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EXIDE ELECTRONICS GROUP, INC. ANNOUNCES RECORD THIRD QUARTER REVENUES

EXIDE ELECTRONICS GROUP, INC. ANNOUNCES RECORD THIRD QUARTER REVENUES
 RALEIGH, N.C., July 28 /PRNewswire/ -- Exide Electronics Group, Inc. (NASDAQ: XUPS), a market leader for power protection products and services, today reported record fiscal 1992 third quarter and nine month revenues and significant operating improvements over the prior year.
 Revenues for the three months ended June 30, 1992, were $54,302,000, up 5.2 percent from fiscal 1991 third quarter revenues of $51,605,000. Net income of $1,264,000, or $.21 per share, based on 5,562,000 weighted average shares outstanding, compared to a net loss of $2,707,000, or $.50 per share, based on 5,447,000 weighted average shares outstanding for the corresponding period a year ago.
 Revenues for the nine months ended June 30, 1992, were $148,516,000 compared to $137,053,000 last year, an increase of 8.4 percent. Net income of $2,372,000, or $.38 per share, based on 5,514,000 weighted average shares outstanding, compared to a net loss of $7,014,000, or $1.29 per share, based on 5,438,000 weighted shares outstanding for the corresponding period a year ago.
 James A. Risher, President and Chief Executive Officer, attributed the significant improvement over the prior year to a number of factors. "We continue to experience strong international sales reflecting, in part, new products designed for those markets as well as a weak dollar overseas. Our high performance large systems and support services are also doing extremely well, representing the ramp-up in our major government contracts. Our small systems growth continues at a brisk pace reflecting the major growth opportunity in this market segment. While overall revenue growth is being moderated by a continued sluggishness in spending for larger, mid-range UPS systems, we continue to perform well against our business goals for the year."
 Risher further noted regarding quarter-to-quarter comparisons, "High volumes in the third quarter of fiscal 1991 were partially associated with the establishment of an initial inventory stocking level for a major OEM account. Thus, our revenue performance met our expectations. Gross profit margin for the first nine months was 27.6 percent versus 21.9 percent for the first nine months of fiscal 1991. This improvement is attributable to higher sales volumes, improved margins of larger systems, improved product and channel mix and the nonrecurrence of costs related to the start-up of our new manufacturing facility and certain product lines during the first nine months of fiscal 1991. We also continue to make significant progress towards optimizing operating expenses utilizing programs which were initially implemented during fiscal 1991."
 Risher also said that demand for products and services continues to remain encouraging. Total backlog increased $74 million to approximately $150 million at June 30, 1992, from $76 million for the second quarter of fiscal 1992 and for the corresponding period a year ago, due principally to strong government orders for the FAA modernization program.
 Exide Electronics also significantly expanded its existing business relationship during the quarter with Japan Storage Battery Co., Ltd. of Kyoto, Japan, which currently participates with the Company in a joint venture, GS-EE Co., Ltd. As part of the expanded arrangement, Japan Storage Battery made a $5,100,000 preferred stock investment in the Company earlier this month. This latest development, coupled with an expanded relationship with Nippon Electric Industry Co., Ltd. (NEI), is intended to build a stronger presence in the large, high growth Pacific Rim markets.
 As previously reported, in January 1989 a case entitled "James Hendry d.b.a. Synergy Sales Engineering v. Exide Electronics Corporation" was filed against the Company's principal subsidiary in which the plaintiff made various claims alleging that the Company failed to pay commissions in connection with sales arising out of a United States government contract. In April 1990, a federal court jury in San Francisco found for the plantiff, awarding damages of approximately $14.9 million, and the Company appealed. The plaintiff cross-appealed, and oral argument was held on May 12, 1992.
 On July 27, 1992, the United States Court of Appeals for the Ninth Circuit entered an order stating "that this case is one in which the parties should attempt a settlement" and directing the parties to engage in settlement negotiations and to report back within thirty days.
 Nicholas Costanza, Vice President and Chief Legal Counsel of the Company, stated: "Exide Electronics has on several occasions in the past attempted in good faith to negotiate a settlement of this case and has not been successful. However, pursuant to the court's order, it will attempt again to reach a reasonable agreement with the plaintiff."
 In February 1992, the Financial Accounting Standards Board (FASB) issued Statement No. 109, "Accounting for Income Taxes," which supersedes existing standards, including FASB Statement No. 96, "Accounting for Income Taxes," the standard followed by the Company. Statement 109 is effective for fiscal years beginning after December 15, 1992, and can be adopted earlier. The Company is currently evaluating the impact and timing of its adoption of FASB 109 and anticipates that adoption will be favorable, primarily due to recording the estimated net benefit of certian tax credit and net operating loss carryforwards.
 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. Exide Electronics' products are used for financial, medical, industrial, telecommunications, military and aerospace applications - wherever continuous power is essential to daily operations.
 EXIDE ELECTRONICS GROUP, INC.
 CONSOLIDATED STATEMENT OF OPERATIONS
 (in thousands, except per share data)
 (Unaudited)
 3 Months Ended 9 Months Ended
 June 30, June 30,
 Revenues 1992 1991 1992 1991
 Products $40,686 $43,468 $113,649 $110,957
 Services 13,616 8,137 34,867 26,096
 Total revenues 54,302 51,605 148,516 137,053
 Cost of revenues
 Products 30,306 35,809 86,645 92,818
 Services 8,612 4,556 20,932 14,210
 Total cost of revenues 38,918 40,365 107,577 107,028
 Gross profit 15,384 11,240 40,939 30,025
 Selling, general and
 administrative expense 10,633 9,312 29,246 30,231
 Research and development
 expense 1,886 1,754 5,319 5,573
 Income (loss) from
 operations 2,865 174 6,374 (5,779)
 Interest expense 1,248 1,075 3,464 3,263
 Interest income (75) (157) (391) (525)
 Other (income) expense (504) 157 (525) 493
 Income (loss) before income
 taxes and the cumulative
 prior years' effect of change
 in accounting principle 2,196 (901) 3,826 (9,010)
 Provision for (benefit from)
 income taxes 932 2,008 1,454 (1,074)
 Income (loss) before the
 cumulative prior years'
 effect of change in
 accounting principle 1,264 (2,909) 2,372 (7,936)
 Cumulative prior years'
 effect of change in
 accounting for direct
 costs associated with
 deferred revenues,
 net of income taxes -- 202 - 922
 Net income (loss) 1,264 (2,707) 2,372 (7,014)
 Preferred dividend requirements 101 - 300 -
 Net income (loss)
 available to common stock $ 1,163 $ (2,707) $ 2,072 $ (7,014)
 Income (loss) per share before
 the cumulative prior years'
 effect of change in
 accounting principle $ 0.21 $ (0.54) $ 0.38 $ (1.46)
 Per share cumulative prior
 years' effect of change in
 accounting principle - 0.04 - 0.17
 Net income (loss) per common
 share $ 0.21 $ (0.50) $ 0.38 $ (1.29)
 Weighted average number of
 common and equivalent
 shares outstanding 5,562 5,447 5,514 5,438
 -0- 7/28/92
 /CONTACT: Media contact -- Karin Cram, Corporate Communications, 919-870-3239, or Investor contact -- Marty R. Kittrell, Chief Financial Officer, 919-872-3020, both of Exide Electronics Group, Inc./
 (XUPS) CO: Exide Electronics Group, Inc. ST: North Carolina IN: CPR ARO SU: ERN


DF -- CH011 -- 4350 07/28/92 19:03 EDT
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Date:Jul 28, 1992
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