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GENERAL COMPUTER CORPORATION REPORTS THIRD QUARTER NET EARNINGS IMPROVED 79 PERCENT WHILE SALES INCREASED 17 PERCENT

 TWINSBURG, Ohio, March 23 /PRNewswire/ -- General Computer Corporation (NASDAQ/NMS: GCCC) today announced that net earnings for the third quarter ended February 28, 1993 were $391,000, up 79 percent from last year's third quarter earnings of $219,000, on a 17 percent increase in sales to $4.0 million from $3.4 million. Earnings per share were 21 cents compared with 13 cents a year ago.
 Claims processing revenue increased 29 percent to $2.3 million, accounting for most of the overall sales increase. Commenting on the quarter, Richard R. Pilarczyk, president and chief executive officer, said, "The increase in claims processing revenue was achieved despite a delay in start up of the Pennsylvania medicaid program. We also saw a rebound in systems sales from our second quarter. This overall growth in sales, and the leverage it provided, enabled us to achieve substantially increased earnings even with higher selling expenses and costs associated with support services. In addition, the positive effect of the warrants exercised near the end of the second quarter can be seen in reduced interest expense, which is almost half of last year's." Warrants issued in connection with a 1987 acquisition brought in $3.5 million in cash, of which $2.0 million was used to reduce outstanding debt. "We have momentum going into the fourth quarter which should favorably impact operating results," he concluded.
 For the nine-month period, net earnings of $587,000, or 32 cents per share, were more than double the prior year period's $237,000, or 15 cents per share. Sales of $10.7 million were 11 percent above 1992 levels, boosted by a 23 percent increase in claims processing revenue to $5.9 million.
 General Computer Corporation is a leading provider of electronic systems and services to pharmacies, physicians and the healthcare industry.
 GENERAL COMPUTER CORPORATION
 STATEMENTS OF EARNINGS
 (In thousands except per share amounts)
 Quarter Ended Nine Months Ended
 Feb 28, Feb 29, Feb 28, Feb 29,
 1993 1992 1993 1992
 Sales
 Services:
 Claims processing $2,267 $1,763 $5,926 $4,833
 Other 1,074 1,006 3,207 2,999
 3,341 2,769 9,133 7,832
 Systems 677 648 1,537 1,706
 Lease operations 1 13 5 56
 Total sales 4,019 3,430 10,675 9,594
 Cost of sales:
 Services 1,685 1,348 4,577 3,753
 Systems 732 713 1,949 2,115
 Total 2,417 2,061 6,526 5,868
 Gross profit 1,602 1,369 4,149 3,726
 Expenses
 Selling 630 522 1,774 1,490
 General & administrative 559 528 1,602 1,668
 Total operating
 expenses 1,189 1,050 3,376 3,158
 Operating profit 413 319 773 568
 Interest expense (54) (101) (239) (353)
 Sundry income 32 1 53 22
 Earnings before
 income taxes 391 219 587 237
 Income taxes (3) 0 0 0 0
 Net earnings $ 391 $ 219 $ 587 $ 237
 Net earnings per
 common share $ .21 $ .13 $ .32 $ .15
 Common stock and
 equivalents 1,972 1,698 1,853 1,686
 (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 company stock, valued at $19.06 per share. The acquisition has been accounted for by the purchase method. Accordingly, the statement of operations 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- 3/23/93
 /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

BM -- CL005 -- 8596 03/23/93 10:37 EST
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Date:Mar 23, 1993
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