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PRECISION AEROTECH REPORTS SECOND QUARTER RESULTS

 LA JOLLA, Calif., March 9 /PRNewswire/ -- Precision Aerotech Inc. (AMEX: PAR) today announced sales of $11.4 million for the second fiscal quarter ended Oct. 31, 1992, compared with $13.0 million for the comparable period one year earlier. The company reported a net loss of $514,000, or $.17 per share, after adjusting for the effect of preferred stock dividends, compared with a net loss of $370,000 for the same quarter one year earlier.
 A full reflection of the downsizing activities taking place at the Coast Aerotech Inc. ("Coast") subsidiary over the past two years and lower commercial air transport and military spare parts sales at the L&S Aerotech Inc. ("L&S") facility were the primary factors negatively affecting sales during the quarter. Increased sales at Speedring Systems Inc. partially offset the reductions discussed above.
 Sales for the first six months ended Oct. 31, 1992, were $23.3 million vs. $26.3 million for the comparable period one year earlier. The factors affecting the year-to-date sales reduction are essentially the same as the first quarter.
 The increased net loss for the quarter, compared with the same period one year earlier, reflects lower gross profit resulting from lower sales and some increase in S,G&A associated with growth and new production introduction at Systems and more aggressive business development activities at Speedring.
 The net loss of $1.1 million for the six months ended Oct. 31, 1992, compared to $337,000 one year earlier, is largely associated with the same Systems and Speedring changes mentioned above.
 The company is currently in default under loan agreements with The Foothill Group and Teachers Insurance and Annuity Association (TIAA). The company has been negotiating waivers to such defaults and restructuring of its debt obligations with its lenders. The debt restructuring activities, targeted toward reducing indebtedness and debt service costs were temporarily suspended when the RTC auctioned and sold the entire HomeFed commercial loan portfolio.
 Discussions with a new senior lender are currently in process. These discussions with this new senior lender regarding a restructuring of its debt obligations are expected to be initiated this month. Such a restructuring is likely to entail significant dilution to the company's existing common stockholders.
 As of this date, the company has delayed the filing of its quarterly report on Form 10-Q for the quarter ended Oct. 31, 1992, as a result of the pending resolution of discussions with the senior and subordinated lenders. However, given the delays caused by the change in senior lenders, the 10-Q for the period ended Oct. 31, 1992, will be filed on or before March 17, 1993.
 PRECISION AEROTECH INC.
 Financial Highlights
 (Unaudited)
 (In thousands except shares and per share data)
 Three Months Ended Six Months Ended
 Oct. 31, Oct. 31,
 1992 1991 1992 1991
 Net sales $11,418 $12,995 $23,266 $26,288
 Income (loss) before
 income taxes (484) (322) (1,083) (290)
 Income tax expense 30 48 61 47
 Net income (loss) ($514) ($370) ($1,144) ($337)
 Net income (loss)
 per share ($.17) ($.12) ($.37) ($.13)
 Weighted average
 number of common
 shares
 outstanding 3,448,253 3,452,953 3,448,253 3,452,953
 -0- 3/9/93
 /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

JB-JL -- SD004 -- 4688 03/09/93 17:23 EST
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Publication:PR Newswire
Date:Mar 9, 1993
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