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FastComm Reports Profit on Record Quarterly Revenue; Net Earnings of $206,000 on Revenue of $3 million.

STERLING, Va.--(BUSINESS WIRE)--March 8, 1996--FastComm Communications Corp. today reported a return to profitability for the third quarter of fiscal year 1996, which ended Feb. 3, 1996, on sharply higher revenue.

Revenue for the third quarter of $3.05 million set a new Company record. This is an increase of 66 percent over the $1.84 million reported in the previous quarter, and 135 percent growth from the $1.3 million reported in the third quarter of fiscal 1995. For the first three quarters revenue rose 85 percent from $3.4 million last year to $6.3 million in FY 1996.

Net income this quarter was $206,000 ($.02 per share) compared to losses of $558,000 ($.06 per share) in the preceding quarter and $799,000 ($.09 per share) in the same quarter last year.

"We are happy and encouraged to see our long-term product and marketing strategy yielding positive financial results," said Peter C. Madsen, FastComm CEO and Chairman. "The rise in revenue is directly attributable to our focus on major frame relay networks, particularly recent orders that are now ramping up deliveries."

Orders for frame relay access devices received during the quarter exceeded revenue. The backlog reached a new high.

Quarter Highlights

-- GTE, a FastComm reseller since March 1995, entered the winning bid for the Oregon State Lottery network, a bid that included 3400 FastComm FRADS. The initial order from GTE is the largest single order ever received by the Company. GTE is actively bidding FastComm frame relay products in other network proposals.

-- UNISYS agreed to become a master reseller of FastComm equipment. UNISYS earlier had won the 350-site Massachusetts "Motor Voter" network with FastComm FRADs.

-- General DataCom signed an agreement to resell FastComm FRADs worldwide as a component of its complete frame relay network solution.

-- First shipments were made of FastComm's new RingFRAD(TM) token ring to frame relay access devices.

-- FastComm introduced the WEB.router(TM) Internet access edge router with unique automatic features that simplify installation and configuration. The list price, starting at $695, sets a new benchmark for price/performance in this product category.

For more information, or to request a data sheet of any FastComm product, phone 703/318-7750; email to; or consult the FastComm home page on the World Wide Web at

FastComm Communications Corp. (NASDAQ: FSCX) designs, manufactures, and sells digital and analog access products for public and private networks. Its products include X.25 and frame relay concentrators, FRADs, and Internet access routers; T-1/E-1 ATM access equipment; Frame Relay tester to speed installations; specialty modems; leased line and Switched 56 CSU/DSUs; SuperView(TM) data switch for managing multiple remote devices; and a family of high speed data compressors. -0-

Condensed Statements; thousands of dollars, except per share data

Statement of Operations
 Three Fiscal
 Fiscal Qtr. Ended Qtrs Ended
 Feb. 3, Feb. 4, Feb. 3 Feb. 4
 1996 1995 1996 1995
 (Unaudited) (Unaudited)

Revenues $ 3,051 $ 1,301 $ 6,292 $ 3,428
 Cost of sales 1,489 704 3,124 1,782
 Selling, general and
 administrative 1,001 1,119 3,046 3,089
 Research and development 351 225 990 688
 Depreciation and amortization 59 55 199 161

Income/(loss) from operations 151 (802) (1,067) (2,292)

Other income (expense)
 Other income 20 22
 Interest income/expense (net) 35 3 78 2
Net income/(loss) $ 206 $(799) $ (967) $(2,290)
Earnings/(loss) per share
 Primary $ 0.02 $ (0.09) $ (0.10) $ (0.28)
Weighted average number of shares
 Primary 9,780,384 8,428,240 9,478,959 8,224,283

Balance sheet

 Feb. 3, 1996 April 30, 1995

Cash $ 1,258 $ 3,105
Restricted Investments 375
Accounts receivable (net) $ 2,783 $ 1,332
Inventories (net) 1,946 1,969
Prepaid and other 113 75
Property, plant and equipment 376 281
Software license and
 other intangibles 289 358
Other assets 140 82
 $ 6,905 $ 7,577

Liabilities Shareholders Equity

Notes payable $ 156 $ 226
Accounts payable and accrued
 liabilities 1,473 969
Other current liabilities 45 101
Long term obligations 132
 1,674 1,428
Shareholders' equity 5,231 6,149
 ------ -------
 $ 6,905 $ 7,577

CONTACT: FastComm Communications Corp., Sterling

Mark Rafferty, 703/318-4303
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Publication:Business Wire
Date:Mar 8, 1996
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