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GENERAL COMPUTER CORPORATION REPORTS SUBSTANTIAL IMPROVEMENT IN SALES AND EARNINGS FOR FOURTH QUARTER AND FISCAL YEAR

 GENERAL COMPUTER CORPORATION REPORTS SUBSTANTIAL IMPROVEMENT
 IN SALES AND EARNINGS FOR FOURTH QUARTER AND FISCAL YEAR
 TWINSBURG, Ohio, July 22 /PRNewswire/ -- General Computer Corporation (NASDAQ/NMS: GCCC) announced today that 1992 fourth quarter net earnings were more than two and one-half times 1991's and that net earnings for the fiscal year ended May 31, 1992 were almost six times greater than the prior year. Financial results for fiscal 1991 gave been restated and all periods are presented on a consistent basis to include the effects of a change in the method of service revenue recognition, as prescribed by the American Institute of Certified Public Accountants and adopted by the Company in the fiscal 1992 fourth quarter.
 Sales in the fourth quarter were $3.6 million, up 16 percent from last year's $3.1 million, the result of both service revenue and system revenue exceeding last year's levels. Service revenue increased 9 percent as claims processing revenue of $1.7 million was 28 percent higher than last year's $1.3 million. System sales were $983,000, up 45 percent from last year's $677,000. Commenting on sales performance, Richard R. Pilarczyk, president and chief executive officer, stated, "We are very pleased with the improvement in system sales achieved in the fourth quarter. Claim processing revenue in this year's fourth quarter, while substantially above last year's quarter, was slightly below the third quarter level due in part to the seasonal decline in the number of prescriptions written and the timing of adding new third-party payor plans. We expect growth in this area to return to the trends we experienced in prior quarters," he continued.
 Improved gross profit, continued control of expenses and lower interest cost resulted in net earnings of $470,000 or 27 cents per share in the 1992 quarter compared to $175,000 or 11 cents per share in last year's quarter.
 For the year, sales of $13.2 million were 7 percent above last year's $12.3 million. The 43 percent increase in claims processing revenue ($6.6 million compared to $4.6 million last year) more than offset declines in other service revenue and systems revenue.
 Net earnings for the year were $707,000 or 42 cents per share compared to last year's $123,000 or 8 cents per share.
 "With the continued focus on healthcare and the costs of providing it, and with the strategic alliances we have established in both the pharmacy and the physician areas, we are very optimistic about the future," Pilarczyk concluded.
 General Computer Corporation is a leading developer of electronic systems and services for pharmacies and the health care industry.
 GENERAL COMPUTER CORPORATION
 STATEMENTS OF EARNINGS
 (In thousands except per share amounts)
 Quarter Ended Year Ended
 May 31 May 31
 1992 1991 1992 1991
 Sales
 Services:
 Claims processing $1,722 $1,349 $6,555 $4,581
 Other 932 1,093 3,931 4,065
 Total 2,654 2,442 10,486 8,646
 System sales 983 677 2,689 3,538
 Lease operations 8 29 64 149
 Total sales (1) 3,645 3,148 13,239 12,333
 Cost of sales:
 Services 1,277 1,064 5,030 4,214
 Systems 744 754 2,859 3,256
 Total 2,021 1,818 7,889 7,470
 Gross profit 1,624 1,330 5,350 4,863
 Expenses
 Selling 518 495 2,008 1,882
 General & administrative 557 507 2,225 2,235
 Total operating
 expenses 1,075 1,002 4,233 4,117
 Operating profit 549 328 1,117 746
 Interest expense (85) (159) (438) (660)
 Sundry income 6 6 28 37
 Earnings before
 income taxes 470 175 707 123
 Income taxes (2) 0 0 0 0
 Net earnings (1) $ 470 $ 175 $ 707 $ 123
 Net earnings per
 common share (1) $ .27 $ .11 $ .42 $ .08
 Common stock and
 equivalents 1,722 1,625 1,695 1,586
 (1) In December, 1991 the American Institute of Certified Public Accountants issued Statement of Position 91-1, "Software Revenue Recognition," requiring recognition of service contract revenue over the period of the contract instead of at the time of billing, which was the company's policy. The company changed its method of revenue recognition to comply with the statement in the fourth quarter of fiscal 1992 and has restated preceeding fiscal periods to reflect the change. As a consequence, the first three quarters of fiscal 1992 have been restated and in the fiscal 1992 fourth quarter and year, sales and net earnings were increased by $107,000 and $49,000, respectively, increasing net earnings per share by 6 cents and 3 cents, respectively. Fiscal 1991 amounts previously reported for the fourth quarter and year were:
 Quarter Ended Year Ended
 May 31 May 31
 1991 1991
 Sales (000's) $3,115 $12,446
 Net earnings (000's) 142 236
 Net earnings per share $ .09 $ .15
 (2) The company has operating loss carryforwards available, therefore, no provision was made for Federal income taxes.
 -0- 7/22/92 R
 /CONTACT: David R. Stitt of General Computer Corp., 216-425-3241; or Bill Dupuy of Edward Howard & Co., 216-781-2400 for General Computer Corp./
 (GCCC) CO: General Computer Corp. ST: Ohio IN: CPR SU: ERN


LC -- CL015 -- 2026 07/22/92 14:43 EDT
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Date:Jul 22, 1992
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