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LUMEX, INC. REPORTS SECOND QUARTER AND SIX MONTHS RESULTS; CYBEX DIVISION APPOINTS NEW HEAD OF CONSUMER FITNESS BUSINESS

 BAY SHORE, N.Y., July 22 /PRNewswire/ -- Lumex, Inc. (AMEX: LUM) today reported results for the second quarter and six months ended June 30, 1993.
 Net income for the second quarter was $699,000, or $0.16 per share, compared with $692,000, or $0.16 per share, in the same period in 1992. Net sales were $26.1 million, an increase of 10.2 percent from $23.7 million in the prior year's second quarter.
 Net income for the first six months of 1993 was $1,720,000, or $0.40 per share, a 13.3 percent increase from $1,518,000, or $0.35 per share, in the prior year. Net sales for the six month period rose 9.4 percent to $53.0 million, compared with $48.5 million in 1992.
 The company's second quarter net income was affected by a shortfall in shipments of Cybex products into the continued weak rehabilitation market as well as by lower than expected shipments of high margin products at the LUMEX division, primarily due to a shift of a major customer's order into the second half of the year. In addition, gross margins at the CYBEX division decreased due to temporarily high production costs at CYBEX's Owatonna, Minnesota facility as it revamps certain manufacturing processes to increase throughput. CYBEX continued to achieve strong growth in sales and market share of CYBEX Strength Systems and THE BIKE in the institutional fitness and international markets.
 Lawrence N. Cohen, chairman and chief executive officer of Lumex, Inc., stated, "The sales growth we achieved in the second quarter was not reflected in our earnings performance due to a number of factors which the company is actively addressing. Our profitability at the LUMEX division was affected by a temporary shift in product mix toward lower margin product categories. We expect sales and earnings from this division to accelerate growth trends in the third quarter as we receive greater contributions from our higher margin pressure sore management and low air loss product categories. At the CYBEX division, we are taking steps to reduce production costs at our Owatonna facility while continuing to improve our manufacturing processes. While CYBEX's performance is being impacted, as expected, by soft demand in its rehabilitation market, we expect to more than make up for the weakness in this market with strong growth in the institutional fitness, international and consumer fitness markets."
 Lumex also announced that Kelley A. Timmins has been appointed vice president, Consumer Business at CYBEX. Mr. Timmins, 40, most recently served as President of Tunturi, a leading manufacturer of exercise products and accessories based in Redmond, Washington. Mr. Timmins will be based in Seattle, Washington. CYBEX is planning to begin shipments of the CYBEX Personal Strength System, its initial entry into the home fitness market, in the third quarter.
 Mr. Cohen concluded, "We are continuing to increase product development efforts in our core product categories at the LUMEX division to meet customer demand for economy-priced products and at CYBEX to expand our cardiovascular equipment product line. CYBEX will begin shipments of a semi-recumbent exercise cycle and an institutional treadmill in the third quarter. With further expansion of our leading market positions and contributions from new products, we expect continued improvement in our sales growth rate and a return to normal levels of profitability in the second half of 1993."
 Lumex, Inc. is a leading manufacturer of products for the health care industry through its LUMEX and CYBEX Divisions, serving extended care, home health care, physical therapy/sports medicine and fitness market segments.
 LUMEX, INC.
 Consolidated Summary of Operations
 (in thousands, except per share data)
 Periods ended June 30 Three Months
 Pct. Increase
 1993 1992 (Decrease)
 Net sales $26,125 $23,708 10.2
 Cost of sales 15,873 13,909 14.1
 Selling and administrative
 expenses 8,248 8,127 1.5
 Product development expenses 1,268 840 51.0
 Other (income) expenses (263) (149)
 Income before income taxes 999 981 1.8
 Income tax provision 300 289
 Net income $ 699 $ 692 1.0
 Net income per share $ .16 $ .16
 Average shares 4,295 4,342
 Periods ended June 30 Six Months
 Pct. Increase
 1993 1992 (Decrease)
 Net sales $53,019 $48,474 9.4
 Cost of sales 31,512 28,417 10.9
 Selling and administrative
 expenses 17,024 16,433 3.6
 Product development expenses 2,417 1,681 43.8
 Other (income) expenses (504) (290)
 Income before income taxes 2,570 2,233 15.1
 Income tax provision 850 715
 Net income $ 1,720 $ 1,518 13.3
 Net income per share $ .40 $ .35
 Average shares 4,287 4,356
 LUMEX, INC.
 Consolidated Condensed Balance Sheets
 (Thousands of Dollars)
 June 30, December 31,
 1993 1992
 ASSETS
 Cash and
 Temporary investments $ 5,493 $ 8,471
 Accounts receivable 18,630 20,002
 Inventories 15,779 14,588
 Other current assets 4,520 1,998
 Total Current Assets 44,422 45,059
 Property, plant and equipment,net 18,161 18,281
 Note receivable 2,110 2,101
 Intangible assets 2,008 2,109
 Other assets 3,325 1,796
 Total Assets $70,026 $69,346
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Accounts payable $ 6,810 $ 6,312
 Other current liabilities 6,853 8,110
 Total current liabilities 13,663 14,422
 Deferred income taxes 1,823 1,823
 Long-term debt 4,325 5,130
 Stockholders' equity 50,215 47,971(a)
 Total liabilities and
 stockholders' equity $70,026 $69,346
 NOTE: (a) Restated for adoption of Financial Accounting Standards Board Statement No. 109, "Accounting for Income Taxes," increasing stockholders' equity by $560,000.
 -0- 7/22/93
 /CONTACT: June Filingeri or Bernie Kilkelly, both of Morgen-Walke Associates, 212-850-5600, for Lumex, Inc./
 (LUM)


CO: Lumex, Inc. ST: New York IN: HEA SU: ERN

TM -- NY092 -- 4732 07/22/93 16:12 EDT
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Date:Jul 22, 1993
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