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 STILLWATER, Minn., Oct. 19 /PRNewswire/ -- INCSTAR Corporation (ASE: ISR) today reported net income of $87,000, or 1 cent per share, for its third quarter ended Oct. 1, 1993, compared with net income of $1,088,000, or 7 cents per share for the third quarter of 1992. Net sales were $10,667,000 in the quarter, a decrease of 8 percent from sales of $11,540,000 in the third quarter of 1992.
 INCSTAR's third quarter sales were negatively impacted by overall lower demand for diagnostic products brought about by global healthcare cost containment measures. In addition, a continuing cyclical decline in the company's bulk antisera business resulted in lower net sales in the quarter. Sales of thyroid and therapeutic drug monitoring (TDM) product lines also continue to be lower due to the market shift toward automated testing for these assays. In that regard, the company has made good progress during the last several months with its fluorescence polarization immunoassay (FPIA) development program, under which current thyroid and TDM products, as well as a number of the company's other immunoassay products, will be converted to an automated format.
 Lower production volumes and lower pricing on some of the company's products contributed to a decline in gross margins for the quarter. However, selling, general and administrative expenses also continued to decline, both in absolute dollars and as a percent of sales, as cost containment measures initiated earlier in the year are being realized. Research and development expenditures continued to increase, as efforts toward commercialization of the company's FPIA technology move forward.
 Net sales for the first nine months of 1993 were $33,091,000, compared with $34,839,000 in the comparable period last year. Net income was $163,000, or 1 cent per share, compared with $3,631,000, or 22 cents per share, in the first nine months of 1992. A $750,000 one-time charge resulting from a workforce reduction in the first quarter is included in year-to-date results for 1993.
 INCSTAR is a Minnesota-based manufacturer and distributor of high quality immunodiagnostic products for health care professionals and manufacturers. The company is an affiliate of the Italian-based Fiat Group (NYSE: FIA).
 INCSTAR Corporation
 Consolidated Statements of Income
 (In thousands except share and per share data)
 Quarter ended Nine months ended
 10/1/93 9/30/92 10/1/93 9/30/92
 Net sales $10,667 $11,540 $33,091 $34,839
 Cost of goods sold 5,865 5,568 17,661 16,532
 Gross profit 4,802 5,972 15,430 18,307
 Selling, general & admin. 3,099 3,425 9,878 10,373
 Research & development 1,390 870 4,154 2,397
 Unusual item 0 0 750 0
 Operating income 313 1,677 648 5,537
 Interest expense (104) (143) (390) (517)
 Other income (expense) 9 (29) 68 (44)
 Income before income taxes 218 1,505 326 4,976
 Provision for income taxes 131 417 163 1,345
 Net income $87 $1,088 $163 $3,631
 Net income per share $.01 $.07 $.01 $.22
 Weighted average shares
 and equivalents 16,348,951 16,326,090 16,309,415 16,338,797
 Consolidated Balance Sheets
 (In thousands)
 Oct. 1, Dec. 31,
 1993 1992
 Total current assets $21,370 $22,126
 Property and equipment, net 17,397 17,860
 Other 4,507 5,083
 Total $43,274 $45,069
 Liabilities and Shareholders' Equity
 Total current liabilities $6,326 $8,263
 Long term debt 7,271 8,167
 Other non-current 1,543 1,362
 Shareholders' equity 28,134 27,277
 $43,274 $45,069
 -0- 10/19/93
 /CONTACT: Jack Falker of Swenson/Falker, 612-371-0000, for INCSTAR; John Booth of INCSTAR, 612-779-1700/

CO: INCSTAR Corporation ST: Minnesota IN: HEA SU: ERN

CP-DB -- MN006 -- 3768 10/19/93 08:58 EDT
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Publication:PR Newswire
Date:Oct 19, 1993

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