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GROUNDWATER TECHNOLOGY ANNOUNCES SECOND QUARTER RESULTS

 NORWOOD, Mass., Nov. 19 ~PRNewswire~ -- Groundwater Technology, Inc. (NASDAQ-NMS: GWTI), a leading environmental consulting and remediation firm, today reported second-quarter and six-month results for the period ending Oct. 31, 1992.
 Gross revenues for the second quarter of fiscal 1993 were $44.2 million, a decrease of 11 percent, compared to gross revenues of $49.5 million in the same quarter last year. Net revenues were $33.4 million for the three-month period, down 9 percent from $36.8 million for the corresponding period last year. Net income for the three-month period was $1.8 million, or 24 cents per share, compared to $2.8 million, or 35 cents per share, for the same period last year.
 For the six months ended Oct. 31, 1992, gross revenues were $90.2 million, down 4 percent from $94.4 million a year earlier. Net revenues for the first six months of fiscal 1993 were $68.9 million, a 3 percent decrease from $70.9 million for the same period in fiscal 1992. Net income was $3.9 million, or 50 percent per share, for the fiscal 1993 six-month period compared to $5.1 million, or 65 cents per share, for the same period last year.
 Commenting on second-quarter results, Robert E. Sliney, Jr., vice president and chief financial officer, stated, "The reduction in revenues for the second quarter reflect the decline in activity by our major petroleum customers, who have reduced capital expenditures in response to lower profits. During the quarter, we have seen this trend spread to certain international markets, particularly in the United Kingdom. While we have made significant progress in reducing our operating costs, notably in the reduction of our headcount, we are mindful that our people are our greatest resource and we must ensure that we preserve our revenue base. We continue to focus on increased efficiency and quality in the delivery of our services, as well as pursuing opportunities in the industrial, international and government markets to counter the reduction in the underground storage tank market."
 The company has an ongoing Stock Repurchase Program which authorizes the repurchase of up to 800,000 shares of its common stock from time to time through open market purchases. The company has purchased approximately 500,000 shares since the beginning of this program.
 GROUNDWATER TECHNOLOGY, INC.
 Consolidated Statements of Income
 (Unaudited)
 (In thousands, except per share amounts)
 Thirteen weeks ended Twenty-six weeks ended
 Oct. 31, Oct. 26, Oct. 31, Oct. 26,
 1992 1991 1992 1991
 Gross revenue $44,183 $49,536 $90,153 $94,359
 Cost of sub-
 contracted
 services 10,800 12,697 21,288 23,430
 Net revenue 33,383 36,839 68,865 70,929
 Cost of net revenue 20,353 20,587 41,893 39,825
 Gross profit 13,030 16,252 26,972 31,104
 Selling, general
 and administrative 10,507 12,335 21,607 23,999
 Income from
 operations 2,523 3,917 5,365 7,105
 Investment
 income, net 409 473 855 1,029
 Other income, net 89 90 248 147
 Income before
 provision for
 income taxes 3,021 4,480 6,468 8,281
 Provision for
 income taxes 1,179 1,702 2,523 3,147
 Net income $1,842 $2,778 $3,945 $5,134
 Earnings per
 common share 24 cents 35 cents 50 cents 65 cents
 Weighted average
 shares outstanding 7,763 7,894 7,852 7,886
 GROUNDWATER TECHNOLOGY, INC.
 Gross Revenues vs. Net Revenues
 (in thousands except per share data)
 Fiscal year 1993
 Q2 Q1
 Gross revenues 44,183 45,970
 Less cost of
 subcontracted services 10,800 10,488
 Net revenues 33,383 35,482
 Less equipment revenues 2,842 2,837
 Net services revenues 30,541 32,645
 Gross profit on services 12,662 13,559
 Gross profit on services
 as a percentage of net
 services revenue 41.5 pct 41.5 pct
 Income from operations 2,523 2,842
 Operating income as a
 percentage of gross
 revenues 5.7 pct 6.2 pct
 Operating income as a
 percentage of net revenues 7.6 pct 8.0 pct
 Fiscal year 1992
 Q4 Q3 Q2 Q1
 Gross revenues 52,109 47,232 49,536 44,823
 Less cost of
 subcontracted services 11,421 12,381 12,697 10,733
 Net revenues 40,688 34,851 36,839 34,090
 Less equipment revenues 3,695 3,123 3,558 3,331
 Net services revenues 36,993 31,728 33,281 30,759
 Gross profit on services 16,464 13,837 15,308 13,920
 Gross profit on services
 as a percentage of net
 services revenue 44.5 pct 43.6 pct 46.0 pct 45.3 pct
 Income from operations 4,361 3,158 3,917 3,188
 Operating income as a
 percentage of gross
 revenues 8.4 pct 6.7 pct 7.9 pct 7.1 pct
 Operating income as a
 percentage of net
 revenues 10.7 pct 9.1 pct 10.6 pct 9.4 pct
 Fiscal year 1991
 Q4 Q3
 Gross revenues 43,539 36,379
 Less cost of
 subcontracted services 9,095 8,490
 Net revenues 34,444 27,889
 Less equipment revenues 3,750 3,145
 Net services revenues 30,694 24,744
 Gross profit on services 13,689 10,455
 Gross profit on services
 as a percentage of net
 of net services revenue 44.6 pct 42.3 pct
 Income from operations 2,838 1,986
 Operating income as a
 percentage of gross
 revenues 6.5 pct 5.5 pct
 Operating income as a
 percentage of net
 revenues 8.2 pct 7.1 pct
 -0- 11~19~92
 ~CONTACT: Patricia O. Muzzy, investor relations manager of Groundwater Technology, 617-769-7600~
 (GWTI)


CO: Groundwater Technology ST: Massachusetts IN: SU: ERN

CH -- NE016 -- 3125 11~19~92 17:02 EST
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Date:Nov 19, 1992
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