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SYNERCOM ANNOUNCES RESULTS FOR SECOND QUARTER AND SIX MONTHS

 SYNERCOM ANNOUNCES RESULTS FOR SECOND QUARTER AND SIX MONTHS
 HOUSTON, May 22 /PRNewswire/ -- Synercom Technology, Inc. (NASDAQ-NMS: SYNR) today reported net income of $51,000 or $.01 per share on revenues of $3,580,000 for the company's second quarter ended April 30, 1992 compared to net income of $100,000 or $.02 per share on revenues of $3,855,000 in the second quarter of the prior year. Results for the six months ended April 30, 1992 reflect a net loss of $566,000 or $.10 per share on revenues of $6,801,000. The comparable period in fiscal 1991 reflected net income of $369,000 or $.06 per share on revenues of $7,668,000. Included in net income for the quarter and six months ended April 30, 1991 is an extraordinary credit from tax loss carryforwards, which had the effect of increasing net income by $31,000 and $134,000, respectively.
 The decrease in net income for the quarter ended April 30, 1992 compared to the quarter ended April 30, 1991 is due to a slight decrease in total revenues, an increase in cost of revenues and, to a lesser extent, a decrease in interest income. The aforementioned was offset by a reduction of $518,000 in operating expenses for the quarter ended April 30, 1992 compared to the second quarter of the prior year.
 The decrease in total revenue for the quarter ended April 30, 1992 compared to the quarter ended April 30, 1991 is primarily due to a reduction in revenue from the resale of other vendors' products, a continued planned decline in hardware support revenue, and lower consulting revenue. However, revenue from the licensing of Synercom software products was comparable for the quarters ended April 30, 1992 and 1991. Cost of revenues increased primarily due to higher support costs in the services sector and an increase in the amortization of software development costs. The decrease in interest income is a result of a lower cash investment base and lower interest rates.
 The decrease in net income for the six months ended April 30, 1992 compared to the six months ended April 30, 1991 is primarily due to a decrease in revenue from the licensing of Synercom software products experienced in the first quarter of fiscal 1992 compared to the first quarter of fiscal 1991, as previously reported; an increase in cost of revenue; and, to a lesser extent, a decrease in interest income. However, operating expenses decreased by $541,000 for the same period.
 At the company's current revenue levels, financial results can fluctuate from quarter to quarter and period to period as a result of the company's having a high concentration of large customers and also as a result of the timing of the build-out of customer spatial systems and the amount and product mix of certain orders. The build-out of spatial systems solutions usually occurs over a two-to five-year period, with purchase orders being issued throughout this period at the customer's discretion. Factors affecting the build-out include, but are not limited to, the following: (1) the cost and time required to build the spatial database (which is the conversion of the customer's maps and records into a digital format), (2) customer budgetary constraints and (3) readiness of customer facilities.
 Synercom provides integrated spatial systems solutions for major commercial and governmental organizations worldwide. These solutions increase the efficiency, accuracy and cost-effectiveness of engineering, constructing and maintaining geographically dispersed assets and the activities affecting these assets.
 SYNERCOM TECHNOLOGY, INC.
 Financial Highlights
 (Unaudited)
 Three Months ended April 30 1992 1991
 Product licensing and sales $1,849,000 $1,994,000
 Services 1,731,000 1,861,000
 Total revenues 3,580,000 3,855,000
 Gross profit 2,206,000 2,694,000
 Operating expenses (A) 2,262,000 2,780,000
 Interest income 107,000 192,000
 Income before extraordinary credit 51,000 69,000
 Extraordinary credit (B) -- 31,000
 Net income 51,000 100,000
 Income per share before extraordinary
 credit $ 0.01 $ 0.01
 Net income per share $ 0.01 $ 0.02
 Weighted average shares outstanding 5,860,000 5,843,000
 Six months ended April 30 1992 1991
 Product licensing and sales $3,394,000 $4,128,000
 Services 3,407,000 3,540,000
 Total revenues 6,801,000 7,668,000
 Gross profit 3,927,000 5,262,000
 Operating expenses (A) 4,734,000 5,275,000
 Interest income 241,000 400,000
 Income (loss) before extraordinary credit (566,000) 235,000
 Extraordinary credit (B) -- 134,000
 Net income (loss) (566,000) 369,000
 Income (loss) per share before
 extraordinary credit $ (0.10) $ 0.04
 Net income (loss) per share $ (0.10) $ 0.06
 Weighted average shares outstanding 5,716,000 5,861,000
 (A) Capitalized research and development costs were $269,000 and
 $506,000, respectively, for the quarters ended April 30, 1992
 and 1991; and $411,000 and $953,000, respectively, for the six
 months ended April 30, 1992 and 1991.
 (B) Tax benefit from net operating loss carryforwards.
 Selected Balance Sheet Data
 (Unaudited)
 April 30, 1992 1991
 Cash, cash equivalents and short-term
 investments $10,477,000 $10,553,000
 Working capital 9,972,000 9,973,000
 Total assets 17,284,000 19,300,000
 Stockholders' equity 13,773,000 15,337,000
 -0- 5/22/92
 /NOTE TO EDITORS: SYNERCOM is a registered trademark of Synercom Technologies, Inc./
 /CONTACT: Mark K. Vise of Synercom Technologies, 713-954-7000/
 (SYNR) CO: Synercom Technology Inc. ST: Texas IN: SU: ERN


TQ -- NY006 -- 3195 05/22/92 09:42 EDT
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Date:May 22, 1992
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/C O R R E C T I O N -- SYNERCOM/

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