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SIX MONTHS EARNINGS AFFECTED BY SECOND QUARTER LOSS, REPORTS nVIEW

SIX MONTHS EARNINGS AFFECTED BY SECOND QUARTER LOSS, REPORTS nVIEW
 NEWPORT NEWS, Va., July 24 /PRNewswire/ -- nVIEW Corporation (NASDAQ-NMS: NVUE) today announced that net income for the first six months of 1992 was $87 thousand, or $.02 per share, compared with $350 thousand, or $.12 per share, for the same six months period last year. The number of shares used in the per share calculation for the comparative six months of 1992 and 1991 were 5.0 million and 3.0 million, respectively.
 For the second quarter of 1992, the company experienced a net loss of $483 thousand, or $.10 per share, which compared with net income of $287 thousand, or $.08 per share, for the second quarter of 1991. The number of shares used in the per share calculation for the comparative 1992 and 1991 second quarters were 5.1 million and 3.7 million, respectively.
 William Donaldson, nVIEW's president and chief executive officer, in commenting on the earnings performance stated, "The net loss for the second quarter primarily reflected slower sales growth during a period of rapidly rising operating expenses." Sales of $6.5 million for the second quarter of 1992 were above sales of $3.6 million for the same quarter last year while falling below sales of $7.4 million for the first quarter of 1992.
 He went on to say, "As we stated in a May 28, 1992, news release, we believe sales in the first half of the second quarter were adversely affected by a lag in reorders from our dealer and distributor network brought about by a large, concentrated shipment of products into the network at the end of March."
 Sales were particularly slow in the company's international operation where, for the second quarter, sales declined 58 percent from first quarter of 1992. Domestic sales, while below expectations, increased 22 percent for the second quarter of 1992 over the previous quarter's results. Recent actions taken to expand the international distribution network, coupled with additions to nVIEW's international sales and marketing activities, are expected to counter the effects of the slow down in international sales.
 Operating expenses of $2.6 million for the second quarter were well above the $785 thousand for the second quarter of 1991 and the $1.7 million for the first quarter of 1992. Operating expenses increased for the second quarter primarily as a result of higher levels of marketing and promotion expenses associated with a significantly expanded product line and included the costs related to the introduction of several new products at the end of the second quarter. For the same reason, research and development costs also exceeded prior period levels. General and administrative expenses, including personnel expenses, grew in response to the continuation of a program, initiated in the first quarter of 1992, to build a strong, effective infrastructure to support future growth. These expenses also reflected higher legal costs, primarily related to a lawsuit filed by nVIEW to protect certain patent rights. nVIEW sought and was granted dismissal of the lawsuit in June of this year.
 Donaldson added: "We are obviously disappointed by the lack of earnings in the second quarter. However, we are encouraged by the fact that we have developed and are continuing to develop one of the most comprehensive and highest quality product lines in the liquid crystal projection display industry. The benefits anticipated from an expanding product line, the investment in the development of a more extensive distribution network, the implementation of new sales and marketing programs along with a stronger more defined infrastructure justify current expenditures."
 nVIEW's financial condition remained strong with total assets at the end of the second quarter of 1992 of $32.3 million, compared with $8.3 million at the end of the same quarter in 1991 and $1te last year, and $8.5 million on Dec. 31, 1991.
 nVIEW Corporation, headquartered in Newport News, with additional offices in San Diego, Edgewater, N.J., and Kehlen, Luxembourg, is a leading manufacturer of projection products, utilizing liquid crystal display technology, which are sold through a worldwide network of dealers and distributors.
 nVIEW CORPORATION
 Financial Summary
 Three Months Ended Six Months Ended
 June 30, June 30, June 30, June 30,
 1992 1991 1992 1991
 Sales $6,535,421 $3,557,666 $13,902,220 $5,504,898
 Net Income (Loss) (483,063) 287,183 87,143 349,880
 Average Shares 5,087,199 3,666,740 4,977,625 2,983,052
 Earnings (Loss)
 Per Share (.10) .08 .02 .12
 As of As of
 June 30, 1992 June 30, 1991
 Total Assets $32,333,110 $8,306,389
 Current Liabilities 6,543,163 738,423
 Shareholders' Equity 25,789,947 7,567,966
 -0- 7/24/92
 /CONTACT: Jim Kirkpatrick, corporate communications, nVIEW 804-873-1354/
 (NVUE) CO: nVIEW Corporation ST: Virginia IN: CPR SU: ERN


TW -- DC026 -- 3218 07/24/92 17:46 EDT
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Date:Jul 24, 1992
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