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GENERAL COMPUTER CORPORATION REPORTS SECOND QUARTER FISCAL 1993 SALES AND EARNINGS IMPROVEMENT

 TWINSBURG, Ohio, Dec. 23 /PRNewswire/ -- General Computer Corporation (NASDAQ/NMS: GCCC) announced today that sales for its second quarter ended November 30, 1992, increased 14 percent to $3.5 million and net earnings were $106,000 or 6 cents per share compared to a net loss of $53,000 or 3 cents per share in last year's second quarter. Last year's second quarter was unfavorably affected by the settlement of a collection action against a former customer resulting in a one time charge against earnings of $150,000.
 Commenting on the quarter, Richard R. Pilarczyk, president and chief executive officer, said, "We are pleased with the 21 percent growth we achieved in claims processing revenue during the quarter. Our over-all performance, however, was affected by several factors designed to benefit sales and operations as the year progresses. First, selling expenses exceeded expectations as we intensified our efforts in both the systems sales area and to a greater extent in the marketing of our physician office on-line claims processing capability. In addition, the roll out of our new Solution Plus -- 4GL system scheduled for the first week of January 1993 caused customers to temporarily postpone their system orders until they could see the new system in operation." The company announced the new 4GL system in October.
 Commenting on the remainder of the year, Pilarczyk stated, "We expect to see improved growth in our claims processing revenue as volume with Employee Benefit Plans expands and as the Pennsylvania Medicaid program starts. We also believe that systems sales should improve in the second half of the year."
 For the first six months, sales of $6.7 million were up 8 percent when compared to last year's first half. Claims processing revenue of $3.7 million was up 19 percent over last year. Net earnings were $196,000 compared to $18,000 last year while earnings per share were 11 cents compared to 2 cents.
 General Computer Corporation is a leading provider of electronic systems and services to pharmacies, physicians and the healthcare industry.
 GENERAL COMPUTER CORPORATION
 STATEMENTS OF OPERATIONS
 (In thousands except per share amounts)
 Quarter Ended Six Months Ended
 November 30 November 30
 1992 1991 1992 1991
 Sales
 Services:
 Claims processing $1,919 $1,590 $3,659 $3,070
 Other 1,123 1,129 2,133 1,993
 3,042 2,719 5,792 5,063
 System sales 446 326 860 1,058
 Lease operations 0 19 4 43
 Total sales 3,488 3,064 6,656 6,164
 Cost of sales:
 Services 1,549 1,286 2,892 2,405
 Systems 1,575 572 1,217 1,402
 Total 2,124 1,858 4,109 3,807
 Gross profit 1,364 1,206 2,547 2,357
 Expenses
 Selling 626 494 1,144 968
 General & administrative 549 657 1,043 1,140
 Total operating
 expenses 1,175 1,151 2,187 2,108
 Operating profit 189 55 360 249
 Interest expense (95) (121) (185) (252)
 Sundry income 12 13 21 21
 Earnings (loss) before
 income taxes 106 (53) 196 18
 Income taxes (3) 0 0 0 0
 Net earnings (loss) $ 106 $ (53) $ 196 $ 18
 Net earnings (loss) per
 common share $ .06 $ (.03) $ .11 $ .02
 Common stock and
 equivalents 1,807 1,574 1,784 1,619
 (1) On July 31, 1992, the Company acquired all of the outstanding capital stock of Mavis Industries, Inc., ("Mavis") in exchange for 41,973 shares of the Company's common stock, valued at $19.06 per share. The acquisition has been accounted for by the purchase method. Accordingly, the statement of earnings includes the results of Mavis' operations from August 1, 1992.
 (2) At May 31, 1992, the Company retroactively adopted the American Institute of Certified Public Accountant's Statement of Position 91-1, "Software Revenue Recognition." Last year's quarterly results have been restated from amounts previously reported and are consistent with the methods applied in determining the current year's quarterly results.
 (3) There is no provision for income taxes as net operating loss carryforwards offset taxable income.
 -0- 12/23/92
 /Contact: David R. Stitt of General Computer Corp., 216-425-3241; or William L. Dupuy of Edward Howard & Co., 216-781-2400, for General Computer Corp./
 (GCCC)


CO: General Computer Corporation ST: Ohio IN: CPR SU: ERN

KK -- CL006 -- 9619 12/23/92 14:34 EST
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Date:Dec 23, 1992
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