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MERISEL REPORTS EARNINGS OF 12 CENTS PER SHARE; ACHIEVES RECORD SALES IN THIRD QUARTER

 MERISEL REPORTS EARNINGS OF 12 CENTS PER SHARE;
 ACHIEVES RECORD SALES IN THIRD QUARTER
 EL SEGUNDO, Calif., Oct. 26 /PRNewswire/ -- Merisel Inc. (NASDAQ: MSEL) today reported record quarterly sales of $554,250,000 for the quarter ended Sept. 30, 1992. This represents revenue growth of 42 percent over sales of $389,122,000 for the same period in 1991, and 8 percent over sales of $512,735,000 in the second quarter of 1992. Net sales for the nine months ended Sept. 30, 1992, increased to $1,554,087,000 up 39 percent from the same period in 1991.
 Net income for third quarter of 1992 was $3,535,000 up from $3,003,000 in the third quarter of 1991. Earnings per share were $.12 for both periods, reflecting the issuance of additional shares in the company's March 1992 stock offering. Net income for the nine months ended Sept. 30, 1992, increased to $12,118,000, or $.42 per share, more than double that of the same period in 1991.
 "We are extremely pleased with our strong sales growth as we once again achieved a record sales quarter for the third consecutive time this year," said Merisel President and Chief Executive Officer Michael D. Pickett. "As anticipated, we continued to experience difficulties in France and Switzerland. Due to the summer holiday season, the third quarter is traditionally a slower sales quarter in Europe. This, coupled with declining gross margins, a slower economic environment and intense competitive pressure, impacted our overall performance. We have put measures in place to continue to more effectively compete during what appears to be an industry shake- out in Europe by restructuring our French operation and making adjustments to turn around our Swiss subsidiary. We have also continued to add some of the industry's leading manufacturers in various markets in Europe."
 Some key product distribution agreements that were recently signed include: Hewlett-Packard's systems and laser printers in France, Compaq's complete product line in Mexico and Germany; IBM PS/1 systems and Conner Peripheral drives in Mexico; Commodore and Zenith systems and Lexmark printers in Canada; and in the United States, Grid Systems' pen-based and portable products, Digital's complete PC line and Apple's system software. In addition to these contracts, the company increased its U.S. product offering in the third quarter in the categories of Windows, entertainment and education software, storage products, connectivity products and accessories.
 "As gross margins continue to decline, we are focusing more and more on lowering costs as a percentage of sales. This quarter, our operating expenses as a percentage of sales decreased to 6.7 percent from 7.3 percent during the same period last year," said Senior Vice President of Finance and Chief Financial Officer James Brill. "We continue to maintain our focus on asset management and are pleased with our progress."
 MERISEL INC. AND SUBSIDIARIES
 Summary of Operating Results
 (In thousands except per share amounts)
 Three Months Ended Nine Months Ended
 9/30/92 9/30/91 9/30/92 9/30/91
 Net sales $554,250 $389,122 $1,554,087 $1,118,575
 Gross profit 47,749 37,782 142,110 110,142
 Income before tax 6,298 5,253 21,117 9,476
 Net income 3,535 3,003 12,118 5,003
 Net income per share .12 .12 .42 .20
 Weighted average shares
 outstanding 30,164 25,086 28,931 24,985
 Merisel is the world's largest publicly held distributor of microcomputer hardware and software products. The company presently stocks products from more than 700 manufacturers for sale to 65,000 resellers worldwide. Merisel currently maintains 23 distribution centers that serve North America, Europe, Latin America, the Caribbean and Australia. It sells more than 20,000 products worldwide, and offers a wide range of services to support resellers with the sales of these products.
 -0- 10/26/92
 /CONTACT: James Brill, CFO, 310-615-1259, or Cathy Quattrocchi, manager of corporate communications, 310-615-1230, both of Merisel/
 (MSEL) CO: Merisel Inc. ST: California IN: CPR SU: ERN


JL-JB -- LA017 -- 4577 10/26/92 09:01 EST
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Publication:PR Newswire
Date:Oct 26, 1992
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