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PIONEER-STANDARD REPORTS RECORD SALES, BUT EARNINGS DECLINE

 PIONEER-STANDARD REPORTS RECORD SALES, BUT EARNINGS DECLINE
 CLEVELAND, Jan. 15 /PRNewswire/ -- Pioneer-Standard Electronics, Inc. (NASDAQ: PIOS) today said that despite record quarterly sales, third quarter earnings were down from year-earlier levels. The Cleveland-based distributor of industrial electronic components and computer products atrributed the earnings decline principally to intense price competition, a shift in product mix to lower margin transactions an to investment to expand its southern California sales operations.
 Net income for the third quarter ended Dec. 31, 1991 was $1,245,000 compared to $2,041,000 for the same period a year earlier. Earnings per share for the current year third quarter were 23 cents (22 cents fully diluted) versus 38 cents (35 cents fully diluted) last year.
 Pioneer-Standard third quarter sales were $93,439,000, up from $85,720,000 in the prior-year third quarter. Combined sales of Pioneer-Standard and its 50 percent-owned affiliate, Pioneer/Technologies Group, Inc., totaled $140,305,000 compared to $123,368,000 a year earlier. For reporting purposes, sales of Pioneer/Technologies are not consolidated with those of Pioneer-Standard.
 For the nine months ended Dec. 31, 1991, net income was $3,977,000 versus $6,008,000 a year earlier. Current year nine-month earnings per share were 73 cents (70 cents fully diluted) compared to $1.11 per share ($1.02 fully diluted) last year.
 Pioneer-Standard sales for the nine months amounted to $269,218,000, up from $253,969,000 last year. Combined nine-month sales of Pioneer-Standard and its affiliate were $401,616,000 compared to $370,215,000 last year.
 Pioneer-Standard's equity interest in Pioneer/Technologies third quarter earnings was $94,000 versus $72,000 last year. For the nine months, equity earnings in the current year were $127,000 compared to $389,000 last year.
 Preston Heller, Jr., chairman and chief executive officer, said that third quarter sales reflected increased market share in a particularly competitive market. He said that semiconductors, which account for a significant portion of sales, were particularly susceptible to the competitive pricing environment. Heller said the company had instituted stringent expense containment measures to help counter pressures on margins.
 He said that third quarter results also were affected by a significant investment in the expansion of its sales operations in California. Pioneer-Standard entered the southern California market with a December, 1990 acquisition. Heller said that this current expansion enhances the company's West Coast presence and give the company "a coast-to-coast marketing scope."
 Pioneer-Standard and its affiliate market a broad range of electronic components and computer products through 42 locations and serve most of the nation's major markets. Their combined sales rank fifth among the nation's 1500 industrial electronics distributors.
 PIONEER-STANDARD ELECTRONICS, INC.
 Financial Highlights (Unaudited)
 (Dollars in thousands except per share amounts)
 SALES AND EARNINGS
 THREE MONTHS
 Period ended Dec. 31 1991 1990
 Combined Sales (A) $140,305 $123,368
 Net sales $93,439 $85,720
 Cost of sales 73,741 66,528
 Operating expenses 16,626 14,759
 Operating profit 3,072 4,433
 Interest expense 1,156 1,156
 Equity earnings (A) 94 72
 Income before taxes 2,010 3,349
 Taxes 765 1,308
 Net income $1,245 $2,041
 Earnings per share:
 Primary $.23 $.38
 Fully diluted $.22 $.35
 Dividends per share $.04 $.04
 Equity per share --- ---
 Average shares outstanding:
 Primary --- ---
 Fully diluted --- ---
 NINE MONTHS
 Period ended Dec. 31 1991 1990
 Combined Sales (A) $401,616 $370,215
 Net sales $269,218 $253,969
 Cost of sales 210,913 196,941
 Operating expenses 48,465 44,035
 Operating profit 9,840 12,993
 Interest expense 3,431 3,686
 Equity earnings (A) 127 389
 Income before taxes 6,536 9,696
 Taxes 2,559 3,688
 Net income $3,977 $6,008
 Earnings per share:
 Primary $.73 $1.11
 Fully diluted $.70 $1.02
 Dividends per share $.12 $.11
 Equity per share $10.29 $9.30
 Average shares outstanding:
 Primary 5,469,391 5,408,547
 Fully diluted 6,610,909 6,600,842
 CONDENSED BALANCE SHEETS
 December 31, 1991 and 1990
 Assets 1991 1990
 Current assets
 Cash $324 $1,552
 Receivables 50,663 55,455
 Inventory 62,567 56,749
 Other 3,614 2,622
 Total $117,168 $116,378
 Net fixed assets 23,310 21,987
 Equity investment 8,430 7,989
 Other 1,559 1,860
 Total $150,467 $148,214
 Liabilities & Equity 1991 1990
 Current liabilities
 Current debt $2,000 ---
 Accounts payable 32,579 30,489
 Other 11,479 13,338
 Total $46,058 $43,827
 Long-term debt 46,736 52,940
 Deferred taxes 1,378 1,152
 Equity 56,295 50,295
 Total $150,467 $148,214
 (A) -- Sales of Pioneer-Standard Electronics, Inc. and its 50 percent-owned affiliate, Pioneer/Technologies Group, Inc. are not consolidated for reporting purposes. Combined sales of the two organizations are shown for informational purposes. The company records 50 percent of the affiliate's net income on the equity method.
 -0- 1/15/92
 /CONTACT: John V. Goodger of Pioneer-Standard Electronics, Inc., 216-587-3600/
 (PIOS) CO: Pioneer-Standard Electronics, Inc. ST: Ohio IN: CPR SU: ERN


CG -- CL013 -- 0022 01/15/92 12:56 EST
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