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ROYCE LABORATORIES, INC. ANNOUNCES THIRD QUARTER AND NINE MONTH RESULTS

 MIAMI, Nov. 15 /PRNewswire/ -- Royce Laboratories, Inc. (NASDAQ: RLAB) today reported that for its third quarter ended Sept. 30, 1993 net sales increased 27 percent to $986,640 compared with net sales of $778,502 for the same period in 1992. The company had an operating loss for this year's third quarter of $319,100, compared to an operating loss of $433,964 in last year's third quarter. Based primarily upon the factors set forth below, the company had a net loss of $1,642,675 for the third quarter of 1993, compared to last year's third quarter loss of $397,578.
 For the nine months ended Sept. 30, 1993 net sales increased 45 percent to $2,601,422, compared to net sales of $1,791,236 for the same period on 1992. The operating loss for the nine months was $1,145,028 as compared to an operating loss of $2,150,134 for the nine month period in 1992. Based primarily upon the factors set forth below, the net loss for the nine months ended Sept. 30, 1993 was $2,428,401 compared to a net loss of $2,010,170 for the first nine months of 1992.
 The net loss for the three month and nine month period ending Sept. 30, 1993 reflects a charge to earnings aggregating $1,336,000 resulting from the settlement of the class-action lawsuit filed against the company and one other lawsuit.
 On Sept. 28, 1993 the Settlement Stipulation for the class-action lawsuit received court approval. Pursuant to this agreement, the company is obligated to issue 750,000 shares of free trading common stock. The value of the common stock as of the close of business on Sept. 28, 1993, was $1.718 per share. Accordingly, a charge of $1,288,500 was made against earnings in the third quarter to reflect the liability relating to the future issuance of these shares.
 In October 1993, a settlement agreement was reached with a marketing firm in which the company has issued 20,646 shares of restricted common stock and a three-year option to purchase 20,000 shares of common stock at $1.9735 per share. Accordingly, a charge of $47,500 was made against earnings in the third quarter of 1993.
 Royce Laboratories, Inc. is a manufacturer of off-patent prescription and over-the-counter pharmaceuticals.
 ROYCE LABORATORIES, INC.
 STATEMENTS OF OPERATIONS (UNAUDITED)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992(A) 1993 1992(A)
 Net sales $986,640 $778,502 $2,601,422 $1,791,236
 Cost of products
 sold 742,277 612,680 2,082,980 1,606,436
 Gross profit 244,363 165,822 518,442 184,800
 Expenses related
 to product
 recalls 3,476 56,425 21,507 479,124
 Research and
 development 46,602 52,959 123,183 178,249
 Selling, general
 and administrative
 expenses 513,385 490,402 1,518,780 1,677,561
 Operating loss (319,100) (433,964) (1,145,028) (2,150,134)
 Other income
 (expense):
 Interest income 13,648 37,757 55,497 148,212
 Interest expense (1,223) (1,365) (2,870) (4,208)
 Settlement of
 lawsuits (1,336,000) --- (1,336,000) ---
 Miscellaneous
 expense --- (6) --- (4,040)
 Total (1,323,575) 36,386 (1,283,373) 139,964
 Net income (loss)
 applicable to
 common
 stockholders (1,642,675) $ (397,578) $(2,428,401) $(2,010,170)
 Loss per share of
 common stock $(.058) $(.014) $(.086) $(.072)
 Weighted average
 number of
 shares
 outstanding 28,311,884 28,078,466 28,186,341 27,836,363
 (A) -- Certain accounts have been reclassified to conform to 1993 classifications.
 -0- 11/15/93
 /CONTACT: Patrick J. McEnany, chief executive officer, Royce Laboratories, Inc., 305-624-1500/
 (RLAB)


CO: Royce Laboratories, Inc. ST: Florida IN: MTC SU: ERN

AW-RK -- FL010 -- 4583 11/15/93 15:12 EST
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Publication:PR Newswire
Date:Nov 15, 1993
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