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MARKET SOFTNESS WILL REDUCE TRICONEX THIRD-QUARTER, FULL-YEAR REVENUES BELOW COMPANY EXPECTATIONS

 MARKET SOFTNESS WILL REDUCE TRICONEX THIRD-QUARTER,
 FULL-YEAR REVENUES BELOW COMPANY EXPECTATIONS
 Record 1992 Year Still Expected
 IRVINE, Calif. June 3 /PRNewswire/ -- William K. Barkovitz, president and chief executive officer of Triconex Corp. (NASDAQ: TCNX) reported today that recent deferrals in purchasing decisions on certain of the company's fault-tolerant safety and control systems will reduce third quarter results below originally anticipated expectations.
 Barkovitz commenting on the development said "Continued pressure on profitability within the energy industries, a principal customer group of the company, as well as the lingering effect of the recession in America, has delayed the anticipated signing or release of a number of active projects. Such delays will impact the current growth rate of the company, primarily in the third quarter of 1992 and therefore, the full year of 1992.
 "In spite of these delays we continue to anticipate an excellent year of growth, with expected 1992 revenue increasing in the 25-30 percent range, and earnings per share growing over 1991 by 20-25 percent in spite of an increased number of shares outstanding due to the company's recent initial public offering" said Barkovitz.
 Barkovitz noted that the company was losing a minimal number of contracts to competitors, with the more significant factor in this recent development being delays in purchasing commitments.
 "The company's pipeline of active projects being pursued is the largest in its history," said Barkovitz. "We anticipate that if there is a continuation of the economic recovery in the U.S., and with the continued growth in the company's Asia Pacific and Middle East activites, the level of released contracts may be higher than anticipated in the last part of 1992 and the first half of 1993," he said.
 Barkovitz said that the company's overall long-term growth prospects remain positive and generally unchanged. "By pursuing substantial contracts for major worldwide customers, we can expect certain quarterly fluctuations in operating results based upon, among other things, the timing of large new orders," he said.
 Most recently, the company reported record 1992 first quarter revenues of $7,008,000 with net income of $928,000 or $.25 per share on 3.74 million shares outstanding compared with 1991 first quarter revenues of $4,033,000 and net income of $361,000 and $.11 per share on 3.34 million shares outstanding.
 In March 1992 the company completed its initial public offering of common stock in an underwriting led by Smith Barney, Harris Upham & Co. and Hambrecht & Quist. In the offering 2,300,000 shares of common stock were sold at $13, of which 1,437,500 were sold by the company and 862,500 by selling shareholders. Net proceeds available to the company were approximately $17 million.
 Triconex is a worldwide leader in the development of fault-tolerant triple modular redundant (TMR) safety and control systems used in critical industrial process applications, principally in the chemical, refining, oil and gas production and electric utilities industries. The company's proprietary systems are used to control a variety of high-risk safety applications, such as emergency shutdown systems, burner management systems, fire and gas monitoring systems and turbine control systems. TMR systems eliminate single points of failure, providing system reliability many times greater than that of non-redundant or dual-redundant systems at a competitive cost over the life of the system. The company has an installed base of more than 500 systems at more than 100 plant sites in 29 countries throughout North and South America, Europe, Australia, Asia and Africa. Triconex distributes its safety and control systems both domestically and internationally through its own direct sales force and through numerous distribution arrangements, including a worldwide distribution agreement with Honeywell, one of the world's leading suppliers of process control systems.
 Triconex's customers include many major chemical companies, such as Dow, DuPont, Elf Aquitaine, Hoechst Celanese and Union Carbide, as well as many of the largest petroleum exploration and refining companies, including Chevron, Exxon, Mobil, Royal Dutch Shell and Saudi Aramco.
 -0- 6/3/92
 /CONTACT: Charles W. McBrayer, CFO of Triconex, 714-768-3709; or William F. Coffin or Tom Wick of the Financial Relations Board, 818-783-2400, for Triconex/
 (TCNX) CO: Triconex Corp. ST: California IN: CHM SU: ERP


EH -- LA024 -- 6661 06/03/92 14:53 EDT
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Publication:PR Newswire
Date:Jun 3, 1992
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