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PRECISION AEROTECH REPORTS FIRST QUARTER RESULTS

 PRECISION AEROTECH REPORTS FIRST QUARTER RESULTS
 LA JOLLA, Calif., Sept. 16 /PRNewswire/ -- Precision Aerotech


Inc. (AMEX: PAR) today announced sales of $11.8 million for the first fiscal quarter of 1993 ended July 31, 1992, compared with $13.3 million for the comparable period one year earlier. The company reported a net loss of $630,000 or $.20 per share after adjusting for the effect of preferred stock dividends, compared with net income of $33,000 or $.01 per share for the same quarter last year.
 Net sales from continuing operations decreased to $11.8 million from $13.3 million for the same period one year earlier. This decrease is largely related to the reductions in defense program sales experienced at Speedring Inc. ("Speedring") during the latter three quarters of the fiscal year ended April 30, 1992, and the continued efforts to downsize and refocus operations at the Coast Aerotech Inc. ("Coast") subsidiary. Sales for the reporting period at L&S Aerotech Inc. ("L&S") were nearly equal to the comparable period one year earlier, and sales at Speedring Systems Inc. ("Systems") increased approximately 40 percent or $700,000.
 Gross profit decreased to $3.0 million from $3.3 million as compared to the same period one year earlier, in line with reduced sales. The gross margin percent increase at Systems, largely associated with accounting classification changes, and L&S provided an offset to margin decreases at Speedring, related to the increasing mix of new program start-up activity.
 Selling, general and administrative expenses increased to $2.3 million from $1.9 million for the comparable period a year earlier. The majority of the increase is attributed to the above- mentioned accounting reclassification at Systems and increased sales and business development initiatives throughout all of the registrant's operations.
 The volume and margin impacts from the lower business levels and business transition at Speedring and aggressive corporate-wide new business development activities were responsible for the decrease in net earnings compared to the same period one year ago.
 While the intensive efforts to acquire new customers and applications and penetrate new industries and markets continue to receive top priority, new orders for traditional defense-related customers and programs are expected to decline further at Speedring. Commercial aerospace continues to soften from its peak activity levels of the last 12 to 24 months, having some impact on L&S and Coast.
 Activities are proceeding with senior and subordinated lenders to financially restructure the debt of the company. The objective of this restructuring is to reduce current levels of indebtedness and associated debt service costs. If the restructuring involves the conversion of debt to equity, it may result in a significant dilution to the current shareholders. In connection with the restructuring, the company has suspended interest payments on its subordinated debt pending the restructuring and agreed with its subordinated lender to extend the interest payment due Sept. 1, 1992, to Oct. 15, 1992.
 PRECISION AEROTECH INC.
 Financial Highlights
 Consolidated Condensed Statements of Operations -- (Unaudited)
 (In thousands, except shares and per share data)
 Three Months Ended July 31,
 1992 1991
 Net sales $11,848 $13,293
 Income (loss) before
 income taxes (599) 33
 Income tax expense 31 ---
 Net income (loss) ($630) $33
 Net income (loss) per share ($.20) $.01
 Number of shares used in
 calculation 3,452,953 4,543,499
 -0- 9/16/92
 /CONTACT: R.W. Detweiler or S.R. Greene of Precision Aerotech, 619-456-2992/
 (PAR) CO: Precision Aerotech Inc. ST: California IN: ARO SU: ERN


LS-JB -- SD002 -- 9962 09/16/92 09:02 EDT
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Publication:PR Newswire
Date:Sep 16, 1992
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