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SYSTEMS CENTER ANNOUNCES FIRST QUARTER RESULTS, ADOPTS NEW ACCOUNTING STANDARDS

 SYSTEMS CENTER ANNOUNCES FIRST QUARTER RESULTS,
 ADOPTS NEW ACCOUNTING STANDARDS
 RESTON, Va., April 27 /PRNewswire/ -- Systems Center, Inc. (NYSE: SMX), announced today that revenue for the first quarter of 1992 rose 15 percent to $31,063,000. Earnings (before the cumulative effect of a change in accounting for income taxes under FAS 109) were 5 cents per share on a fully diluted basis. Earnings after the cumulative effect of the tax accounting change were $1.39 per share. Earnings for the first quarter of 1991 were 5 cents per share.
 First quarter net income (before the cumulative effect of the change in accounting for income taxes) rose 3 percent to $573,000 from $554,000 in 1991. All 1992 figures reflect the adoption of Statement of Position 91-1 (SOP 91-1), a new accounting standard for software revenue recognition. The 1991 figures have been restated to reflect this change in accounting method.
 In making the announcement, Chairman and CEO Robert E. Cook stated: "First quarter revenues showed accelerated growth compared with the fourth quarter and established a new record for the quarter, even though two large opportunities did not close as anticipated. Both are expected to close in the second quarter. With a significant new product flow scheduled for release through the rest of 1992, we are optimistic about the outlook for the year."
 SOP 91-1 requires the company to recognize revenue from post contract customer support, including revenue that is bundled with an initial licensing fee, over the period that the services are to be provided. G. Gordon M. Large, senior vice president and CFO, stated, "While SOP 91-1 has an impact on the company's balance sheet and income statement, it is important to note that it has no impact on the company's cash flow or operations." The company adopted the new standard retroactively as of Jan. 1, 1990, and all previously reported financial statements subsequent to that date have been restated to reflect this change. Restated net income per share for 1991 was 29 cents, compared to 53 cents reported under prior accounting rules.
 In the first quarter of 1992, the company adopted Statement of Financial Accounting Standards No. 109 (FAS 109) Accounting for Income Taxes. The adoption of FAS 109 resulted in the company recording a $17 million tax benefit, representing the cumulative effect of the change in accounting for income taxes.
 Both accounting changes adopted in the first quarter of 1992 affected the company's net worth. The effect of SOP 91-1 resulted in a decrease in net worth of $28.1 million, while the cumulative effect of the adoption of FAS 109 was to increase net worth by $17 million. As of March 31, 1992, the company's net worth (including Redeemable Preferred Stock) was $39.6 million.
 Systems Center, Inc., develops, markets and supports systems and network software. The company's products assist in the automation and control of mixed computing environments and are marketed in 60 countries worldwide.
 SYSTEMS CENTER, INC., AND SUBSIDIARIES
 Consolidated Statements of Income
 Quarter Ended March 31,
 1992 1991
 (as restated)
 Net Revenues $31,063,337 $26,999,058
 Income before cumulative
 effect of accounting change 573,400 554,335
 Cumulative effect of change in
 method of accounting for
 income taxes (FAS 109) 17,000,000 --
 Net Income 17,573,400 554,335
 Less: Preferred Dividends (269,269) --
 Net income available
 to common shareholders $17,304,131 $ 554,335
 Primary Earnings Per Share:
 Income before cumulative effect
 of accounting change $0.03 $0.05
 Cumulative effect of change
 in method of accounting
 for income taxes 1.55 --
 Primary Earnings Per Share $1.58 $0.05
 Weighted Average Common Shares
 and Common Equivalent Shares
 Outstanding 10,931,000 10,144,000
 Fully Diluted Earnings Per Share:
 Income before cumulative effect
 of accounting change $0.05 $0.05
 Cumulative effect of change in
 method of accounting
 for income taxes 1.34 --
 Fully Diluted Earnings Per Share $1.39 $0.05
 Weighted Average Common Shares
 and Common Equivalent Shares
 Outstanding 12,668,000 10,144,000
 SYSTEMS CENTER, INC.
 1991 Earnings Restated for the Retroactive Adoption of SOP 91-1
 (In millions except per share amounts)
 As Previously Reported
 01 '91 02 '91 03 '91 04'91 Total '91
 Net revenues $27.2 $29.1 $31.2 $38.3 $125.8
 Net income 0.5 0.3 1.5 4.0 6.3
 Earnings per
 common share:
 Primary $0.05 $0.03 $0.12 $0.34 $0.55
 Fully diluted -- -- -- $0.31 $0.53
 As Restated
 01 '91 02 '91 03 '91 04'91 Total '91
 Net revenue $27.0 $30.3 $30.7 $34.8 $122.8
 Net income 0.6 1.4 1.0 0.6 3.6
 Earnings per
 common share:
 Primary $0.05 $0.14 $0.07 $0.03 $0.29
 Fully diluted -- -- -- -- --
 -0- 4/27/92
 /CONTACT: G. Gordon M. Large, senior vice president & CFO, Systems Center, 703-264-8371/
 (SMX) CO: Systems Center ST: Virginia IN: CPR SU: ERN


MH -- DC048 -- 3422 04/27/92 17:37 EDT
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Date:Apr 27, 1992
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