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INTERMAGNETICS GENERAL CORPORATION FIRST QUARTER RESULTS

 GUILDERLAND, N.Y., Oct. 5 /PRNewswire/ -- Intermagnetics General Corporation (AMEX: IMG) today reported total revenues of $11,154,000 for the first quarter of fiscal year 1994 ending Aug. 29, 1993, compared to $13,529,000 for the equivalent period for the prior fiscal year. The company also reported the completion of a private placement and progress on its patent applications, events that occurred after the close of the quarter.
 Earnings, before accounting change, were $222,000 or $0.03 per primary share as compared to $1,080,000 or $0.14 per primary share last year, on 8.6 million now versus 7.7 million shares then. During the quarter, the company adopted the provisions of Statement of Financial Accounting Standards (SFAS) No. 109 "Accounting for Income Taxes." The effect of such adoption, which in accordance with the terms of the SFAS has been treated as the cumulative effect of a change in accounting method, was to record net deferred income tax assets of $888,000. This change increased reported net income to $1,110,000 or $0.13 per primary share.
 Commenting on the results, Carl H. Rosner, president and chief executive officer, explained, "Sales reflect the slowdown in the medical diagnostic imaging (MRI) market. Research and development expenses nearly doubled during the first quarter of fiscal 1994 due to programs in magnet and refrigerant development activities, which the company believes will establish new revenue streams. The company is developing a series of magnets over a range of field strengths which should enable it to increase its market share in the MRI field. The company is also devoting substantial resources to the development of the FRIGC(TM) environmentally friendly refrigerants. Income taxes have increased to essentially statutory rates in the current year, in contrast to the prior year which benefited from a net operating loss and investment credit carry forward as well as other deductions."
 He also noted, "The accompanying balance sheet as of Aug. 29, 1993, does not include the private placement, on Sept. 20, 1993, of $30,000,000 of the company's 5.75 percent convertible subordinated debentures which are convertible into common stock at $19.50 per share. This financing will provide funds for a building expansion and consolidation project, repaying existing indebtedness, new product development and a substantial increase in working capital."
 In other recent developments, the company announced that it has received a "Notice of Allowance" from the U.S. Patent Office, for certain patent claims covering the first group of the FRIGC family of environmentally friendly refrigerants, projected to replace CFC (Freon) based refrigerants. Rosner indicated, "We are gratified that our initial patent claims on FRIGC, targeted for use in specialized refrigeration applications, have been allowed. We have filed additional patent applications and expect to pursue further claims in the future. This initial patent coverage is an important step in our efforts to bring the benefits of FRIGC to market, since broad patent coverage is very desirable to achieve wide-ranging benefits from our developments and ongoing tests in this most important field."
 Intermagnetics General (AMEX: IMG) is a leader in superconductors and cryogenics. It manufactures superconducting magnets, wire and associated low temperature refrigeration equipment, the combination of which is especially useful in medical diagnostic imaging (MRI) systems. The company is dedicated to the development and commercialization of applied superconducting systems and also manufactures permanent magnet systems and material separation equipment.
 INTERMAGNETICS GENERAL CORPORATION
 Condensed Statements of Income
 (Dollars in Thousands, Except Per Share Amounts)
 (Unaudited)
 Three Months Ended
 Aug. 29, 1993 Aug. 30, 1992
 Net sales $11,008 $13,481
 Other revenue 146 48
 Total revenue 11,154 13,529
 Costs and expenses:
 Cost of products sold 7,168 9,183
 Product research and development 793 402
 Marketing, general and
 administrative 2,581 2,329
 Interest and other expense 250 247
 Total 10,792 12,161
 Income before income taxes and
 cumulative effect of change in
 accounting for income taxes 362 1,368
 Provision for income taxes 140 288
 Income before cumulative effect
 of accounting change 222 1,080
 Cumulative effect as of
 May 30, 1993 of change in
 method of accounting for
 income taxes 888 ---
 NET INCOME $ 1,110 $ 1,080
 Per share before cumulative
 effect of accounting change $.03 $.14
 Cumulative effect of accounting
 change .10 --
 PER SHARE $.13 $.14
 Primary shares 8,563,936 7,653,334
 NOTE: Primary shares and earnings per share have been adjusted to reflect a three percent stock dividend distributed Sept. 1, 1993.
 INTERMAGNETICS GENERAL CORPORATION
 Condensed Consolidated Balance Sheets
 (Dollars in Thousands)
 Aug. 29, 1993 May 30, 1993
 (Unaudited)
 ASSETS
 CURRENT ASSETS
 Cash and cash equivalents $ 1,319 $ 1,653
 Trade accounts receivable 10,350 9,373
 Cost and estimated earnings
 in excess of billings on
 uncompleted contracts 3,822 2,851
 Inventories 18,224 16,270
 Prepaid expenses and other 1,241 1,056
 TOTAL CURRENT ASSETS 34,956 31,203
 PROPERTY, PLANT AND EQUIPMENT, net 17,688 17,767
 INVESTMENT AND INTANGIBLE AND
 OTHER ASSETS 9,504 9,389
 TOTAL $62,148 $58,359
 LIABILITIES AND SHAREHOLDERS' EQUITY
 CURRENT LIABILITIES
 Current notes payable $ 2,353 ---
 Current portion of long-term debt 5,793 $ 5,810
 Accounts payable 1,708 2,163
 Salaries, wages and related items 1,317 1,379
 Customer advances and deposits 1,260 589
 Product warranty reserve 572 553
 Other liabilities and accrued
 expenses 321 1,110
 TOTAL CURRENT LIABILITIES 13,324 11,604
 LONG-TERM DEBT, less current
 portion 4,869 4,991
 SHAREHOLDERS' EQUITY 43,955 41,764
 TOTAL $62,148 $58,359
 -0- 10/5/93
 /CONTACT: Carl H. Rosner, president of Intermagnetics General, 518-456-5456; or Charles Constantine of William Dunk Partners, 214-960-9611, for Intermagnetics General/
 (IMG)


CO: Intermagnetics General ST: New York IN: CPR MTC SU: ERN

AR -- CL017 -- 8856 10/05/93 12:22 EDT
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Publication:PR Newswire
Date:Oct 5, 1993
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