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PACIFIC SCIENTIFIC REPORTS FIRST QUARTER EARNINGS

 PACIFIC SCIENTIFIC REPORTS FIRST QUARTER EARNINGS
 EPS Climbs By 54 Percent; All Divisions Profitable;
 Order Rates Strong
 NEWPORT BEACH, Calif., April 20 /PRNewswire/ -- Pacific Scientific Co. (NYSE: PSX) today reported sales for its first quarter ended March 27, 1992, of $41.0 million with net income of $1.1 million or 20 cents per share. This compares with 1991 first quarter sales of $44.0 million (including sales from a now-divested operation) with net income of $766,000 or 13 cents per share. According to the announcement made by Chairman, President and Chief Executive Officer Edgar S. Brower, net income for the quarter rose 45 percent and earnings per share improved by 54 percent, although revenue declined 2 percent after giving effect to the divestiture. Brower said that all of the company's divisions were profitable for the period and that order rates had escalated substantially in some areas over the previous year.
 Commenting on the results, Brower said: "We were pleased with the first quarter results and, assuming the economy continues to improve, we expect that Pacific Scientific will experience increasing earnings throughout 1992. We are clearly on an upward trend toward achieving our strategic plans by making Pacific Scientific increasingly profitable and successful."
 Brower emphasized that "the improvement in both gross margin and operating income is a reflection of productivity improvements achieved by world class manufacturing techniques and a 'right-sizing' of the company. We have challenged ourselves to improve productivity even further by working smarter. Our progress is evidenced by an 8 percent quarter-to-quarter productivity increase; revenue per employee stood at an annualized rate of $119,000 for the first quarter, compared to $110,000 last year."
 Order rates for electrical equipment were up 21 percent over the prior year, with all divisions participating in the increase. Particularly encouraging were order rates for motors, generators and alternators which surged 29 percent from the prior year.
 Brower said that the Fisher Pierce division has continued to produce modest profit for the past two quarters, as compared to losses in the prior year. He said that automated equipment is now being installed to produce the new line of Fisher Pierce patented outdoor lighting controls (OLCs). The new OLC line is expected to further increase Pacific Scientific's competitive leadership.
 The company's balance sheet remains strong. The current ratio at the end of the first quarter was 2.3:1 vs. 2.1:1 in the prior year. Debt less cash was $30 million vs. $40 million in the prior year, with the average cost of borrowing declining by nearly 2 percent.
 The company has, over time, been repurchasing its outstanding Series B Preferred shares to reduce overall cost of capital. This repurchasing caused earnings per share for the quarter to increase at a slightly faster pace than net income when compared to the previous year. After the close of the quarter, all remaining outstanding Series B Preferred stock was "called," consequently eliminating future dividends on these shares.
 Brower added: "All expenditures for capital and R&D are being prioritized to achieve the best mix of cash flow and earnings."
 Backlog of orders at the end of the first quarter was $80 million vs. $83 million in the prior year. Both backlog figures exclude the divested operation. Brower pointed out that in many instances, delivery cycles have been shortened from months to days and customers now tend to place orders at a point in time nearest to their requirements, making backlog a less reliable predictor of future business than in past years.
 Pacific Scientific designs, manufactures and markets technology- based proprietary products. The principal markets served include factory and office automation, commercial and military aircraft, electrical utilities, semiconductor manufacturers and pharmaceutical companies.
 PACIFIC SCIENTIFIC CO. AND SUBSIDIARIES
 Consolidated Statements of Operations
 Quarter Ended
 March 27, March 29,
 1992 1991
 Sales:
 Electrical equipment $26,457,000 $27,453,000
 Aircraft safety equipment 14,526,000 16,533,000
 Total sales 40,983,000 43,986,000
 Cost of sales 28,109,000 30,894,000
 Gross profit 12,874,000 13,092,000
 Selling and administration 8,890,000 9,001,000
 Research & development 1,999,000 2,296,000
 Operating income 1,985,000 1,795,000
 Interest & other (net) (276,000) (539,000)
 Income before income taxes 1,709,000 1,256,000
 Income taxes 598,000 490,000
 Net income $1,111,000 $766,000
 Earnings per common and
 common equivalent share $0.20 $0.13
 Average common and common
 equivalent shares outstanding 5,336,000 5,331,000
 Notes:
 1) Earnings per share data for the quarters ended March 27, 1992 and March 29, 1991 are computed net of $43,000 and $87,000, respectively, in preferred stock dividends.
 2) The March 29, 1991 data includes sales and net income of $2,379,000 and $13,000 from the divested operation.
 -0- 4/20/92
 /CONTACT: Joseph Allen of the South Coast Group, 714-731-4341, for Pacific Scientific/
 (PSX) CO: Pacific Scientific Co. ST: California IN: ARO SU: ERN


DM-JL -- LA009 -- 9827 04/20/92 07:33 EDT
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Publication:PR Newswire
Date:Apr 20, 1992
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