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PERCEPTRONICS REPORTS 1992 RESULTS

 WOODLAND HILLS, Calif., Nov. 19 ~PRNewswire~ -- Perceptronics Inc. (NASDAQ: PERC) today reported net losses of $2,910,767 and $2,897,151, respectively, for its second fiscal quarter and six-month periods ended Sept. 30, 1992. On a per-share basis, the losses equalled $.83 for both periods. This contrasts to net income a year ago in the second quarter of $240,601, or $.07 per share, and for the six months of $331,073, or $.09 per share.
 Revenues for the current second quarter dropped to $2,392,045 from $6,626,311 in the corresponding prior-year quarter, reflecting delays, postponements and cancellations of both domestic and foreign defense programs. For the current six-month period, Perceptronics' revenues totaled $7,770,281 vs. $12,083,824 a year ago.
 In addition to the impact of the reduced sales, the second- quarter loss includes a $1.1 million litigation reserve against unbilled receivables. This amount represents Perceptronics' share of the losses expected by the parties if the PGTS settlement with Simtech and Tadiran is made as presently contemplated and the PGTS program scope remains unchanged. Although settlement is not yet certain, because of continuing negotiations and contingencies beyond the company's control, accounting rules require reserving for the potential loss at the time the company makes a settlement offer.
 Regarding the PGTS settlement reserve, Dr. Gershon Weltman, Perceptronics' chairman and chief executive officer, explained: "The PGTS program has been plagued with costly overruns and legal battles. Although Perceptronics has a strong position in the litigation and arbitration, we feel settlement is preferable, because such disputes risk serious disruption and even termination of the entire program. Moreover, we believe that if the PGTS program continues without further dispute, our participation in anticipated additional development work and production efforts over the life of the program could generate future profits that would more than offset the loss recorded in this quarter."
 Also, second quarter operating losses reflect legal expenses stemming from the PGTS litigation and arbitration, increased marketing expenditures for commercial products, severance costs associated with personnel cutbacks and the relatively unchanged level of fixed expenses.
 "Going forward, we are expecting higher revenue levels in the coming two quarters," said Weltman, "and sufficient cash levels to meet our operating needs. Regardless, total revenues for the 1993 fiscal year are now projected to be about one-third below fiscal 1992's $25.1 million."
 Weltman added: "Our challenge is to keep costs in line with these reduced sales levels, as we simultaneously and aggressively work to realize the commercialization of our concurrent engineering software products. We are also actively working with our joint venture partner to further stimulate sales of our professional truck driving trainer."
 At Sept. 30, 1992, Perceptronics' firm contract backlog totaled $5.4 million; coupled with an option backlog of $34.1 million, the company's total backlog was $39.5 million. At year end, March 31, 1992, total backlog equalled $47.2 million.
 Perceptronics is engaged in research and development and in the manufacture and marketing of computer-based simulation software and systems for commercial and military training and decision support.
 PERCEPTRONICS INC.
 Consolidated Condensed Statements Of Operations
 Three Months Six Months
 Ended Sept. 30, Ended Sept. 30,
 1992 1991 1992 1991
 Revenues
 Sales $2,392,045 $6,626,311 $7,770,281 $12,083,824
 Interest 6,112 97,805 23,356 213,864
 Total Revenues 2,398,157 6,724,116 7,793,637 12,297,688
 Cost And Expenses
 Cost of sales 3,854,414 5,517,831 8,029,026 9,813,859
 General & admin-
 istrative 1,133,482 646,822 2,024,119 1,416,067
 Research &
 development 39,436 43,612 67,201 218,278
 Interest 282,992 250,650 570,442 484,511
 Total Cost &
 Expenses 5,310,324 6,458,915 10,690,788 11,932,715
 Income (loss) before
 income taxes and
 extraordinary
 item (2,912,167) 265,201 (2,897,151) 364,973
 Provision (credit)
 for income taxes (6,100) 118,900 --- 163,700
 Income (loss)
 before
 extraordinary
 item (2,906,067) 146,301 (2,897,151) 201,273
 Extraordinary item for
 utilization of net
 operating loss
 carryforward (4,700) 94,300 --- 129,800
 Net income
 (loss) ($2,910,767) $240,601 ($2,897,151) $331,073
 Per share amounts --
 Primary and fully
 diluted:
 Income before
 extraordinary
 item ($.83) $.04 ($.83) $.05
 Extraordinary item --- .03 --- .04
 Net Income (loss) ($.83) $.07 ($.83) $.09
 Average number of
 common shares
 outstanding 3,489,086 3,724,259 3,488,886 3,736,445
 -0- 11~19~92
 ~CONTACT: Dr. Gershon Weltman, chairman and CEO of Perceptronics, 818-884-7470; or Cecilia A. Wilkinson or Kim P. Feazle of Pondel Parsons & Wilkinson, 310-207-9300, for Perceptronics~
 (PERC)


CO: Perceptronics Inc. ST: California IN: CPR SU: ERN

BP-JL -- LA013 -- 2931 11~19~92 13:06 EST
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Date:Nov 19, 1992
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