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INTELLIGENT ELECTRONICS REPORTS THIRD QUARTER EPS OF 30 CENTS; REVENUES UP 40 PERCENT; EARNINGS UP 92 PERCENT

 EXTON, Pa., Nov. 29 /PRNewswire/ -- Intelligent Electronics, Inc. (NASDAQ-NMS: INEL), a leading distributor of products and services to the computer technology industry, today reported a quarterly revenue increase of 40 percent, a 92 percent increase in earnings and 100 percent increase in earnings per share representing the fifth consecutive quarter of increased earnings from continuing operations. IE said the results of its third quarter, ended Oct. 30, reflect strong demand from its growing network of 1,800+ resellers and favorable response to new IE services.
 Intelligent Electronics reported third quarter revenues of $675.9 million, compared to $484.1 million in the 1992 comparable quarter. Income from continuing operations for the quarter was $10.9 million, or $.30 per share, compared to $5.7 million, or $.15 per share, in the same quarter last year.
 Richard D. Sanford, chairman and CEO of IE, said, "Our focus on core competencies has resulted in Intelligent Electronics growing earnings at a faster rate than revenues. New services and strict cost controls have enabled us to capture sustained incremental revenues and increased earnings. Year-to-date, we have achieved a 32 percent revenue increase and an 84 percent increase in earnings compared to last year.
 "IE recently launched two pilot programs to provide a seamless service solution to its resellers," Sanford said. "In addition to providing resellers with the opportunity to have Intelligent Electronics perform all back office product management services, a new financing program offers resellers the ability to extend credit limits through end-user financing. These programs offer opportunities for our network to grow their businesses, improve customer service, and increase profits, while keeping their operating costs low."
 Intelligent Electronics is a leading delivery system of products and services to the computer technology industry. Headquartered in Exton, Intelligent Electronics has two operating groups: The Reseller Network Division (RND) and InteLogistics. The Reseller Network Division comprises more than 1,800 specialists in approximately 900 communities throughout the United States. RND's network provides technology solutions to education, government and large and small businesses. InteLogistics provides intra-company and third party logistics and customer services.
 INTELLIGENT ELECTRONICS, INC. AND SUBSIDIARIES
 Consolidated Statement of Operations
 (Unaudited; in thousands, except per-share data)
 Three months Nine months
 Oct. 30 Oct. 31 Oct. 30 Oct. 31
 1993 1992 1993 1992
 Revenues $675,902 $484,076 $1,906,095 $1,446,445
 Cost of goods sold 645,746 461,824 1,823,345 1,366,955
 Gross profit 30,156 22,252 82,750 79,490
 Operating expenses:
 Selling, general and
 administrative expenses 12,715 10,535 37,682 41,757
 Amortization of intangibles,
 primarily goodwill 1,180 1,180 3,540 3,741
 Total operating expenses 13,895 11,715 41,222 45,498
 Income from operations 16,261 10,537 41,528 33,992
 Other income (expense):
 Investment and other
 income, net 1,107 177 3,717 111
 Interest expense (104) (1,658) (460) (6,029)
 Equity in earnings
 of affiliate 456 411 1,636 411
 Income from continuing
 operations before provision
 for income taxes 17,720 9,467 46,421 28,485
 Provision for
 income taxes 6,869 3,812 18,055 13,062
 Income from continuing
 operations 10,851 5,655 28,366 15,423
 Discontinued operation:
 Loss from discontinued
 operation (net of tax
 benefit of $3,187,
 $1,076 and $5,181) --- (8,061) (2,468) (15,328)
 Gain on sale of BizMart
 (net of tax expense
 of $2,284) --- --- 6,298 ---
 Net income (loss) $10,851 $(2,406) $32,196 $95
 Income (loss) per common
 share and share equivalent:
 Continuing operations $.30 $.15 $.78 $.41
 Discontinued operation --- (0.21) (0.07) (0.41)
 Sale of BizMart --- --- 0.17 ---
 Net income (loss)
 per share .30 (.06) .88 .00
 Dividends declared
 per share .08 --- 2.16 ---
 Weighted average number of
 common shares and share
 equivalents outstanding:
 Primary and fully
 diluted 35,751 37,612 36,469 38,047
 INTELLIGENT ELECTRONICS, INC. AND SUBSIDIARIES
 Consolidated Balance Sheet
 (In thousands, except share-related data)
 Oct. 30, 1993 Jan. 30, 1993
 (Unaudited)
 Assets
 Current assets:
 Cash and cash equivalents $103,544 $52,498
 Marketable securities 100,650 ---
 Accounts receivable, net 16,822 8,410
 Inventory 228,338 196,857
 Prepaid expenses and other current assets 5,754 3,576
 Deferred income taxes 7,272 3,276
 Net assets of discontinued operation --- 261,173
 Total current assets 462,380 525,790
 Property and equipment 9,435 8,527
 Intangible assets, primarily
 goodwill, net 72,765 76,306
 Investments in affiliates 28,557 18,174
 Other assets 2,300 1,535
 Total assets $575,437 $630,332
 Liabilities and Shareholders' Equity
 Current liabilities:
 Current portion of long-term debt --- $17,619
 Accounts payable $342,075 304,045
 Accrued liabilities 25,196 26,746
 Total current liabilities 367,271 348,410
 Other liabilities 1,992 1,395
 Commitments and contingencies --- ---
 Shareholders' equity:
 Common stock $.01 par value per share:
 Authorized 100 million shares,
 issued and outstanding:
 38,858,804 and 36,961,154 shares 389 370
 Additional paid-in capital 214,355 196,742
 Treasury stock (57,181) (10,896)
 Retained earnings 48,611 94,311
 Total shareholders' equity 206,174 280,527
 Total liabilities and
 shareholders' equity $575,437 $630,332
 /delval/
 -0- 11/29/93
 /CONTACT: W. Evelyn Walker, VP, Investor Relations & Communications of Intelligent Electronics, 215-458-6668/
 (INEL)


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

MP-LJ -- PH003 -- 8096 11/29/93 07:36 EST
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Date:Nov 29, 1993
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