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NETRIX ANNOUNCES THIRD QUARTER RESULTS

 HERNDON, Va., Oct. 21 /PRNewswire/ -- Netrix Corporation (NASDAQ-NMS: NTRX) today reported that in its third quarter ended Sept. 30, 1993, total revenue was $6,183,000, compared to $8,728,000 for the same period last year ?The company said that the decreased revenue resulted in a loss for the quarter of $1,532,000, or 18 cents per share, compared to net income of $732,000, or 12 cents per share, in the same quarter last year. Year-to-date revenue for 1993 was $14,467,000, with a loss of 83 cents per share, compared to revenue of $22,668,000 and income of 28 cents per share for the same period last year.
 Commenting on the results, Charles W. Stein, president and CEO of Netrix, said, "While we are not pleased to be reporting another loss, we are encouraged by improving results." He noted that revenue for the period grew by approximately 32 percent, compared to the previous quarter. "We hope to continue this trend of quarterly revenue growth, but we are not yet ready to predict when we will return to profitability. We are continuing our commitment to R&D to maintain our leadership position in the narrowband integrated voice and data network business," Stein continued.
 Stein said that the company's European market can still be described as "soft," but that efforts put in place earlier in the year are contributing to improved sales. He added that, during the third quarter, the company received orders for 11 new networks in the United States, the Pacific Rim, Europe, and Africa. Stein said that more than 20 existing customers also expanded their networks during th ?quarter, including SIP, the Italian telephone company.
 "Our order rate exceeded our shipments in the quarter, helping us to build our product backlog that we hope will translate into a more stable and predictable revenue stream. We have also been encouraged by market reaction to our newest products, the Voice/Fax Module (VFM) and the Branch/Router Concentrator (BRX), both of which enable our customers to reduce their expenses related to traffic coming from branch offices," Stein added.
 Netrix Corporation manufactures and markets products that are used to build narrowband (2 Mbps and below) integrated voice and data networks. Netrix' integrated networks minimize the significant communications costs associated with the narrowband market by enabling network managers to optimize their use of equipment and communication services. Netrix customers include financial services companies, other major corporations, public network operators, and government agencies around the world. Applications implemented on these networks include voice and fax communications, electronic mail, retail point-of-sale, LAN internetworking, and interbank transactions.
 Condensed Statements of Operations and Balance Sheets follows. release.
 NETRIX CORPORATION
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited)
 (In thousands, except per share amounts)
 Nine Months Ended Three Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Revenues:
 Product $ 11,745 $ 19,800 $ 5,244 $ 7,710
 Service 2,722 2,868 939 1,018
 Total revenues 14,467 22,668 6,183 8,728
 Cost of revenues:
 Product 5,692 7,794 2,783 3,175
 Service 2,411 1,607 839 594
 Total cost of
 revenues 8,103 9,401 3,622 3,769
 Gross profit 6,364 13,267 2,561 4,959
 Operating expenses:
 Sales and marketing 6,180 5,724 1,907 2,037
 Research and
 development 4,519 3,874 1,605 1,401
 General and
 administrative 2,174 1,871 656 734
 Income (loss) from
 operations (6,509) 1,798 (1,607) 787
 Settlement and litigation
 expenses 775 -- -- --
 Interest (income)
 expense, net (407) 25 (107) 22
 Income (loss) before
 income taxes (6,877) 1,773 (1,500) 765
 Provision for income taxes 35 70 32 33
 Net income (loss) $ (6,912) $ 1,703 $ (1,532) $ 732
 Earnings (loss) per
 share $ (0.83) $ 0.28 $ (0.18) $ 0.12
 Weighted average
 number of shares
 outstanding 8,300 6,153 8,327 6,333
 NETRIX CORPORATION
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (In thousands, except share amounts)
 Sept. 30, Dec. 31,
 1993 1992
 (Unaudited)
 ASSETS
 Current assets:
 Cash and cash equivalents $1?0,760 $ 7,535 ? Short-te rm
nvestments 5,000 16,977
 Accounts receivable, net 7,095 12,055
 Inventories 7,341 4,608
 Other current assets 1,161 343
 Total current assets 31,357 41,518
 Property and equipment, net 5,308 4,909
 Deposits and other assets 1,612 403
 Total $ 38,277 $ 46,830
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $ 1,258 $ 2,425
 Accrued liabilities 3,914 3,782
 Current portion of capital
 lease obligations 662 768
 Total current liabilities 5,834 6,975
 Capital lease obligations, net of
 current portion 523 1,048
 Deferred rent, net of current portion 1,073 1,192
 Total 7,430 9,215
 Stockholders' equity:
 Preferred stock, $0.05 par value;
 1,000,000 shares authorized;
 none issued and outstanding -- --
 Common stock, $0.05 par value;
 15,000,000 shares authorized;
 8,355,397 and 8,265,233 shares
 issued and outstanding at
 September 30, 1993 and December
 31, 1992, respectively 418 413
 Additional paid-in capital 50,352 50,213
 Accumulated deficit (19,923) (13,011)
 Total stockholders' equity 30,847 37,615
 Total $ 38,277 $ 46,830
 -0- 10/21/93
 /CONTACT: Ellen Jennings, director, marketing communications, 703-793-2016, or Louann Curlin, manager, treasury services, 703-793-2051, both of Netrix/
 (NTRX)


CO: Netrix Corporation ST: Virginia IN: CPR SU: ERN

DC-KD -- DC051 -- 5409 10/21/93 16:06 EDT
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Date:Oct 21, 1993
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