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OPTICAL DATA SYSTEMS ESTIMATES THAT THIRD QUARTER NET INCOME AND SALES WILL BE DOWN FROM THE SECOND QUARTER

 RICHARDSON, Texas, Sept. 8 /PRNewswire/ -- Optical Data Systems, Inc. (NASDAQ-NMS: ODSI), a leading Local Area Network (LAN) intelligent hub manufacturer, reported today that ODS estimates that third quarter net income may be down 30 percent and sales may be down 10 percent from the second quarter 1993 levels.
 "New major customer sales have been coming in slower than expected during the third quarter," said G. Ward Paxton, president and CEO. Also European sales have been very slow during the third quarter, Paxton continued.
 Even though the new Infinity Series of intelligent hubs continues to receive high acceptance from customers with very large and complex networks, the long sales cycle time for these customers has contributed to the delays in sales growth for ODS. Since there exists a six to twelve month delay from demonstration of a new product until procurement by a new major customer, the significant impact of the Infinity Series toward sales growth is expected toward the end of 1993 and in 1994.
 Infinity Series sales are just beginning in Europe. ODS continues to improve the European sales thrust and to increase the focus on large European customers.
 Robert Goldney joined ODS as European sales manager on Sept. 1, 1993. Goldney is responsible for all European sales with all European sales personnel reporting to him. Goldney reports directly to G. Ward Paxton. In addition ODS is in the process of establishing a sales office near London.
 Dallas-based Optical Data Systems, Inc. (ODS) provides connectivity products for diverse enterprise networking environments with one of the industry's broadest product lines of Ethernet, Token Ring, FDDI (Fiber Distributed Data Interface) and ATM (Asynchronous Transfer Mode) intelligent hubs. ODS announced the Infinity Hub product line in January, 1993. The Infinity Hub has many advanced features, including port switching, high density modules, superior RMON based network management, and seamless integration of multiple networking standards (Ethernet, Token Ring, FDDI and ATM). The Infinity was designed to optimally support integration of the finest third party internetworking components so that ODS customers may continually upgrade their networks without replacement of the installed base of hubs. ODS is located at 1101 East Arapaho Road, Richardson, Texas 75081 and can be reached at 214-234-6400.
 -0- 9/8/93 R
 /CONTACT: G. Ward Paxton, president and CEO of Optical Data Systems, 214-234-6400/
 (ODSI)


CO: Optical Data Systems, Inc. ST: Texas IN: CPR SU: ERP 401 EDT LD -- NY084 -- 0223 09/09/93 10:20 EDT
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Publication:PR Newswire
Date:Sep 9, 1993
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