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TELEMATICS INTERNATIONAL REPORTS RECORD FIRST QUARTER REVENUES AND INCOME

 FORT LAUDERDALE, Fla., April 21 /PRNewswire/ -- Telematics International, Inc. (NASDAQ: TMAX), announced today record net income for the first quarter of 1993 of $1,882,000 or $.11 per share, up $998,000 or 113 percent vs. $884,000 or $.05 per share for the comparable 1992 period. Revenues for the first quarter of 1993 were $16,103,000, up $874,000 or 6 percent over $15,229,000 in the corresponding 1992 period, with international revenues up 13 percent and domestic revenues down 2 percent.
 Income from operations for the three months ended March 31, 1993 was $1,436,000, up $435,000 or 43 percent over $1,001,000 in the corresponding 1992 period. This is attributable to a $1,062,000 increase in the gross profit margin, largely due to higher revenue levels, which was partially offset by a $627,000 increase in operating expenses due primarily to decreased software capitalization, and increased advertising and professional fees.
 First quarter 1993 net income includes an $887,000 or $.05 per share increase in net income due to a change in accounting principle, while net income for the comparable period in 1992 included an extraordinary tax credit of $435,000 or $.02 per share. The $887,000 included in net income for the first quarter of 1993 represents the cumulative effect of a change in the method of accounting for income taxes as required by FAS 109, "Accounting for Income Taxes." As permitted under FAS 109, prior years' financial statements have not been restated.
 William A. Hightower, president and chief executive officer, stated, "The company achieved record first quarter revenues of $16.1 million, up approximately $.9 million, a 6 percent increase over the same period in the prior year. Although worldwide economic conditions remain unpredictable, we are pleased by our improving performance over last year's levels, particularly in Europe and Latin America. We believe the company's existing wide area networking products and recently introduced frame relay access, adaption and backbone platforms for the Network FrameXchange product line will continue to be positively received in the marketplace. Net income was approximately $1.9 million or $.11 per share during the quarter, up 113 percent from the same period in the prior year. The company's financial position continues to strengthen with cash at approximately $19.6 million, working capital up $2.0 million to $37.5 million and a current ratio of 6:1 due to continued asset and expense management."
 Founded in 1982, Telematics designs, manufactures, sells and supports a complete line of wide area networking products designed for voice and data communications applications and networks worldwide. This includes a full range of programmable packet switching systems, frame relay systems, access communications processors and T1/E1 networking multiplexers. Telematics, headquartered in Fort Lauderdale, Fla., has approximately 370 employees worldwide with facilities in five US locations, Basingstoke, England, Frankfurt, Germany and Paris.
 TELEMATICS INTERNATIONAL, INC.
 CONSOLIDATED BALANCE SHEETS
 (In thousands)
 March 31, Dec. 31,
 1993 1992
 (Unaudited) (Audited)
 ASSETS
 Current assets:
 Cash and cash equivalents $ 19,588 $ 19,414
 Accounts receivable, net 16,638 15,477
 Inventories 7,133 6,329
 Refundable income taxes 283 330
 Deferred income taxes 368 ---
 Prepaid expenses and other 1,048 1,051
 Total current assets 45,058 42,601
 Equipment and leasehold
 improvements, net 4,099 3,991
 Software production costs, net 7,182 7,076
 Deferred income taxes 772 ---
 Other assets 1,014 1,584
 $ 58,125 $ 55,252
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $ 1,209 $ 2,048
 Accrued compensation 1,866 2,075
 Accrued expenses and other 4,067 2,587
 Income taxes payable 398 35
 Deferred income taxes 53 398
 Total current liabilities 7,593 7,143
 Long-term deferred facility costs 1,047 992
 Total liabilities 8,640 8,135
 Shareholders' equity:
 Preferred stock, $1.00 par value;
 authorized 5,000,000 shares,
 issued none --- ---
 Common stock, $.01 par value;
 authorized 24,000,000 shares,
 issued 17,285,234 at March 31,
 1993 and 17,181,434 at
 Dec. 31, 1992 173 172
 Capital in excess of par value 52,288 51,803
 Treasury stock at cost, 559,000
 shares in 1992 (1,587) (1,587)
 Retained earnings (deficit) (1,389) (3,271)
 Total shareholders' equity 49,485 47,117
 $ 58,125 $ 55,252
 TELEMATICS INTERNATIONAL, INC.
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands, except per share data)
 Three Months Ended
 March 31, March 31,
 1993 1992
 Sales:
 Systems $ 13,335 $ 12,713
 Service 2,768 2,516
 16,103 15,229
 Operating costs and expenses:
 Systems cost of sales 4,495 4,653
 Service cost of sales 1,748 1,778
 Product development 2,915 2,608
 Sales and marketing 3,724 3,593
 General and administrative 1,785 1,596
 14,667 14,228
 Income from operations 1,436 1,001
 Other income (expense):
 Interest income 159 127
 Interest expense --- (1)
 Foreign exchange
 gain (loss) 18 (137)
 Other (171) (14)
 6 (25)
 Income before income
 tax provision extraordinary
 credit and cumulative effect
 of change in accounting method 1,442 976
 Provision for income taxes 447 527
 Income before extraordinary
 credit and cumulative effect
 of change in accounting method 995 449
 Extraordinary tax credit resulting
 from utilization of loss
 carryforwards --- 435
 995 884
 Cumulative effect of change in
 accounting method 887 ---
 Net income $ 1,882 $ 884
 Earnings per share:
 Income before extraordinary
 credit and cumulative effect
 of change in accounting method $ .06 $ .03
 Extraordinary credit --- .02
 Cumulative effect of change in
 accounting method .05 ---
 Net income $ .11 $ .05
 Weighted average shares outstanding 17,666 17,109
 -0- 4/21/93
 /CONTACT: Miriam K. Frazer, chief financial officer and corporate secretary of Telematics International, 305-772-3070/
 (TMAX)


CO: Telematics International, Inc. ST: Florida IN: CPR SU: ERN

JB-JJ -- FL002 -- 8476 04/21/93 08:25 EDT
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Date:Apr 21, 1993
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