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NORAND REPORTS THIRD QUARTER FISCAL 1993 RESULTS

 CEDAR RAPIDS, Iowa, June 14 /PRNewswire/ -- Norand Corporation (NASDAQ: NRND), a designer, manufacturer and marketer of portable, computerized route accounting and wireless data communication systems, today reported results for the third quarter ended May 29, 1993.
 The company reported continued growth in revenues and earnings. Revenues of $38.7 million for the third fiscal quarter were up 36.5 percent from revenues of $28.4 million for the comparable period in fiscal 1992. Income from operations increased 85.6 percent to $3.3 million from $1.8 million for the same period in 1992. Net income was $2.7 million, $0.37 primary and $0.36 fully diluted per share, for the quarter ended May 29, 1993. This compares to a profit of $0.6 million, $0.15 primary and $0.05 fully diluted per share, in the corresponding period in fiscal 1992.
 For the nine month period ended May 29, revenues were up 40.1 percent to $105.8 million and operating income increased $4.2 million to $6.2 million. Net income increased $4.1 million to $2.3 million or $0.47 fully diluted per share.
 Key events during the third quarter included the commercial release of an advanced wireless data communication network that incorporates spread spectrum technology and successful completion of negotiations for the purchase of Tandy's Micronic/Parcon organization in Europe. Norand announced the finalization of this acquisition on June 7.
 In addition, Norand announced major contracts to supply route automation systems to Continental Baking, the nation's largest wholesale baker; and Cervecaria Cuauhtemoc Moctezuma, an operating group of Fomento Economico Mexicano S.A. (FEMSA). Both contracts involve roll- out schedules extending well into the next fiscal year.
 Several important partnerships were announced this quarter, including interface capabilities with ASK Computer Systems, an expanded distribution relationship with IBM, and a joint marketing partnership with Marcam Corporation.
 N. Robert Hammer, president and CEO, stated: "We are pleased with this performance as we continue to outpace industry growth in both revenue and earnings. We will continue our efforts to enhance our globalization and strengthen our position in our core technologies."
 Norand designs, manufactures, and markets portable, computerized systems used to automate the collection, processing, and communication of information related to product sales and distribution, inventory control and warehouse data management. Norand systems include wireless data communication networks, applications-specific software, hand-held computers, portable printers, bar code scanning devices, and related peripheral equipment. Norand maintains its corporate headquarters at 550 Second Street Southeast in Cedar Rapids.
 NORAND CORPORATION
 CONSOLIDATED BALANCE SHEETS
 (Dollars in thousands, except per share amounts)
 ASSETS
 5/29/93 8/31/92
 Current assets: (unaudited)
 Cash and marketable securities $1,187 $1,116
 Accounts receivable, net of allowances
 for doubtful accounts and estimated
 sales returns of $921 (1992) and
 $1,149 (May 1993, unaudited) 46,865 37,536
 Inventories 14,260 16,063
 Prepaid expenses 1,306 1,369
 Total current assets 63,618 56,084
 Noncurrent assets:
 Property, plant and equipment, net 13,102 13,655
 Patents and intellectual
 properties, net 4,104 3,749
 Goodwill, net 1,850 1,889
 Other noncurrent assets 2,580 1,271
 Total assets $85,254 $76,648
 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
 Current liabilities:
 Short-term debt 11,200 14,524
 Current portion of long-term debt -- 4,725
 Accounts payable 13,437 11,255
 Accrued payroll and employee benefits 7,003 6,152
 Other accrued liabilities 4,136 9,309
 Deferred income 4,964 4,826
 Total current liabilities 40,740 50,791
 Long-term debt, net of current portion -- 24,046
 Preferred stock - Series A, par value
 $.001, $100 redemption value per share
 (liquidation value $16,000), 160,000
 shares authorized, and 160,000 shares
 issued and outstanding (1992) -- 15,534
 Preferred stock - Series B, par value
 $.001, $10 redemption value per share
 (liquidation value $10,135), 1,100,000
 shares authorized and 1,013,500 shares
 issued and outstanding (1992) -- 10,135
 Commitments and contingencies
 Stockholders' equity (deficit):
 Common stock, $.01 par value per
 share, 15,000,000 shares authorized
 and 587,905 (1992), and 6,920,635
 (May 1993, unaudited) shares
 issued and outstanding 69 6
 Additional paid-in capital 68,481 643
 Accumulated deficit (23,053) (24,577)
 Equity adjustment from foreign
 currency translation (983) 70
 Total stockholder's equity (deficit) 44,514 (23,858)
 Total liabilities and stockholders'
 equity (deficit) $85,254 $76,648
 NORAND CORPORATION
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (Dollars in thousands, except per share amounts)
 (Unaudited)
 Three Months Ended Nine Months Ended
 5/29/93 5/30/92 5/29/93 5/30/92
 Revenues:
 Product sales revenue $31,744 $22,355 $85,967 $58,233
 Customer service revenue 6,999 6,029 19,866 17,305
 Total revenues 38,743 28,384 105,833 75,538
 Cost of products and services 21,263 13,861 57,785 38,072
 Gross profit 17,480 14,523 48,048 37,466
 Operating expenses:
 Product development and
 engineering expenses 4,197 2,776 11,556 8,737
 Selling expenses 7,150 7,324 22,264 19,801
 General and administrative
 expenses 2,812 2,634 8,075 7,020
 Total operating expenses 14,159 12,734 41,895 35,558
 Income from operations 3,321 1,789 6,153 1,908
 Interest expense 231 1,201 2,746 3,649
 Non-recurring short-term
 financing costs -- -- 378 --
 Income (loss) before
 income taxes 3,090 588 3,029 (1,741)
 Provision for income taxes 379 4 461 67
 Net income (loss) before
 extraordinary item 2,711 584 2,568 (1,808)
 Extraordinary loss on early
 extinguishment of debt -- -- 310 --
 Net income (loss) $2,711 $584 $2,258 $(1,808)
 Series A preferred
 dividends and accretion -- 412 734 1,228
 Gain on redemption of Series A
 preferred stock -- -- (867) --
 Net income (loss) to common
 shareholders $2,711 $172 $2,391 $(3,036)
 Per common and common
 equivalent share:
 Net income (loss) before
 extraordinary item
 Primary $.37 $.15 $.71 $(4.44)
 Fully diluted .36 .05 .53 (4.44)
 Net income (loss)
 Primary $.37 $.15 $.62 $(4.44)
 Fully diluted $.36 $.05 $.47 $(4.44)
 Average number of common and
 common equivalent shares
 outstanding:
 Primary 7,421,651 1,129,211 3,827,539 683,356
 Fully diluted 7,437,773 3,439,619 5,138,020 683,356
 -0- 6/14/93 R
 /CONTACT: Beth Colwell, investor relations of Norand, 319-369-3115/
 (NRND)


CO: Norand Corporation ST: Iowa IN: CPR SU: ERN

AL -- MN099 -- 1978 06/15/93 09:25 EDT
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Date:Jun 15, 1993
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