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ELECTROMEDICS REPORTS FIRST QUARTER 1993 EARNINGS

 ENGLEWOOD, Colo., April 28 /PRNewswire/ -- Electromedics Inc. (NASDAQ-NMS: ELMD) reported that quarterly revenues for the three months ended March 31, 1993 were $9,474,000 compared to $9,675,000 for the first three months of 1992. Net income was $287,000 or 2 cents per share for the three months ended March 31, 1993 compared to $570,000 or 5 cents per share before nonrecurring items for the first quarter of 1992.
 "Domestic sales were impacted by a general slowdown in surgical procedures in the United States which comprises most of our business," said F. James Lynch, president and chief executive officer. "Anxiety about healthcare reforms which may be proposed by the new administration has caused hospitals to change their ordering patterns and delay buying decisions. We remain optimistic that customers will return to customary ordering patterns as their inventory levels become depleted. Electromedics' Blood Therapy products are well positioned to make substantial reductions in healthcare costs around the world and benefit patients needing blood transfusions.
 "While international sales grew 44 percent in the first quarter, our earnings were impacted by the start up costs of our new operations in France and Germany. The foreign offices are managed by French and German nationals. We are confident that these markets will prove to be excellent growth markets for our products as utilization of autotransfusion is approximately one-half of the penetration in the U.S. We must remember that it takes time to develop these markets," said Lynch.
 Research and development expenditures increased 26 percent to $550,000 in the first quarter. These funds are invested in proprietary and innovative new products that reduce the cost of quality healthcare.
 Income after nonrecurring items for the first quarter of 1992 was increased by $1,569,000 or 12 cents per share as a result of the company's adoption of Statement of Financial Accounting Standards No. 109 for income taxes that allowed for a one-time credit. The credit results primarily from a realization of unused net operating losses.
 Electromedics designs, manufactures and markets medical equipment and associated disposable devices, focusing on blood therapy and surgical care. Headquartered in Englewood, Electromedics employs more than 300 men and women. Its products are sold to more than 1,000 hospitals and medical centers throughout the U.S. and in 30 countries.
 ELECTROMEDICS INC.
 Condensed Statements of Income
 (Unaudited)
 Three Months Ended
 March 31,
 1993 1992
 Sales $9,474,000 $9,675,000
 Cost of sales 5,268,000 5,324,000
 Gross profit 4,206,000 4,351,000
 Operating expenses:
 Selling and administrative 3,339,000 2,934,000
 Research and development 550,000 436,000
 Income from operations 317,000 981,000
 Other income and expenses
 Interest income 206,000 238,000
 Other income 96,000 55,000
 Interest expense (156,000) (348,000)
 Income before provision for
 income taxes and
 nonrecurring item 463,000 926,000
 Provision for income taxes 176,000 357,000
 Income before nonrecurring item 287,000 569,000
 Cumulative effect of change
 in accounting principle --- 1,569,000
 Net income $287,000 $2,138,000
 Net income per common share:
 Net income before
 nonrecurring item $.02 $.05
 Cumulative effect of change
 in accounting principle --- .12
 Net income $.02 $.17
 Weighted average number of
 common shares 14,152,080 12,278,949
 -0- 4/28/93
 /CONTACT: Wayne Brown of Carl Thompson Associates, 303-494-5472, for Electromedics/
 (ELMD)


CO: Electromedics Inc. ST: Colorado IN: MTC SU: ERN

BB -- DV003 -- 1866 04/28/93 10:00 EDT
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Publication:PR Newswire
Date:Apr 28, 1993
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