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EAI HAS LOSS ON LOWER SALES; ORDERS AND BACKLOG INCREASE

 WEST LONG BRANCH, N.J., March 31 /PRNewswire/ -- Electronic Associates, Inc. (NYSE: EA) reported net losses of $1.912 million in the fourth quarter and $2.538 million for the year ended Dec. 31, 1992. Losses a year earlier were $3.647 million in the fourth quarter and $3.696 million for the year.
 Sales in the fourth quarter of 1992 were $10.567 million compared with $11.806 million for the same period a year earlier. Annual sales amounted to $37.3 million in 1992 versus $42.207 million in 1991.
 Orders increased 21 percent to $46.327 million in 1992 from $38.16 million in 1991. Backlog climbed 40 percent to $33.061 million at Dec. 31, 1992 from $23.677 million a year earlier.
 EAI president Richard G. Rogers said, "Based on financial results, 1992 was not a success. Based on addressing the basic problems of the company and building for the future, a major portion of what was done was accomplished.
 "In 1992, the Contract Manufacturing programs that we planned took longer to implement than anticipated. This included bringing new technology into full production, assimilating the acquisition of another company with plants in Arizona and Mexico, taking on major new contracts, and adding major new customers. Customer deferral of shipments and delays in the receipt of orders also negatively impacted Contract Manufacturing sales volume and operating results.
 "Most of the disruption associated with these major changes in Contract Manufacturing is behind us. We enter 1993 stronger than we entered 1992. Measured by backlog, product line, technology, management team, customer diversity or overhead costs, we are a stronger company than we were. In addition, the company recently obtained an extension of its credit facility from its principal lender. This is not to say that we anticipate anything but another challenging year as we further develop our Contract Manufacturing business. The company will seek to improve its operating results and continue to pursue sources of long- term financing as it competes in a highly competitive and fast-growing industry."
 EAI is currently engaged in three related business lines, serving users and producers of electronic products and systems. In Contract Manufacturing, EAI provides manufacturing services for products designed and marketed by customers. In Field Service, the company offers independent maintenance of electronic equipment, with technicians across the United States and Japan. In Product Engineering, EAI provides simulation computer products plus design and engineering services to private industry and government agencies. The company's common stock has been traded on the New York Stock Exchange since 1962.
 ELECTRONIC ASSOCIATES, INC.
 Condensed Consolidated Statement of Operations
 (In thousands, except per share data)
 Periods ended Dec. 31 Fourth Quarter Year
 1992 1991 1992 1991
 Sales $10,567 $11,806 $37,300 $42,207
 Cost of sales 9,360 9,059 30,789 33,068
 Selling, general and
 administrative
 expenses 2,386 2,460 8,490 8,684
 Sub-total 11,746 11,519 39,279 41,752
 Income (loss) from
 operations before
 nonrecurring items (1,179) 287 (1,979) 455
 Nonrecurring items 285 4,635 285 4,746
 Income (loss) from
 operations (1,464) (4,348) (2,264) (4,291)
 Other (income)
 expense-net 125 70 274 201
 Loss before provision
 (benefit) for taxes (1,589) (4,418) (2,538) (4,492)
 Income tax provision
 (benefit) 323 (771) -- (796)
 Net loss $(1,912) $(3,647) $(2,538) $(3,696)
 Loss per common
 share $(.73) $(1.41) $(.97) $(1.43)
 Average shares
 outstanding 2,646 2,585 2,621 2,587
 ELECTRONIC ASSOCIATES, INC.
 Condensed Consolidated Balance Sheet
 (In thousands)
 12/31/92 12/31/91
 Assets:
 Current assets $15,810 $14,644
 Fixed assets-net 4,502 2,540
 Other assets 959 187
 Total assets 21,271 17,371
 Liabilities and Shareholder's
 Equity:
 Current liabilities $13,029 $7,585
 Noncurrent liabilities 5,466 4,649
 Shareholders' equity 2,776 5,137
 Total 21,271 17,371
 Shares outstanding 2,646 2,588
 -0- 3/31/93
 /CONTACT: Paul Finkel for Electronic Associates, Inc., 201-740-0090/
 (EA)


CO: Electronic Associates, Inc. ST: New Jersey IN: CPR SU: ERN

AH-TM -- NY067 -- 1703 03/31/93 17:05 EST
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Date:Mar 31, 1993
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