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PROMIS SYSTEMS CORPORATION LTD. REPORTS RESULTS

 TORONTO, May 25 /PRNewswire/ - Promis Systems Corporation Ltd. today announced its results for its first fiscal 1993 quarter ending March 31. According to Mr. Elliot Wassarman, Promis' President and CEO, "The extension of selling cycles in new market segments together with seasonal fluctuations produced disappointing results for Promis Systems in the first quarter." Revenues for the quarter ended March 31 were US$1.9 million, well below both the company's expectations and the US$2.7 million of the first quarter of 1992. After the costs associated with commitment to increased international marketing and new product development, Promis Systems reported a net loss of US$1,135,000, or $0.24 per share, in the first quarter, compared with a net loss of US$145,000 or $0.16 per share a year earlier. These results do not include those of Palette Systems Inc., the company acquired by Promis in April 1993.
 For Promis, the first quarter has always been the weakest and has produced a net loss, while the fourth quarter has always been strongest and has produced most of the annual earnings. The comparatively higher amount of revenues earned in the fourth quarter reflects the momentum of the sales cycle, which typically peaks in the fourth quarter.
 Revenues for the first quarter included major sales to the semiconductor operations of Motorola, Inc. and to Analog Devices (Phils.) Inc. another semiconductor manufacturer. Promis also sold add-ons to semiconductor and fiber companies in Japan and the United States. Other sales, which were expected to complete during the quarter, were delayed. Mr. Wassarman added, "Given the size and importance of these contracts to our customer base, the precise timing of closing of such orders is uncertain. Since our unit sales can range from about US$200,000 to US$2 million per customer, it's very difficult to predict revenue on a monthly basis, but within predictability on an annual basis. This has been true throughout the company's history. We continue to sell our products to major global companies who are well-funded and have a continuing need for our class of software solution. We are also pleased to note that we have not experienced the loss of any business to competition this quarter.
 "As we focus on selling into new industry segments, we continue to see longer selling cycles than has been our experience in selling to our traditional accounts. Unlike the semiconductor industry where we have a long and proven history, new customer segments understandably require a greater investment of time before committing their budgets.
 "Despite the shortfall in revenues in the first quarter, we are maintaining profit margins and Promis remains financially strong, with no debt and about US$10 million in cash and undrawn lines of credit available for investment. This financial strength allows us to deal with the short-term challenges while maintaining a longer-term view of our corporate direction.
 "In light of our first quarter performance, we have examined all areas of the company to find ways to reduce expenditures while staying with our corporate strategies. As our strategies evolve and with the spending measures we are taking, we are very confident that both revenues and profits for 1993 will exceed our results for the 1992 fiscal year."
 PROMIS is a registered trade-mark of Promis Systems Corporation Ltd.
 -0- 5/25/93
 /NOTE TO EDITORS: When referring to the company, use Promis Systems Corporation Ltd. or Promis (initial cap only). When referring to the company's product, please use PROMIS in all caps.
 /CONTACT: Gordon Wilde, vice president-finance & chief financial officer, 416-960-0960; or Elliot Wassarman, president & CEO, 416-960-0960, all of of Promis Systems Corporation Ltd./
 (PSW.)


CO: Promis Systems Corporation Ltd. ST: Ontario IN: CPR SU: ERN

TS -- NY064 -- 2178 05/25/93 12:49 EDT
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Publication:PR Newswire
Date:May 25, 1993
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