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ENHANCED IMAGING TECHNOLOGIES REPORTS THIRD QUARTER RESULTS

 IRVINE, Calif., Oct. 28 /PRNewswire/ -- Enhanced Imaging Technologies Inc. (NASDAQ: EITI) today reported results for the third quarter and nine months ended Sept. 30, 1993. Revenues for the quarter were $12,511,000 compared with $10,906,000 recorded during the third quarter of 1992. The net loss for the quarter was $87,000, or ($0.01) per share, as compared to net income in the third quarter of 1992 of $1,067,000, or $0.17 per share. Weighted average common shares and equivalents for the third quarter ended Sept. 30, 1993 were 6,415,110, compared with 6,306,040 for the quarter ended Sept. 30, 1992.
 Revenues for the nine months ended Sept. 30, 1993, were $35,359,000 compared with $33,315,000 reported for the nine month period in 1992. Net income for the 1993 period was $331,000, or $0.05 per share, compared with net income of $3,273,000, or $0.55 per share, for the nine months ended Sept. 30, 1992. Weighted average common shares and equivalents during the nine months ended Sept. 30, 1993, were 6,412,032, compared with 5,999,212 for the nine months ended Sept. 30, 1992.
 "The third quarter reflects revenue growth from the medical products and services segment of EIT, which includes Vari-X and the recently acquired EIT Systems Division," said Peter P. Tong, president and chief executive officer. "Vari-X revenues were $7,963,000 or 13.9 percent ahead of the same period last year, reflecting the contributions of the two regional cine film distributors acquired during the fourth quarter of 1992. Compared to the second quarter of 1993, however, Vari-X revenues were down 5.2 percent due primarily to a softness in the U.S. cine film market. EIT Systems Division, which was acquired on May 1, 1993, generated revenues of $3,368,000 in the third quarter of 1993."
 "Earnings for the quarter and nine months for the medical products and services segment of EIT were negatively affected by increases in selling costs without a corresponding increase in revenues which represent the additional costs to support sales of the two cine film distributors acquired in the fourth quarter of 1992 and the costs to support the Systems Division acquired in May 1993," added Tong.
 "Earnings were also negatively affected by the performance of our optical filters subsidiary, ODI, which continues to operate below historical levels. ODI revenues for the third quarter were $1,180,000 down from $3,913,000 for the same quarter in 1992. As previously reported, revenues have been affected by the loss of a major customer and increased competition in the world market for optical filters for computer monitors, with a corresponding drop in sales volumes and margins. In addition, the third quarter reflects an increase in reserve for obsolete inventory and for doubtful accounts which totaled approximately $300,000," continued Tong. "We have been pursuing a plan to increase sales of optical filters for computer monitors through increased attention to our domestic dealer network and new product development. However, more action will be needed to return this division to acceptable performance. We expect to take further action soon to improve ODI's contribution to our overall corporate profitability," continued Tong.
 Enhanced Imaging Technologies Inc. is focusing its efforts on becoming a leader in the design, manufacture and sale of high- performance, cost-effective and reliable medical image acquisition and management systems. EIT's medical imaging business is comprised of its Torrance, Calif.-based Systems Division and its wholly owned subsidiary, Vari-X Inc. The Systems Division manufactures a line of digital imaging products used in cardiac catheterization laboratories as well as components and subsystems for original equipment manufacturers for use in other radiology and ultrasound applications. Vari-X is the leading supplier of specialized films and film-related imaging products and services designed to optimize the quality of cardiac images produced in cardiac catheterization laboratories. Its products include cine angiography film manufactured by AGFA, Ilford and DuPont, digital imaging products manufactured by the Systems Division and InfiMed and numerous related accessories. EIT has a subsidiary, Optical Devices Inc., which develops, manufactures and markets optical filters that enhance the image quality and safety of electronic visual displays.
 ENHANCED IMAGING TECHNOLOGIES INC.
 CONSOLIDATED STATEMENTS OF OPERATIONS
 Unaudited
 (Dollars in thousands, except per share data)
 Three months Nine Months
 Ended Sept. 30, Ended Sept. 30,
 1993 1992 1993 1992
 Net revenues $12,511 $10,906 $35,359 $33,315
 Cost of sales 7,685 5,227 20,385 16,017
 Gross profit 4,826 5,679 14,974 17,298
 Selling, general
 and administrative
 expenses 4,784 3,335 13,549 10,001
 Income before
 interest and taxes 42 2,344 1,425 7,297
 Interest, net 240 324 730 1,186
 Income/(loss) before
 income taxes (198) 2,020 695 6,111
 Provision/(benefit)
 for income taxes (111) 953 311 2,838
 Income/loss before
 effect of
 accounting change (87) 1,067 384 3,273
 Cumulative effect of
 accounting change --- --- 53 ---
 Net income/(loss) $ (87) $ 1,067 $ 331 $ 3,273
 Net income/(loss) per
 common share and
 equivalent common
 share $ (0.01) $ 0.17 $ 0.05 $ 0.55
 Weighted average common
 shares and equivalent
 common shares
 outstanding 6,415,110 6,306,040 6,412,032 5,999,212
 ENHANCED IMAGING TECHNOLOGIES INC.
 CONSOLIDATED BALANCE SHEETS
 (Dollars in thousands)
 Sept. 30, Dec. 31,
 1993 1992
 (Unaudited)
 ASSETS
 Current assets:
 Cash and cash equivalents $ 850 $ 2,073
 Accounts receivable-trade, net 9,068 9,784
 Inventories 7,541 6,268
 Other current assets 1,190 259
 Total current assets 18,649 18,384
 Property and equipment, net 3,648 1,634
 Other assets 313 811
 Intangible assets, net 4,892 5,698
 Excess of cost over
 acquired net assets, net 15,918 16,535
 Total assets $43,420 $43,062
 LIABILITIES AND
 STOCKHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $ 2,378 $ 1,657
 Accrued liabilities 819 1,263
 Notes payable,
 due within one year 1,856 1,495
 Notes payable to stockholders 1,813 453
 Deferred income taxes 214 175
 Total current liabilities 7,080 5,043
 Notes payable 2,037 2,931
 Notes payable to stockholders 1,084 2,252
 Other liabilities 140 246
 Total liabilities 10,341 10,472
 Commitments and contingencies --- ---
 Total stockholders' equity 33,079 32,590
 Total liabilities and
 stockholders' equity $43,420 $43,062
 -0- 10/28/93
 /CONTACT: Doug Sherk or Miriam Adler, 415-296-7383, or Jill Moskowitz, 212-850-5600, all of Morgen-Walke Associates for Enhanced Imaging Technologies/
 (EITI)


CO: Enhanced Imaging Technologies Inc. ST: California IN: TLS SU: ERN

LW-TM -- SF005 -- 7652 10/28/93 06:31 EDT
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Date:Oct 28, 1993
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