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 SANTA MONICA, Calif., Nov. 9 /PRNewswire/ -- Quarterdeck Office Systems Inc. (NASDAQ: QDEK) today reported net earnings of $1.2 million, or $0.06 per share, on net sales of $44.9 million for the fiscal year ended Sept. 30, 1993. This compares with net earnings of $9.1 million, or $0.45 per share, on net sales of $55.0 million for the fiscal year ended Sept. 30, 1992.
 For the quarter ended Sept. 30, 1993, the company reported net earnings of $227,000, or $0.01 per share, on net sales of $11.3 million, compared with net earnings of $1.4 million, or $0.07 per share, on net sales of $13.5 million for the corresponding year-earlier quarter.
 The decline in net sales and net earnings for the year just ended are attributed to lower sales of the company's DESQview multitasking and QEMM memory management products, while sales of its DESQview/X products remained level from year to year.
 "Sales of QEMM declined significantly in the March 1993 quarter, the quarter in which Microsoft shipped MS-DOS 6," said Therese E. Myers, president and chief executive officer. "After user evaluation and the release of QEMM 7, QEMM sales rebounded to stronger levels in the June and September 1993 quarters. QEMM 7 maintains Quarterdeck's leadership role in memory management, and the response to this new version indicates a continued need for the extensive memory management that QEMM provides.
 "We believe many opportunities continue to exist for the company in our core memory management business. We anticipate that memory will remain a critical resource and that the optimization of a user's available memory will provide opportunities for Quarterdeck beyond the current QEMM 7 product.
 "During the fiscal fourth quarter we began shipping a Japanese version of QEMM. This version is distributed in Japan by IBM Japan. Because of the memory requirements of DOSV, the Japanese and other Asian operating system, we see opportunities for QEMM in these markets.
 "The release of Microsoft Windows 3.1 in March of 1992 had an immediate downward impact on sales of our multitasking DESQview products," said Myers. "Nevertheless, sales of DESQview and DESQview 386 have remained relatively stable over the past six quarters since March of 1992, as there is a particular market which relies on DESQview's strong multitasking capabilities.
 "This market includes process control and communications critical applications," continued Myers. "We are targeting these markets as well as positioning DESQview and DESQview 386 to portable and other small memory machines."
 Quarterdeck began shipping version 1.2 of DESQview/X in September 1993, which incorporates the new QEMM 7. The company is readying a new version of DESQview/X, which will add important improvements, including enhanced performance and improved cross-platform operations.
 During the last quarter of fiscal 1993, Quarterdeck readied two new products for market: Hyper-X graphics drivers for Novell's UnixWare, the company's first non-DOS product, and SideBar for Windows, an object- oriented desktop for Microsoft Windows. Both of these products as well as the new version of DESQview/X are scheduled for release in the first half of fiscal 1994.
 International sales amounted to $1.9 million, or 17 percent of total net sales for the September 1993 quarter, up from $1.3 million, or 11 percent in the June 1993 quarter. International sales for fiscal 1993 amounted to $7.8 million, or 17.4 percent of total net sales, compared with $9.1 million, or 16.5 percent of total net sales in the prior year. The delay in shipment of German and French language versions of new product releases until the last quarter of the fiscal year contributed to the lower net sales figure in the current year.
 Quarterdeck's financial position remains strong. Cash, short-term investments, and receivables amounted to $37.8 million at Sept. 30, 1993, compared with $37.9 million at Sept. 30, 1992. Book value per share for the company was $2.46, and the long-term debt position remained negligible.
 Quarterdeck is a technology leader in the development of software products that enhance the performance of Intel-based personal computer hardware and software as well as cross-platform, networked systems. The company develops, markets, and supports multitasking, windowing and memory management software designed to bring cost-effective computing solutions to business and professional PC users.
 (Amounts in thousands, except per share data)
 Three Months Ended Fiscal Year Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Net sales $11,279 $13,477 $44,939 $55,002
 Costs and expenses:
 Direct costs 1,438 1,507 6,245 6,429
 Software development
 costs 688 793 2,624 1,786
 Selling, general and
 administrative expenses 9,023 9,241 35,151 34,160
 Total 11,149 11,541 44,020 42,375
 Operating income 130 1,936 919 12,627
 Interest income, net 212 273 959 1,304
 Earnings before income taxes 342 2,209 1,878 13,931
 Income taxes 115 783 637 4,796
 Net earnings $227 $1,426 $1,241 $9,135
 Net earnings per share $0.01 $0.07 $0.06 $0.45
 Weighted average number of
 common and common equivalent
 shares outstanding 20,175 20,196 20,196 20,236
 -0- 11/9/93
 /CONTACT: Ronald B. Hammond or Evie Vilkin of Quarterdeck Office Systems, 310-314-3232 or 310-314-3231; or Cecilia A. Wilkinson or Ina McGuinness of Pondel Parsons & Wilkinson, 310-207-9300/

CO: Quarterdeck Office Systems Inc. ST: California IN: CPR SU: ERN

LS-JL -- LA035 -- 2435 11/09/93 16:36 EST
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Publication:PR Newswire
Date:Nov 9, 1993

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