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PYRAMID REPORTS FIRST QUARTER LOSS AND RESTRUCTURING

 PYRAMID REPORTS FIRST QUARTER LOSS AND RESTRUCTURING
 MOUNTAIN VIEW, Calif., Jan. 21 /PRNewswire/ -- Pyramid Technology Corp. (NASDAQ: PYRD) today reported revenues for its fiscal 1992 first quarter of $49,423,000, down from the $55,744,000 reported for the same quarter last year. As the company disclosed in its Dec. 30., 1991 press release, the principle reason for the revenue shortfall is the continuing worldwide recession and the resultant reduction in capital spending which has particularly impacted high-end computer manufacturers.
 The company reported a net loss for its fiscal 1992 first quarter of $18,508,000, or a loss of $1.56 per share, compared to net income of $4,649,000 or $0.40 per share, earned in the first quarter of fiscal 1991. The loss included a one-time restructuring charge of $17,745,000 and the company's cost of settling its shareholders class action litigation of $900,000. Excluding the restructuring charge and legal settlement, the net loss for the quarter amounted to $3,592,000.
 The restructuring broadly reflects a realignment of corporate infrastructure, downsizing and/or discontinuing less profitable business units and a more focused research and development effort. The restructuring charge included, among other things, a reduction in the company's work force, a consolidation of facilities and a write- off of assets whose value was impaired as a result of the restructuring. The company reduced its work force this week by approximately 170 employees.
 "Despite our concerned efforts to remain profitable during the recession, the increasingly severe computer industry downturn resulted in the company's first quarterly loss since the first fiscal quarter of 1987," said Richard H. Lussier, chairman, president and CEO. "We are responding to this challenge and the increasingly competitive sales environment by cutting our cost structure, with the goal of reducing our annual spending rate by $15 to $20 million. Although we are uncertain as to when the computer slump will end, we believe the restructuring should position us to return to profitability and continue our leadership role in the high-end UNIX systems market, while maintaining the company's commitment to deliver the highest quality products and support to our customers."
 Founded in 1981, the Mountain View-based company manufactures and markets the MIServer(TM) line of high-performance servers for the open commercial marketplace. Pyramid's systems run the largest UNIX-based relational databases in the world, and are based on a symmetric multiprocessor architecture that combines an enhanced UNIX operating system with reduced instruction set computing (RISC) processor technology.
 PYRAMID TECHNOLOGY CORP.
 (in thousands, except per share data)
 First Quarter Ended
 Dec. 27 Dec. 28
 1991 1990
Revenues $ 49,423 $ 55,744
Income (loss) before income taxes ($23,135) 7,152
Net income (loss) ($18,508) 4,649


Earnings (loss) per share:
 Net income (loss) $ ($1.56) $ .40
 Shares used in per share computation 11,843 11,516
 -0- 1/21/92
 /CONTACT: Kent robertson of Pyramid Technology Corp., 415-965-7200/
 (PYRD) CO: Pyramid Technology Corp. ST: California IN: CPR SU: ERN


RM -- SJ003 -- 2058 01/21/92 16:42 EST
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Publication:PR Newswire
Date:Jan 21, 1992
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