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INTELLIGENT ELECTRONICS REPORTS 408 PERCENT INCREASE IN EARNINGS

 EXTON, Pa., Aug. 23 /PRNewswire/ -- Intelligent Electronics Inc. (NASDAQ-NMS: INEL) today reported second quarter revenues of $613.2 million, marking an increase of 31 percent from revenues of $466.6 million during last year's comparable quarter.
 Income from continuing operations for the quarter ended July 31 increased 408 percent to $9.2 million, or $0.26 per share, from $1.8 million or $0.05 per share during last year's comparable quarter.
 Highlights of the quarter included an increase in Intelligent's gross profit and operating margins, resulting primarily from expansion of the company's systems configuration services and its taking advantage of purchasing opportunities. Results represent the company's fourth consecutive quarter of increased earnings from continuing operations. Another highlight of the quarter included the establishment of a quarterly cash dividend policy and the declaration of an $.08 per share cash dividend, which will be paid September 1.
 Greg Pratt, Intelligent's President and COO, said, "The strength of our business model is that it enables us to build incremental sales with minimal additional cost, dropping profits directly to the bottom line. The company is particularly well positioned as it heads into its busiest time of year and will continue to leverage its debt free, cash strong status."
 Intelligent Electronics comprises a leading delivery system of technology products and services. The company operates two divisions: The Reseller Network Division (RND) and InteLogistics. The Reseller Network Division is composed of more than 1700 specialists in approximately 900 communities throughout all 50 states of the nation. RND's network provides technology solutions to education, government, and large and small businesses. InteLogistics provides intra-company and third party logistics and customer fulfillment services.
 INTELLIGENT ELECTRONICS INC. AND SUBSIDIARIES
 Consolidated Statement of Operations
 (in thousands, except per-share data, unaudited)
 Three months Six months
 Periods ended July 31, Aug. 1, July 31, Aug. 1,
 1993 1992 1993 1992
 Revenues $613,245 $466,560 $1,230,193 $962,369
 Cost of goods sold 586,436 442,282 1,177,599 905,131
 Gross profit 26,809 24,278 52,594 57,238
 Operating expenses:
 Selling, general and
 administrative
 expenses 12,642 14,394 24,967 31,222
 Amortization of
 intangibles,
 primarily goodwill 1,180 1,260 2,360 2,561
 Total operating
 expenses 13,822 15,654 27,327 33,783
 Income from
 operations 12,987 8,624 25,267 23,455
 Other income (expense):
 Investment and other
 income, net 1,472 (28) 2,610 (66)
 Interest expense (1) (2,564) (356) (4,371)
 Equity in earnings of
 affiliate 461 --- 1,180 ---
 Income from continuing
 operations before
 provision for
 income taxes 14,919 6,032 28,701 19,018
 Provision for
 income taxes 5,725 4,221 11,186 9,250
 Income from continuing
 operations 9,194 1,811 17,515 9,768
 Discontinued operation:
 Loss from discontinued
 operation (net of
 tax benefit of $2,325,
 $1,076 and $1,994) --- (6,106) (2,468) (7,267)
 Gain on sale of BizMart
 (net of tax expense
 of $2,284) --- --- 6,298 ---
 Net income (loss) $9,194 $(4,295) $21,345 $2,501
 Income (loss) per common share and share equivalent:
 Continuing operations $0.26 $0.05 $0.48 $0.26
 Discontinued operation --- (0.16) (0.06) (0.19)
 Sale of BizMart --- --- 0.17 ---
 Net income (loss)
 per share $0.26 $(0.11) $0.59 $0.07
 Dividends declared
 per share $2.08 --- $2.08 ---
 Weighted average number of common shares and share
 equivalents outstanding:
 Primary and fully
 diluted 35,920 37,553 36,386 38,158
 INTELLIGENT ELECTRONICS, INC. and Subsidiaries
 Consolidated Balance Sheet
 (in thousands, except share-related data)
 (unaudited)
 July 31, January 30,
 1993 1993
 Assets:
 Current assets:
 Cash and cash equivalents $105,275 $52,498
 Marketable securities 71,150 ---
 Accounts receivable, net 16,529 8,410
 Inventory 193,955 196,857
 Prepaid expenses and other current assets 1,779 3,576
 Deferred income taxes 6,627 3,276
 Net assets of discontinued operation --- 261,173
 Total current assets 395,315 525,790
 Property and equipment 8,876 8,527
 Intangible assets, primarily goodwill, net 73,945 76,306
 Investments in affiliates 19,354 18,174
 Other assets 1,535 1,535
 Total assets $499,025 $630,332
 Liabilities and Shareholders' Equity:
 Current liabilities:
 Current portion of long-term debt --- $17,619
 Accounts payable 278,138 304,045
 Accrued liabilities 22,143 26,746
 Total current liabilities 300,281 348,410
 Other liabilities 1,849 1,395
 Commitments and contingencies --- ---
 Shareholders' equity:
 Common stock $.01 par value per share:
 Authorized 100,000,000 shares,
 issued and outstanding:
 38,741,834 and 36,961,154 shares 387 370
 Additional paid-in capital 213,156 196,742
 Treasury stock (57,181) (10,896)
 Retained earnings 40,533 94,311
 Total shareholders' equity 196,895 280,527
 Total liabilities and shareholders'
 equity $499,025 $630,332
 /delval/
 -0- 8/23/93
 /CONTACT: Stephanie Cohen, vice president and treasurer, 215-458-6603, or Patrice Johnson, vice president-Marketing, 215-458-6706, both of Intelligent Electronics/
 (INEL)


CO: Intelligent Electronics, Inc. ST: Pennsylvania IN: REA SU: ERN

JM -- PH020 -- 5215 08/23/93 17:53 EDT
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Date:Aug 23, 1993
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