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EXIDE ELECTRONICS GROUP, INC. ANNOUNCES RECORD FOURTH QUARTER AND FISCAL 1991 REVENUES

                    EXIDE ELECTRONICS GROUP, INC.
    ANNOUNCES RECORD FOURTH QUARTER AND FISCAL 1991 REVENUES
    RALEIGH, N.C., Nov. 7 /PRNewswire/ -- Exide Electronics Group, Inc. (NASDAQ: XUPS), the world's largest dedicated manufacturer of power protection products and services, today announced record revenues for the quarter and year ending Sept. 30, 1991.
    Revenues for the quarter ended Sept. 30, 1991, were $54,506,000, up 5.2 percent from fiscal 1990 fourth quarter revenues of $51,828,000.  Net income for the quarter was $1,056,000, or $.19 per share, based on 5,642,000 weighted average shares outstanding, compared with net income of $2,955,000, or $.54 per share, based on 5,448,000 weighted shares outstanding for the corresponding period a year ago.
    For the fiscal year ended Sept. 30, 1991, revenues were $191,559,000 compared to $172,384,000 last year, an increase of 11.1 percent.  The company incurred a net loss of $5,958,000, or $1.10 per share, on 5,438,000 weighted average shares outstanding, compared with net income of $5,022,000, or $.96 per share, on 5,209,000 weighted average shares outstanding for the corresponding period a year ago.
    "Fiscal year 1991 was truly a year of transition for Exide Electronics during which the company faced many significant challenges," said James A. Risher, president and chief executive officer.  "Recessionary economies in our major world markets, a U.S. banking crisis, aggressive competitive pricing, unfavorable product and channel mix and out-of-court settlements of two legal matters contributed to a difficult year.  Despite these adversities, however, we made significant transitions in terms of our product offerings and facilities.  Fiscal 1991 was our most prolific year ever in terms of new product introductions.  We launched a completely new range of technologically advanced products covering power ranges between 2kVA and 12kVA.  The Powerware(R) Plus 6 and Plus 12 families were the most successful product introductions in company history in terms of revenue generation.  We also introduced a new 2kVA model of our Powerware(R) Personal series, as well as enhanced versions of our popular 1kVA model.  Together, these new products uniquely position Exide Electronics as the leader in on-line uninterruptible power systems (UPS) designed for the fast growing office and desktop markets."  According to Risher, the company also underwent major changes with regard to facilities. "To further reduce costs and improve efficiency, we consolidated a number of facilities in our Raleigh, N.C., headquarters location. Beginning in August 1990 with our move to a new headquarters facility and concluding with the consolidation of five manufacturing and warehousing operations into two locations during the fourth quarter, we made a number of facility changes designed to streamline our operations in Raleigh.  These moves will result in substantial savings during the upcoming fiscal year.  In addition, to accommodate our new and expanded product offerings, we opened a new high-volume, low-cost manufacturing facility near Wilmington, N.C. Starting in September 1990, we began production of our new Powerware(R) Plus families employing the latest in production and inventory management techniques.  Start-up expense and additional overhead costs related to this new facility adversely impacted the year.  However, significant progress was made during the fourth quarter reflecting higher volumes and improved efficiency.  We expect this facility to be optimized early in 1992.  While all of these events resulted in a significant amount of non-recurring costs, the long-term effect is to strongly position Exide Electronics for the future."
    Risher further stated that, "While dealing with these changes has been challenging, we made substantial progress and the company continued to improve its results over the course of the year." Income from operations for the fourth quarter was $1,652,000 compared to $174,000 for the third quarter of fiscal 1991 and compared to losses from operations of $4,903,000 and $1,050,000 for the first and second quarters of fiscal 1991, respectively.  The consolidation of facilities, restructuring activities and other measures taken during the year proved effective in returning the company to profitability.
    "Demand for our products and services is encouraging; in particular, we are experiencing strong revenue growth of products in the lower power ranges, primarily attributable to our new product offerings.  Backlog of $76.2 million increased $29.4 million over the corresponding period a year ago reflecting strong federal government orders."
    Exide Electronics also made progress in several other areas during the year.  A five-year requirements contract awarded by the Naval Facilities Engineering Command, announced during the fourth quarter, provides Navy customers worldwide with the ability to purchase uninterruptible power systems and ancillary products and services on a $32.2 million bid quantity award, as required.  Also, during the fourth quarter the company received the first delivery orders for $34 million from the FAA as part of the Air Route Traffic Modernization Program.  The orders cover initial equipment, service and support for the first eight sites.  In total, the FAA plans to replace the UPS systems at 24 regional locations.  Market growth efforts resulted in a number of new negotiated distribution agreements.  An expanded business relationship with Nippon Electric Industry Co., Ltd. (NEI), a major UPS supplier headquartered in Japan, was finalized during the month of September.  This development, coupled with strong sales growth in the Japanese joint venture company, GS-EE Co., Ltd., will build a stronger presence in the sizeable, high-growth Pacific Rim markets.  As part of the agreement with NEI, the company received a $5 million preferred stock investment from NEI.
    Exide Electronics is the largest company in the world dedicated exclusively to developing and manufacturing a full line of power protection systems.  Headquartered in Raleigh, N.C., Exide Electronics responds to the power protection needs of a broad range of businesses and institutions worldwide, including many Fortune 1000 companies, for financial, medical, industrial, telecommunications, military and aerospace applications -- wherever continuous power is essential to daily operations.
                     EXIDE ELECTRONICS GROUP, INC.
                 Consolidated Statements of Operations
               (in thousands, except per share amounts)
                                     3 Months Ended       Year Ended
                                        Sept. 30,          Sept. 30,
                                      1991     1990      1991     1990
    Revenues
     Products                       $44,260  $42,549  $155,217  $138,481
     Services                        10,246    9,279    36,342    33,903
      Total revenues                 54,506   51,828   191,559   172,384
    Cost of revenues
     Products                        35,513   30,456   128,331   102,308
     Services                         5,664    5,314    19,874    18,682
      Total cost of revenues         41,177   35,770   148,205   120,990
    Gross Profit                     13,329   16,058    43,354    51,394
    Selling, general and
     administrative expense          10,004    9,138    40,235    34,261
    Research and development expense  1,673    1,856     7,246     7,062
     Income (loss) from operations    1,652    5,064    (4,127)   10,071
    Interest expense                    810      966     4,073     3,156
    Interest income                    (106)    (327)     (631)  (1,242)
    Other (income) expense             (181)    (159)      312       488
    Income (loss) before income taxes
     and the cumulative prior years'
     effect of change in accounting
     principle                        1,129    4,584    (7,881)    7,669
    Provision for (benefit from)
     income taxes                       165    1,629      (909)    2,647
    Income (loss) before the
     cumulative prior years'
     effect of change in accounting
     principle                          964    2,955    (6,972)    5,022
    Cumulative prior years' effect
     of change in accounting
     for direct costs associated with
     deferred revenues, net
     of income tax effect                92       -      1,014       -
    Net income (loss)                $1,056   $2,955   $(5,958)   $5,022
    Income (loss) per share before
     the cumulative prior years'
     effect of change in accounting
     principle                        $0.17   $0.54     $(1.29)    $0.96
    Per share cumulative prior years'
     effect of change in accounting
     principle                         0.02     -         0.19       -
    Net income (loss) per share       $0.19   $0.54     $(1.10)    $0.96
    Weighted average number of
     shares outstanding               5,642   5,448      5,438     5,209
                            UNAUDITED
                   EXIDE ELECTRONICS GROUP, INC.
                    Consolidated Balance Sheets
                       (dollars in thousands)
    September 30                            1991            1990
    ASSETS
    Current Assets
     Cash                                 $1,440            $928
     Accounts receivable                  50,836          56,300
     Inventories                          33,450          34,043
     Deferred tax asset                    3,487           1,762
     Other current assets                  2,117           2,221
      Total current assets                91,330          95,254
    Property and equipment
     Land buildings and
      leasehold improvements               7,834           2,773
     Machinery and equipment              21,695          16,894
     Construction in progress              4,006           8,016
                                          33,535          27,643
    Less - Accumulated depreciation       12,329           9,010
                                          21,206          18,633
    Funds held in trust for
     future construction                   2,764           5,100
    Other assets                           4,609           4,048
                                        $119,909        $123,035
                 LIABILITIES REDEEMABLE PREFERRED STOCK
                      AND COMMON SHAREHOLDERS EQUITY
    Current liabilities
    Short-term debt                       $1,014          $2,868
    Accounts payable                      29,908          24,902
    Accrued compensation                   3,962           5,430
    Deferred revenues                      6,188           7,667
    Other accrued liabilities              5,419           5,975
     Total current liabilities            46,491          46,842
    Long-term debt                        34,500          35,558
    Deferred gain                            777             831
    Redeemable preferred stock, Series C
     $.01 par value, 6,000 shares
     authorized; 5,000 shares issued
     at September 30, 1991                 5,000              -
    Common shareholders' equity
     Common stock, $.01 par value,
      15,000,000 shares authorized;
      5,480,000 shares issued at
      September 30, 1991 and at
      September 30, 1990                      55               55
    Addition paid-in capital              29,214           29,468
    Retained earnings                      9,884           15,881
    Cumulative translation
     adjustments                              98              235
                                          39,251           45,639
    Less - Treasury stock, at cost
     43,629 shares at Sept., 30, 1991
     and 47,400 shares at Sept. 30, 1990    (377)            (420)
    Notes receivable from shareholders    (5,733)          (5,415)
                                          33,141           39,804
                                        $119,909         $123,035
                                UNAUDITED
    -0-                          11/7/91
    /CONTACT:  Marty R. Kittrell, Chief Financial Officer, Exide Electronics Group, Inc., 919-872-3020/
    (XUPS) CO:  Exide Electronics Group, Inc. ST:  North Carolina IN: SU:  ERN DF -- CH012 -- 2296 11/07/91 14:19 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

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