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SOFTWARE ETC. STORES, INC. REPORTS SECOND QUARTER RESULTS

 MINNEAPOLIS, Aug. 17 /PRNewswire/ -- Software Etc. Stores, Inc. (NASDAQ: SFWR), the nation's leading specialty retailer of home PC and video game software, today reported its results for the second quarter ended July 31, 1993.
 Revenues in the second quarter were $43.5 million, up 20 percent from $36.1 million a year ago. The net loss for the quarter, before non-recurring items, was ($1,295,000) or ($.16) per share, compared with a loss of ($624,000) or ($.09) per share, for the same quarter last year. For the first six months of the year, sales reached $95.4 million, up 24 percent from $76.9 million one year ago. Comparable store sales gains for the first half were 6 percent, versus 12 percent in the year-ago period.
 Comparable store sales during the second quarter rose 2 percent from the same period a year ago. President and CEO Dan DeMatteo said that the delay of new video game releases during the second quarter resulted in a double digit comparable store sales decline in the video game category. "We're seeing some of these titles -- like Jurassic Park and Streetfighter II Turbo -- hit now, with strong sales in August, and we expect to see continued strong sales in our video game category during the fall and holiday selling season," DeMatteo said.
 During the quarter just ended, sales in PC upgrades and PC productivity software posted double-digit comparable store gains, DeMatteo said.
 During the second quarter May 2 - July 31, 1993, Software Etc. opened 17 new stores, relocated 1 store and closed 1 store. At the quarter-end, Software Etc. operated 295 stores in 43 states and the District of Columbia, up from 245 stores one year ago.
 Software Etc. Stores, Inc.
 Statements of Operations
 (Unaudited)
 (dollars in thousands, except per share data)
 13 weeks ended 26 weeks ended
 07/31/93 08/01/92 07/31/93 08/01/92
 Net sales $43,507 $36,100 $95,351 $76,869
 Cost of sales 30,111 23,944 66,271 51,011
 Gross margin 13,396 12,156 29,080 25,858
 Store operating expense 12,872 10,516 24,803 20,365
 General and administrative
 expense 2,103 1,893 4,297 3,766
 Store closing expense --- 102 103 346
 Operating income (loss) (1,579) (355) (123) 1,381
 Interest expense 507 612 1,075 1,497
 Loss before income taxes,
 extraordinary item and
 cumulative effect of
 change in accounting
 method (2,086) (967) (1,198) (116)
 Benefit from income taxes (791) (343) (454) (7)
 Loss before extraordinary
 item and cumulative
 effect of change in
 accounting method (1,295) (624) (744) (109)
 Extraordinary item -- tax
 provision arising from
 carryforward of prior
 periods' net operating
 losses --- (328) --- (39)
 Cumulative effect as of
 Jan. 30, 1993, of change
 in method of accounting
 for income taxes --- --- 1,427 ---
 Net income (loss) (1,295) (952) 683 (148)
 Preferred stock dividends
 and redemption premium --- --- --- (318)
 Net income (loss)
 applicable to common
 stockholders $(1,295) $(952) $683 $(466)
 Earnings (loss) per
 common share:
 Loss before extraordinary
 item and cumulative
 effect of change in
 accounting method $(0.16) $(0.09) $(0.09) $(0.07)
 Extraordinary item --- (0.05) --- (0.01)
 Cumulative effect of change
 in accounting method --- --- 0.18 ---
 Net income (loss) $(0.16) $(0.14) $0.09 $(0.08)
 Weighted average common
 shares and equivalent
 shares outstanding 8,050,433 6,994,905 7,793,159 5,837,595
 -0- 8/17/93
 /CONTACT: Bob Strawman, chief financial officer, Software Etc., 612-893-7622/
 (SFWR)


CO: Software Etc. Stores, Inc. ST: Minnesota IN: REA SU: ERN

BM -- CL009 -- 3478 08/17/93 10:50 EDT
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Publication:PR Newswire
Date:Aug 17, 1993
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