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MICRONICS COMPUTERS INC. ISSUES FIRST QUARTER FINANCIAL RESULTS

MICRONICS COMPUTERS INC. ISSUES FIRST QUARTER FINANCIAL RESULTS
 FREMONT, Calif., Jan. 22 /PRNewswire/ -- Micronics Computers Inc. (NASDAQ: MCRN) reported its first fiscal quarter's results today. Net sales reached $38 million for the quarter, up 41 percent from the first quarter of 1991. Net income in the period was $2,842,000 or $0.26 per share compared to $1,795,000 or $0.21 per share in the prior year's first fiscal quarter. The net income represents a 58 percent increase over the same period in the prior year. During the second half of fiscal 1991 the company issued 2,600,000 shares in an initial public offering which increased the outstanding shares by 23 percent. Micronics has now reported 21 straight quarters of profitable operations.
 The company attributed its success to its ability to maintain close relationships with leading suppliers of personal computers in the fast-growing direct marketing channel for IBM compatible systems. They also pointed out that cost reductions kept pace with lower average selling prices during the quarter and the company benefitted from a continuing shift in its product mix to the higher end of the product line.
 President Frank Lin, stated that "We are gratified by the results of our first quarter and especially by our success in an industry that in general has not grown over the last year. It once again demonstrates the wisdom of our long-term strategy to stay at the high end of performance in the personal computer field where our reputation for quality engineering and production as well as our quick time to market are well appreciated." He went on to note that while the company has continued to benefit from its relationship as a leading supplier to Gateway 2000 it must prove itself with each new product offering. "Gateway is currently evaluating our board against designs by other suppliers," he said. "Our ability to maintain our current position with them will depend upon our supplying equivalent products at competitive prices." The company's sales to Gateway comprised 50 percent of total first quarter revenue.
 Micronics Computers is a leading supplier of high-performance system boards incorporated in high-end, IBM compatible personal computers sold by OEMs and VARs. A system board contains the microprocessor and supporting logic circuitry and memory components that form the core of the personal computer. The company sells primarily to direct marketers and other marketing oriented personal computer vendors.
 MICRONICS COMPUTERS INC.
 CONDENSED STATEMENT OF OPERATIONS
 (in thousands, except per share data)
 Three Months Ended
 Dec. 31,
 1990 1991
 Net Sales $26,954 $37,974
 Gross Profit 6,578 9,144
 Income from Operations 2,748 4,403
 Net Income 1,795 2,842
 Net Income Per Share $ 0.21 $ 0.26
 -0- 1/22/92
 /CONTACT: Steven R. Wade of Micronics, 510-651-2300/
 (MCRN) CO: Micronics ST: California IN: CPR SU: ERN


RM -- SJ007 -- 2275 01/22/92 12:02 EST
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Publication:PR Newswire
Date:Jan 22, 1992
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