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 BAY SHORE, N.Y., Oct. 25 /PRNewswire/ -- Lumex, Inc. (AMEX: LUM) today reported results for the third quarter and nine months ended Sept. 30, 1993.
 Net income for the third quarter was $37,000, or $0.01 per share, compared with $1,140,000, or $0.26 per share, in the same period in 1992. Net sales were $26.3 million vs. $25.7 million in the prior year's third quarter.
 Net income for the first nine months of 1993 was $1,757,000, or $0.41 per share, compared with $2,658,000, or $0.61 per share, in the prior year. Net sales for the nine month period were $79.3 million, a gain of 7 percent from $74.2 million in 1992.
 As previously reported, the company's third quarter sales and earnings were impacted by a continued decline in domestic shipments of CYBEX rehabilitation products. The company experienced increased volume of CYBEX products for international and institutional fitness markets and strong sales of home medical equipment at its LUMEX division. Gross profit margins declined due to higher production costs at CYBEX's Owatonna, Minn., facility and increased sales of lower margin home care products at the LUMEX division. The company's earnings were also reduced by planned increases in product development spending at both divisions, as well as expenses incurred in establishing new business units at CYBEX for the consumer fitness market and at the LUMEX division for low air loss therapy products.
 Lawrence N. Cohen, chairman and chief executive officer of Lumex, Inc., stated, "As previously reported, we expect sales growth to improve in the fourth quarter based on a strong backlog of orders for CYBEX in the international and institutional fitness markets and contributions from new products at both the LUMEX and CYBEX divisions. At the same time, we are continuing to increase spending on product development, marketing, and enhanced manufacturing processes to strengthen our competitive position and capitalize on growth opportunities in our markets. While this will impact profits in the fourth quarter of this year, we expect substantial growth in 1994 as the benefits of these investments are realized."
 Lumex, Inc. is a leading manufacturer of products for the health care industry through its LUMEX and CYBEX Divisions, serving home health care, acute and long-term care, physical therapy/sports medicine and fitness market segments.
 Consolidated Summary of Operations
 (In thousands, except per-share data)
 Three months ended Sept. 30 1993 1992
 Net sales $26,328 $25,709
 Cost of sales 16,720 15,090
 Selling and admin. expenses 8,639 8,201
 Product development expenses 1,143 871
 Other (income) expenses (221) (128)
 Income before income taxes 47 1,675
 Income tax provision 10 535
 Net income 37 1,140
 Net income per share $.01 $.26
 Average shares 4,286 4,309
 Nine months ended Sept. 30 1993 1992
 Net sales $79,347 $74,183
 Cost of sales 48,232 43,507
 Selling and admin. expenses 25,663 24,634
 Product development expenses 3,560 2,552
 Other (income) expenses (725) (418)
 Income before income taxes 2,617 3,908
 Income tax provision 860 1,250
 Net income 1,757 2,658
 Net income per share $.41 $.61
 Average shares 4,286 4,340
 Consolidated Condensed Balance Sheets
 (Thousands of dollars)
 9/30/93 12/31/92
 Cash and
 temporary investments $8,955 $8,471
 Accounts receivable 20,838 20,002
 Inventories 14,774 14,588
 Other current assets 4,854 1,915
 Total current assets 49,421 44,976
 Property, plant and equipment, net 18,502 18,281
 Note receivable 2,123 2,101
 Intangible assets 2,045 2,109
 Other assets 3,988 1,570
 Total assets $76,079 $69,037
 Liabilities and Stockholders' Equity
 Accounts payable $7,356 $6,312
 Other current liabilities 8,081 7,801
 Total current liabilities 15,437 14,113
 Deferred income taxes 1,823 1,823
 Long-term debt 8,326 5,130
 Stockholders' equity 50,493 47,971(A)
 Total liabilities and
 stockholders' equity $76,079 $69,037
 (A) -- Restated for adoption of Financial Accounting Standards Board Statement No. 109, "Accounting for Income Taxes," increasing stockholders' equity by $560,000.
 -0- 10/25/93
 /CONTACT: June Filingeri or Bernie Kilkelly of Morgen-Walke Associates, 212-850-5600/

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

CK -- NY086 -- 6404 10/25/93 14:16 EDT
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Publication:PR Newswire
Date:Oct 25, 1993

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