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HOWTEK ANNOUNCES 1993 SECOND QUARTER RESULTS

 HUDSON, N.H., July 15 /PRNewswire/ -- Howtek, Inc. (AMEX: HTK) today reported results of its operations for the second quarter and first half ended June 30, 1993. The company recorded second quarter revenues of $6,191,000, an increase of 17 percent from the $5,315,000 recorded in the same period in 1992. Revenues for the first half were $12,375,000, an increase of 40 percent over 1992's $8,847,000. The company also announced a second quarter profit of $373,000 or 5 cents per share, compared to a profit of $800,000 or 10 cents per share in the same period in 1992. The profit for the first half rose to $1,220,000 or 16 cents per share, an increase of 155 percent over the $479,000 or 6 cents per share recorded in the first half of 1992.
 Revenues and profits did not meet the company's expectations due to the continuing recession in Europe and the persistent sluggishness in the domestic market for graphic arts capital equipment, due mainly to uncertainty about Clinton Administration tax proposals. On the positive side, sales to Pacific Rim countries have shown strong improvement as a result of expanded distribution channels which began in the second quarter of 1993. International revenues accounted for 42 percent of second quarter revenues, up from 28 percent in the first quarter.
 Profits for the second quarter were negatively impacted by the increase in Asia and other international sales over domestic sales at somewhat lower profit margins. Due to the different discount structure to volume customers, Howtek expects that trend to continue as the international arena plays an increasing role in overall volume. Expenses were up due to heavy market promotion activities to offset the stagnant economy and higher than anticipated legal fees this quarter associated with protecting the companies powerful patent position, which could lead to revenues in the future.
 The award winning D4000 drum scanner continues to dominated the quality desktop color market despite new competitive introductions. Sales of the D4000 in the second quarter increased almost 30 percent over the first quarter of 1993. Notwithstanding sluggish current domestic sales, Howtek will continue to invest heavily in new products development in 1993. Investment for new products this year will total about 25 percent of sales, or about $4 million more than in 1992, equal to about 50 cents a share.
 Howtek's Chairman, Robert Howard, indicated today that because of the continuing difficult business climate in the United States and Europe. Howtek will not meet earlier expectations for 1993, but he added that Howtek now believes earnings for 1993 could be in the area of the 50 cents a share that financial community analysts are currently estimating.
 Howtek is a manufacturer of a family of image scanners and pre-press equipment for the printing and publishing market. Howtek's product offerings include: SCANMASTER(tm), a series of drum and flatbed scanners and COLORSCAN(R), a complete pre-press color separation and page make-up system for newspapers, pulishers and graphic arts markets. Howtek was founded in 1984 by Bob Howard who also founded Centronics Data Computer Corp. in 1969 and was co-founder and chairman of Presstek, Inc. in 1987.
 Howtek is traded on the American Stock Exchange, using the symbol HTK.
 HOWTEK, INC.
 Consolidated Statement of Operations
 (unaudited)
 Three Months Ended Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Revenues $6,191,000 $5,315,000 $12,375,000 $8,847,000
 Cost of Sales 3,552,000 2,653,000 6,874,000 4,832,000
 Gross Profit 2,639,000 2,662,000 5,501,000 4,015,000
 Operating Costs 2,087,000 1,766,000 3,980,000 3,358,000
 Interest expense(net) 82,000 96,000 169,000 178,000
 Income (Loss)
 before income
 tax provision 470,000 800,000 1,352,000 479,000
 Provision for
 income tax 97,000 --- 132,000 ---
 Net Income after
 income tax
 provision 373,000 800,000 1,220,000 479,000
 Net Income
 per share 5 cents 10 cents 16 cents 6 cents
 Weighted Shares
 outstanding 7,829,000 7,800,000 7,804,000 7,767,000
 -0- 7/15/93
 /CONTACT: Kennard S. Cloud, president, or Connie Webster, manager of corporate services, both of Howtek, Inc., 603-882-5200/
 (HTK)


CO: Howtek, Inc ST: New Hampshire IN: CPR SU: ERN

CM -- NE006 -- 2001 07/15/93 13:10 EDT
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Date:Jul 15, 1993
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