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INACOM REPORTS PROFITABLE GROWTH IN SECOND QUARTER; REVENUES INCREASE DESPITE WIDESPREAD PRICE REDUCTIONS IN INDUSTRY

 INACOM REPORTS PROFITABLE GROWTH IN SECOND QUARTER;
 REVENUES INCREASE DESPITE WIDESPREAD PRICE REDUCTIONS IN INDUSTRY
 OMAHA, Neb., July 15 /PRNewswire/ -- InaCom Corp. (NASDAQ: INAC) reported increased revenues and earnings growth for the second quarter of 1992, with net earnings of $2.4 million on revenues of $253.2 million compared to earnings of $829,000 on revenues of $122 million for the second quarter of 1991, according to InaCom President and Chief Executive Officer Bill Fairfield. Per-share earnings grew 40 percent to 28 cents per share, compared to 20 cents per share in the prior-year quarter.
 Year-to-date revenues for 1992 were $497.7 million. Earnings were $4.1 million and earnings per share were 48 cents through the first 26 weeks of 1992. This compares to revenues of $235.9 million, earnings of $2.1 million and earnings per share of 50 cents for the first half of 1991. Increased revenues for 1992 reflect, in part, the merger of ValCom and Inacomp Computer Centers in August of 1991.
 "Despite industry-wide price reductions during the second quarter, InaCom saw revenue increases of 3.6 percent over the first quarter of 1992," said Fairfield. "That, coupled with additional synergies from the merger of ValCom and Inacomp, provided the formula for profitable growth."
 According to Fairfield, margins were up slightly from the first quarter, mostly due to an increase in gross margins for company-owned locations. These margin improvements resulted, in part, from a shift in the sales mix toward higher-margin service revenue. Overall, the company reduced its trade accounts receivables by $17.5 million since the end of the first quarter, which has had a positive impact on working capital.
 Fairfield noted that selling, general and administrative (SG&A) expenses as a percentage of gross margin were 79.6 percent compared to 80.2 percent for this year's first quarter and 85.7 percent for the 1991 second quarter. InaCom's improved ability to leverage SG&A expenses results primarily from the centralization of information systems, distribution and other corporate functions.
 Fairfield added that, going forward, the company will continue to stress asset management and the importance of quality in financial reporting.
 According to InaCom Chairman Rick Inatome, the rise in service revenues for the second quarter is a telling sign. "As InaCom's business continues to migrate toward supporting advanced system solutions, ValCom and Inacomp Centers will be better positioned to provide the support that businesses require for today's more complex computer environments," he said.
 InaCom markets personal computers and related support to customers in 50 states through ValCom and Inacomp Computer Centers. The InaCom channel also includes systems integrators, value-added resellers and other specialized providers of computer systems and support.
 For more information on InaCom, contact Geri Michelic, InaCom Corp., 10810 Farnam, Omaha, NE 68154.
 INACOM CORP. AND SUBSIDIARIES
 Condensed and Consolidated Statements of Earnings
 (unaudited)
 (Amounts in thousands, except per share data)
 13 Weeks Ended 26 Weeks Ended
 June 27, June 29, June 27, June 29,
 1992 1991 1992 1991
 Revenues:
 Franchisor $150,180 $89,016 $288,527 $172,527
 Company-owned
 business centers 103,054 33,010 209,154 63,348
 Total 253,234 122,026 497,681 235,875
 Direct costs:
 Franchisor 136,950 82,706 263,114 160,357
 Company-owned
 business centers 86,996 25,469 177,302 49,183
 Total 223,946 108,175 440,416 209,540
 Gross Profit 29,288 13,851 57,265 26,335
 Selling, general,
 and administrative
 expenses 23,316 12,172 45,760 22,557
 Operating income 5,972 1,679 11,505 3,778
 Interest expense 2,028 344 4,604 454
 Earnings before
 income taxes 3,944 1,335 6,901 3,324
 Income tax expense 1,574 506 2,794 1,262
 Net earnings $2,370 $829 $4,107 $2,062
 Earnings
 per share 28 cents 20 cents 48 cents 50 cents
 Average
 weighted shares
 outstanding 8,500 4,148 8,500 4,126
 -0- 7/15/92
 /CONTACT: Dave Guenthner, CFO, of InaCom, 402-392-3940/
 (INAC) CO: InaCom Corp. ST: Nebraska IN: TLS SU: ERN


SH-CN -- NE013 -- 9720 07/15/92 16:30 EDT
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Date:Jul 15, 1992
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