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OMNI REORGANIZES

 HOUSTON, Feb. 19 /PRNewswire/ -- Omni USA Inc. ("OMNI") (NASDAQ: OUSA) announced sales and earnings for the three- and six- month periods ended Dec. 31, 1992. The company had net sales of $2,184,108 for the second quarter, down from $2,836,201 for the same period in fiscal year 1992. A net loss was reported for the period of ($797,875) or ($.841) per common share on 1,000,000 shares outstanding, compared with ($206,857) or ($.220) per share of loss one year ago.
 For the six-month period ended Dec. 31, 1992, net sales were $5,203,651, compared to $5,806,398 one year ago. Net losses of ($1,146,582) or ($1.217) per share and ($245,120) or ($.258) per share were reported for the same six-month periods, respectively.
 The operating losses for both the three- and six-month periods ended Dec. 31, 1992, were attributed to excessive overhead carried by the company in order to develop and bring new product lines to market. Significantly increased wage expense, general liability insurance and outside professional services relating to legal, advertising and computer services all contributed to the increase from the prior year.
 A reorganization of the company began in November 1992. The company moved its corporate headquarters from Del Mar, Calif., to Houston, consolidating into an existing facility, and made substantial workforce reductions. The actions resulted in expense of approximately $70,000 included in the second quarter's results. Additionally, the company sold the assets of its unprofitable cargo control product line and wrote-down its investment in the home fitness center product because of lack of capital to resume marketing and production, resulting in second quarter charges of $188,000.
 The company's chairman and chief executive officer, Edward L. Daniel, said the company will no longer pursue certain product lines that were draining the company's cash and that management has developed an aggressive reorganization plan to return the company to profitability by focusing on its core gear products.
 This reorganization may entail further write-offs. Meanwhile, the company continues to pursue funding alternatives to secure its ongoing operations.
 Omni manufactures gear products, towing components and other specialized metal equipment for industry and agriculture.
 OMNI USA INC.
 Consolidated Results
 For the Three and Six Months Ended Dec. 31, 1992
 (Dollars in thousands)
 (Unaudited)
 Three months ended Six months ended
 Dec. 31, Dec. 31,
 1992 1991 1992 1991
 Revenues $2,184 $2,836 $5,204 $5,806
 Net loss (798) (207) (1,147) (245)
 Loss per share (.841) (.220) (1.217) (.258)
 Shares outstanding
 (after 1-for-15
 reverse split) 1,000,000
 -0- 2/19/93
 /CONTACT: Craig Daniel of Omni USA, 713-635-6331/
 (OUSA)


CO: Omni USA Inc. ST: Texas, California IN: SU: ERN RCN

JL-LS -- SD006 -- 8628 02/19/93 21:00 EST
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Publication:PR Newswire
Date:Feb 19, 1993
Words:462
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