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SYNERCOM TECHNOLOGY ANNOUNCES QUARTERLY RESULTS AND RESIGNATION OF FORSYTH AS PRESIDENT AND CEO

 SYNERCOM TECHNOLOGY ANNOUNCES QUARTERLY RESULTS AND
 RESIGNATION OF FORSYTH AS PRESIDENT AND CEO
 HOUSTON, Feb. 21 /PRNewswire/ -- Synercom Technology, Inc. (NASDAQ-NMS: SYNR) announced today that Robert W. Forsyth, president and chief executive officer, has resigned effective March 1, 1992. He will be joining Computer Science Corporation, where he was employed for 12 years prior to joining Synercom, as president, marketing division for the Industry Service Group. David J. Stewart, currently executive vice president, product development, has been elected president of Synercom effective March 1, 1992.
 Forsyth said, "During the last four years we've redirected and focused Synercom's business and made the investment necessary to penetrate the significant opportunities in providing solutions to the world utilities markets. I beleive the products, people and strategy are now in place to position Synercom for growth in the immediate future. I'm pleased that Dave Stewart will be taking my place as president of Synercom. He is a proven industry executive and is well qualified to lead Synercom's efforts going forward."
 Synercom also reported today a net loss of $617,000 or $.11 per share on revenues of $3,221,000 for the company's first quarter ended Jan. 31, 1992, compared to net income of $269,000 or $.05 per share on revenues of $3,813,000 in the first quarter of the prior year. Included in net income for the quarter ended Jan. 31, 1991, is an extraordinary credit from tax loss carryforwards, which had the effect of increasing net income by $103,000.
 The decrease in net income for the quarter ended Jan. 31, 1992, compared to the quarter ended Jan. 31, 1991, is primarily due to a decrease in revenue from product licensing and sales and, to a lesser extent, a decrease in interest income. The decrease in revenue from product licensing and sales is due to a reduction in the licensing of Synercom software products reflecting fewer large orders in the first quarter of fiscal 1992 compared to the first quarter of fiscal 1991. The decrease in interest income is a result of lower cash investment base and lower interest rates.
 Synercom has been notified by Pacific Bell that it is cancelling support services for software currently maintained by Synercom, effective as of March 12, 1992. At this time, based on such notification and consistent with previous reports by the company, Synercom does not expect to license additional software products to Pacific Bell pursuant to the master software license agreement.
 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. 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.
 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)
 Quarter ended Jan. 31 1992 1991
 Product licensing and sales $1,545,000 $2,134,000
 Services 1,676,000 1,679,000
 Total revenues 3,221,000 3,813,000
 Gross profit 1,721,000 2,568,000
 Operating expenses (A) 2,472,000 2,495,000
 Interest income 134,000 208,000
 Income (loss) before
 extraordinary credit (617,000) 166,000
 Extraordinary credit (B) -- 103,000
 Net income (loss) $ (617,000) $ 269,000
 Income (loss) per share before
 extraordinary credit $(0.11) $.03
 Net income (loss) per share $(0.11) $.05
 Weighted average shares outstanding 5,709,000 5,869,000
 (A) -- Capitalized research and development costs were $142,000 and $447,000, respectively, for the quarters ended Jan. 31, 1992 and 1991.
 (B) -- Tax benefit from net operating loss carryforwards.
 Selected Balance Sheet Data
 (Unaudited)
 1/31/92 1/31/91
 Cash, cash equivalents and
 short-term investments $10,640,000 $11,769,000
 Working capital 9,746,000 10,690,000
 Total assets 16,604,000 19,046,000
 Stockholders' equity 13,680,000 15,236,000
 -0- 2/21/92
 /NOTE TO EDITORS: SYNERCOM is a registered trademark of Synercom Technology, Inc./
 /CONTACT: Mark K. Vise, vice president-finance of Synercom, 713-954-7000/
 (SYNR) CO: Synercom Technology, Inc. ST: Texas IN: CPR SU: ERN


GK -- NY068 -- 1551 02/21/92 17:15 EST
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Date:Feb 21, 1992
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