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TEL electronics POSTS THIRD QUARTER LOSS; COMPANY ANTICIPATES RECORD 1992 REVENUES

 TEL electronics POSTS THIRD QUARTER LOSS;
 COMPANY ANTICIPATES RECORD 1992 REVENUES
 AMERICAN FORK, Utah, Oct. 20 /PRNewswire/ -- TEL electronics inc. (NASDAQ: TELS) today reported overall softness in demand by the lodging industry for new telephone management systems has slowed sales and led to a third quarter earnings loss.
 Revenue in the third quarter 1992, ended Sept. 30, totaled $634,549 vs. $874,955 in the year-earlier quarter. The third quarter loss was $131,283, compared with earnings of $95,721 in 1991, reflecting a $31,422 extraordinary gain from income tax loss carryforward.
 Gross revenues for the nine months ended Sept. 30 totaled $2,131,910 up from $2,045,738 in the year-earlier period. Nine- months net income showed a loss of $62,780 vs. income of $57,593 in the same period 1991, which reflected an extraordinary income tax loss carryforward of $16,148.
 John Gunter, president and chief executive officer, said, "The increase in revenues year-to-date reflect the underlying company strength. Despite a summer slowdown in new orders caused by economic uncertainty affecting one of our key markets, lodging, the long-term outlook remains favorable.
 "In response to a sluggish economic environment, we have intensified our sales efforts and targeted them on opening new markets for call accounting systems," Gunter said.
 "During the third quarter we noticed that sales of add-on and upgrade equipment to our existing customer base of more than 10,000 installed systems has been steady. However, our market surveys tell us that hotels and motels need enhanced phone management systems to improve guest services and internal controls thus boosting profitability. Although most of our systems pay for themselves in well less than a year, our salespeople are finding the lodging industry is postponing many purchase decisions.
 "In anticipation of a slower third quarter -- particularly after our strong second, we began in August to trim expenditures, which should enhance our fourth quarter results.
 "We completed four new products in the third quarter which should be contributors to future earnings, and these should be brought to market in the coming weeks. Investment in providing better products and services for the company's future will continue through our R&D subsidiary, Micromega," Gunter concluded.
 TEL electronics inc. designs, produces and sells proprietary microprocessor-based telephone call accounting, voice processing and related systems for use by the lodging industry, professional firms, general business, military and government agencies.
 TEL electronics inc.
 Summary of Operations
 (Unaudited)
 Three Months Ended Sept. 30,
 1992 1991
 Consolidated sales $634,549 $874,955
 Income (loss) before
 extraordinary item ($131,283) $64,299
 Extraordinary item
 (income tax loss
 carryforward) --- $31,422
 Net income (loss) ($131,283) $95,721
 Earnings (loss)
 per share ($0.08) $0.06
 Weighted average shares 1,713,322 1,688,322
 Nine Months Ended Sept. 30,
 1992 1991
 Consolidated sales $2,131,910 $2,045,738
 Income (loss) before
 extraordinary item ($62,780) $41,420
 Extraordinary item
 (income tax loss
 carryforward) --- $16,148
 Net income (loss) ($62,780) $57,593
 Earnings (loss)
 per share ($0.045) $0.034
 Weighted average shares 1,713,322 1,688,322
 Selected Balance Sheet Summary
 (Unaudited)
 Sept. 30, 1992
 Current assets $1,086,991
 Total assets 2,008,071
 Current liabilities 473,645
 Long-term debt 249,904
 Shareholders' equity 1,284,522
 Total liabilities and
 shareholders' equity $2,008,071
 -0- 10/20/92
 /CONTACT: Stephen Nelson, CFO of TEL electronics, 801-756-9606; or John H. Shaw or William F. Coffin of The Financial Relations Board, 818-783-2400, for TEL electronics/
 (TELS) CO: TEL electronics inc. ST: Utah IN: CPR TLS SU: ERN


JB-JL -- LA012 -- 2036 10/20/92 09:08 EDT
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Date:Oct 20, 1992
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