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LOJACK ESTIMATES RECORDED REVENUES FOR FOURTH QUARTER AND FISCAL 1992; NET LOSSES CONTINUE SHARP DECREASES IN BOTH PERIODS

LOJACK ESTIMATES RECORDED REVENUES FOR FOURTH QUARTER AND FISCAL 1992;
 NET LOSSES CONTINUE SHARP DECREASES IN BOTH PERIODS
 NEEDHAM, Mass., March 25 /PRNewswire/ -- LoJack Corp. (NASDAQ: LOJN) announced today that it expects to report that revenues for the fourth quarter ended Feb. 29, 1992 (fiscal 1992) will exceed $4,300,000, compared to $3,384,431 a year ago, an increase of 27 percent. The net loss is expected to decrease by 30 percent, to $998,000, or 8 cents per share, from $1,420,393, or 12 cents per share a year ago. Operating losses before depreciation and amortization are expected to be reduced by 45 percent, to $422,000 in the fourth quarter of fiscal 1992 from $760,218 a year ago.
 The improvement in the company's operating results for the fourth quarter of fiscal 1992 is primarily the result of strong revenue growth in three of the company's markets (Los Angeles, South Florida and New Jersey) as well as the effects of cost containment and certain consolidation efforts instituted over the last year. In addition, interest expense will be reduced by 65 percent to $126,000 in the fourth quarter of 1992 from $359,228 a year ago as the result of the conversion on Dec. 15, 1991 or $12,165,000 of the company's convertible subordinated debentures into a like amount of the company's 10 percent convertible preferred stock.
 Results for the fourth quarter of fiscal 1992 were negatively impacted by previously planned research and development expenditures on the LoJack System by Motorola. In addition, the gross margin in the fourth quarter of 1991 was favorably impacted by volume discounts on inventory purchases which were not repeated in 1992.
 For the year ended Feb. 29, 1992, revenues are expected to increase by 25 percent to $17,500,000 from $14,056,166 a year earlier. The operating loss before depreciation and amortization are expected to improve by approximately $2,878,000 or 66 percent, to $1,463,000 from $4,340,971 a year ago. The net loss for the fiscal year is expected to decrease to approximately $4,650,000, or $.38 per share, from $6,362,080, or $.53 per share a year ago.
 In making the announcement, C. Michael Daley, president, stated that he was encouraged by the 27 percent increase in revenues for the fourth quarter especially since new car sales continued their two year decline, reported to have decreased slightly as compared to the same period in fiscal 1991. LoJack had a positive cash flow in three markets in the fourth quarter, Massachusetts, joined by Los Angeles and South Florida.
 "We expect all six of our present markets to have positive operating cash flows during this fiscal year. Based on present rates of sales growth and continued aggressive marketing we believe LoJack will have net profits in fiscal 1994," Daley said.
 "LoJack currently has agreements to expand to several new markets, including Georgia, Virginia and the Tampa, St. Petersburg and Orlando areas in Florida and also is negotiating with regulatory authorities to expand to several additional jurisdictions which are contiguous to existing operations. The economies of scale that would result from operations in contiguous areas will provide the opportunity for greatly enhanced earnings possibilities in fiscal 1994 and beyond. The timing for expansion, however, will be balanced with our overall objectives of achieving and maintaining profitability and financing using currently available resources," Daley said.
 "Based on the market penetration of new car sales and the profitability we experienced in Massachusetts, our first market, LoJack could experience significant increases in revenues and earnings by the expansion now contemplated because the targeted markets are larger than Massachusetts," Daley said.
 LoJack also announced today that it had developed a new application for its LoJack System. The new application, CarSearch, has been designed to function independently of law enforcement computers and telecommunications networks and procedures for use in smaller countries outside the United States where such networks and procedures are not sophisticated or where the demographics of the country do not justify the investment required for a fully integrated system. The CarSearch System is designed to be operated as a private security system.
 Daley said that the company was in discussions with several organizations concerning licenses to use CarSearch in small countries within the European Economic Community.
 -0- 3/25/92
 /CONTACT: Joseph F. Abely, senior vice president, of LoJack, 617-444-4900, or John Swanson of Swanson Communications, 212-683-4890, for LoJack/
 (LOJN) CO: LoJack Corp. ST: Massachusetts IN: SU: ERP


SM-OS -- NY054 -- 1614 03/25/92 15:19 EST
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Publication:PR Newswire
Date:Mar 25, 1992
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