drydocking of three vessels during the quarter and by certain tax items.  The downtime associated with the drydocking reduced revenues by an estimated $2 million.  The tax item relates to excess amounts withheld by a national oil company for contract payments due to the company for work completed.  The company believes such tax withholding is not contemplated in its contract and although the company has formally requested a refund of the excess withholding, full provision for these excess taxes has been made.  The effect on the quarter of providing for the tax item was a reduction in net income by an estimated $205,000 or $.01 per share and a reduction in the amount added to paid-in capital of $455,000 or $.02 per share.
    Digicon provides seismic data acquisition and processing services on a worldwide basis to the petroleum industry.  The company operates seismic survey ships, land data acquisition crews and data processing centers around the world.
                       DIGICON INC. AND SUBSIDIARIES
                  Statements Of Consolidated Income (Loss)
                                 Unaudited
                  (In thousands, except per share amounts)
      Periods ended April 30         Nine Months         Three Months
                                  1992         1991   1992          1991
    Revenues                     $80,233   $69,481   $23,863    $22,905
    Operating expenses            68,449    59,973    20,765     19,754
    Depreciation                   4,931     4,179     1,758      1,534
    Selling, general &
     administrative                3,065     2,113     1,133        429
    Reorganization costs              --     3,705        --      3,255
    Other - net                     (579)     (352)     (142)      (384)
    Income (loss) from
     operations                    4,367      (137)      349     (1,683)
    Interest expense               1,542     2,599       203        854
    Income (loss) before provision
     for income taxes              2,825    (2,736)      146     (2,537)
    Provision for income taxes       969(A)  1,264       139(A)     241
    Income (loss) before
     extraordinary items           1,856    (4,000)        7     (2,778)
    Extraordinary items               --        --        --       (370)
    Net income (loss)            $ 1,856   $(4,000)  $     7    $(3,148)
    Per share of common stock    $   .11     N/M(B)  $    (C)     N/M(B)
    Weighted average shares
     outstanding                  17,168     N/M(B)   22,431     N/M(B)
       (A) Includes $271,000, equal to $.02 per share of common stock
    during the nine month period which is not payable currently or in
    the future because of the availability of tax benefits in the United
    States and certain foreign countries.  In accordance with Staff
    Accounting Bulletin No. 86, the amount of $271,000 has been added to
    the company's paid-in capital account during the nine month period.
    For the quarter, the amount of $235,000 was deducted from amounts
    previously included in paid-in capital.
       (B) Information concerning shares and net income per share in
    1991 has been omitted because such data is not comparable with the
    current period as a result of a recapitalization of the company in
    July 1991.
       (C) Amount is less than +/- $.01.
                             DIGICON INC. AND SUBSIDIARIES
                         Condensed Consolidated Balance Sheets
                                   (In thousands)
                                    (Unaudited)
                                            April 30,        July 31,
                                              1992             1991
    ASSETS
    Current assets                        $40,945             $37,335
    Property and equipment, net            25,767              18,837
    Other assets                            7,439               4,447
    Total assets                          $74,151             $60,619
                        Liabilities and Stockholders' Equity
    Current liabilities                   $28,625             $31,118
    Long-term debt                          3,646              19,076
    Deferred income taxes                     237                 773
    Stockholders' equity                   41,643               9,652
    Total liabilities and stockholders'
      equity                              $74,151             $60,619
    -0-             06/15/92
    CONTACT:  Larry E. Lenig Jr., or Allan C. Pogach of Digicon Inc., 713-526-5611 or 1-800-DIGICON
    (DGC) CO:  DIGICON INC. ST:  TX -- NY019 -- X418  06/15/92
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Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Date:Jun 15, 1992
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