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GENERAL INSTRUMENT CORPORATION REPORTS SECOND QUARTER RESULTS; SALES UP 20 PERCENT OVER 1992; EPS SWINGS FROM $0.23 LOSS TO $.20 PROFIT

 CHICAGO, July 21 /PRNewswire/ -- General Instrument Corporation (NYSE: GIC) today reported financial results for the second quarter ended June 30, 1993. Sales were up 20 percent to $312 million, from $259 million in the second quarter of 1992. Operating income increased to $40 million for the 1993 quarter, compared to $26 million for the comparable 1992 quarter. Net income was $12 million, or $0.20 per share, compared to a net loss of $10 million, or $0.23 per share, in the second quarter of 1992.
 Sales increases were posted in all lines of business. Year-to-year sales growth into the U.S. cable TV market continued to reflect increased spending by cable TV operators on distribution infrastructure and addressable converters. Sales of power semiconductor division products were also strong.
 "The underlying strength of our core businesses continues to provide a strong platform for GI's participation in the coming cable TV industry transition from analog to digital technology, and from entertainment video to interactive multimedia," said Donald Rumsfeld, chairman and chief executive officer. "The restructuring of our senior and subordinated debt this quarter further strengthened GI's operating outlook, providing approximately $25 million of annual interest savings that is now available both to increase future earnings and for investment in the near-term market opportunities that these transitions provide."
 During the second quarter of 1993, General Instrument completed the restructuring of its senior bank agreement, resulting in a reduction in interest expense and a simplification of the overall structure of the agreement. GI also completed the sale of $500 million of 5 percent convertible junior subordinated notes, and repaid all of the $600 million of 9-1/2 percent subordinated debentures that were issued when Forstmann Little & Co. acquired the company in 1990.
 Additional highlights of the second quarter of 1993 included:
 -- The company signed a definitive agreement with Tele- Communications, Inc., for the sale of dual-mode DigiCipher(TM) II/MPEG-2 digital compression converters employing GI's digital compression technology and its access control and encryption technology. The agreement includes a blanket purchase order for 1,000,000 converter terminals and related equipment.
 -- Separately, General Instrument announced a broad DigiCipher II licensing program, making DigiCipher II technology available for incorporation into a wide range of consumer and computer products to ensure compatibility and interoperability between various products. GI also announced that the DigiCipher II decoders will incorporate the ability to decode MPEG-2 bitstreams to further enhance interoperability with devices that may incorporate MPEG-2 compression.
 -- In April, GI, together with Intel Corporation and Microsoft Corporation, announced that General Instrument will integrate Intel and Microsoft computer technologies into its next generation of analog and digital addressable cable TV converters. The products developed under this arrangement will make possible a vast array of new interactive and multimedia services for the consumer through the cable TV network.
 -- The company joined with the other all-digital proponents for the U.S. HDTV standard in a "Grand Alliance" that will share technology and potential future royalties. This arrangement is designed to facilitate the timely development and deployment of an all-digital HDTV standard in the United States. The agreement also provides a business framework for overcoming various potential impediments to widespread deployment of the standard both in the U.S. and abroad.
 General Instrument is a world leader in broadband communications, distribution and access control technologies for cable, satellite, and terrestrial broadcasting applications, as well as in discrete power rectifying components.
 GENERAL INSTRUMENT CORPORATION
 Consolidated Statements of Operations
 (Unaudited, In Thousands, Except Earnings (Loss) Per Share)
 Periods Ended Three Months Six Months
 June 30, 1993 1992 1993 1992
 Net sales $311,761 $259,006 $615,004 $492,323
 Operating costs and expenses:
 Cost of sales 216,495 182,208 425,961 355,983
 Selling, general and
 administrative (A) 32,402 31,194 66,525 68,364
 Research and development 16,531 13,272 33,184 26,302
 Amortization of excess of
 cost over fair value of net
 assets acquired 6,433 6,471 12,866 12,942
 Total operating costs and
 expenses 271,861 233,145 538,536 463,591
 Operating income 39,900 25,861 76,468 28,732
 Other income (expense) (1,466) (262) 1,281 612
 Interest expense, net (21,250) (29,298) (44,665) (59,346)
 Gain (loss) from divestiture
 businesses and assets (21) 9,213 (21) 9,213
 Income (loss) before income
 taxes, extraordinary item
 and cumulative effect of
 changes in accounting
 principles 17,163 9,514 33,063 (20,789)
 Provision for income taxes (4,894) (4,091) (9,601) (6,100)
 Income (loss) before
 extraordinary item and
 cumulative effect of changes
 in accounting principles 12,269 1,423 23,462 (26,889)
 Extraordinary charge resulting
 from write-off of deferred
 financing costs in conjunction
 with early extinguishment
 of debt -- (11,598) -- (11,598)
 Cumulative effect of changes
 in accounting principles:
 Accounting for income taxes -- -- 10,331 --
 Accounting for post-retirement
 benefits other than pensions -- -- (10,114) --
 Net income (loss) $12,269 ($10,175) $23,679 ($38,487)
 Weighted average
 shares outstanding 61,001 43,370 60,845 39,303
 Earnings (loss) per share:
 Earnings (loss) before
 extraordinary item and
 cumulative effect of
 changes in accounting
 principles $0.20 $0.03 $0.39 ($0.68)
 Extraordinary charge resulting
 from write-off of deferred
 financing costs in conjunction
 with early extinguishment
 of debt -- (0.27) -- (0.30)
 Cumulative effect of changes
 in accounting principles - net -- -- -- --
 Net income (loss) $0.20 ($0.23) $0.39 ($0.98)
 NOTE: (A) The six months ended June 30, 1993 includes approximately $2.2 million of compensation expense related to stock appreciation rights, whereas the six months ended June 30, 1992 includes $6.9 million of compensation expense associated with the issuance of common stock, stock options, and stock appreciation rights.
 -0- 7/21/93
 /CONTACT: George Sard or Anna Cordasco, both of Sard Verbinnen & Co., 212-687-8080, for General Instrument Corporation/
 (GIC)


CO: General Instrument Corporation ST: Illinois IN: TLS SU: ERN

TM-LD -- NY104 -- 4223 07/21/93 18:38 EDT
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Date:Jul 21, 1993
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