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TENERA Announces Third Quarter Results and Management Change.

SAN FRANCISCO--(BUSINESS WIRE)--Nov. 7, 1997--TENERA Inc. (AMEX:TNR) announced today revenue for the third quarter ended Sept. 30, 1997 of $5.2 million and a net loss of $822 thousand or $0.08 net loss per share, compared to revenue of $5.6 million and a net loss of $680 thousand or $0.07 net loss per share, for the comparable period in 1996.

Revenue for the nine months ended Sept. 30, 1997 was $15.3 million with a net loss of $1.7 million or $0.17 net loss per share, compared to revenue of $18.9 million and a net loss of $565 thousand or $0.06 net loss per share for the comparable period in 1996. Although partially offset by lower direct costs and administrative expenses, the Company's lower revenue, and increased spending on software product and business development efforts in technologies subsidiary, resulted in the overall loss for the quarter and nine months ended Sept. 30, 1997.

Contracted backlog for active projects totaled an estimated $5.8 million as of Sept. 30, 1997, compared to $6.5 million as of June 30, 1997. During the third quarter, the Company received written contracts and orders having an estimated value of $4.6 million. The contracted sales activity primarily reflects the next three months' funding at the Department of Energy's Rocky Flats Environmental Technology Site ("Rocky Flats"), and an extension of a consulting contract with a large electric utility client.

The revenue decreased in the third quarter and first nine months of 1997, compared to a year ago, is primarily the result of a reduction in the Rocky Flats contract activity (due primarily to decreased funding at various DOE sites), partially offset by higher software revenue related to the National Railroad Passenger Corporation ("Amtrak") contract in the technologies subsidiary.

Direct costs were lower in the third quarter and first nine months of 1997, compared to a year ago, primarily as a result of the reduced revenue generation opportunities. General and administrative costs were lower in the third quarter and first nine months of 1997, as compared to the comparable periods in 1996, primarily reflecting lower administrative costs throughout the Company offset partially by increased sales staff and marketing expenditures in the technologies subsidiary.

These business development expenditures amounted to $347 thousand and $731 thousand in the third quarter and first nine months of 1997, respectively, compared to $88 thousand and $117 thousand for the same periods a year ago. The Company increased spending on the technologies subsidiary's software product development to $650 thousand in the third quarter, and $1.3 million in the first nine months of 1997 compared to $139 thousand and $396 thousand for the same periods a year ago.

As a part of the Company's ongoing efforts to control the significant amount of resources required by the Company's technologies subsidiary, the Board of Directors announced that, effective immediately, Michael Thomas will be focusing his efforts exclusively on that subsidiary. In that connection, Mr. Thomas has resigned from the Board and as Chief Executive Officer of the Company and will now be assisting the Board on a full time basis in maximizing the Company's investment in the technologies subsidiary. Members of senior management will assume Mr. Thomas' other responsibilities.

Statements contained in this press release which are not historical facts are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include fluctuations in customer demand, the timing and acceptance of new product introductions, and the availability of additional investment capital on terms favorable to the Company, or at all. Additional risks are detailed in the Company's filings with the Securities and Exchange Commission, including its most recent Form 10-K filed on March 27, 1997.

TENERA Inc. provides performance improvement and computerized maintenance management software and consulting for U.S. Government agencies and capital asset intensive industries. TENERA is a provider of creative and effective solutions to operational problems leading to improve performance for its clients through offices in California, Colorado and Connecticut. -0-
 (In thousands, except per share amounts)

 Qtr Ended Nine Months Ended
 9/30/97 9/30/96 9/30/97 9/30/96

Revenue $ 5,240 $ 5,586 $ 15,332 $ 18,878
Direct Costs 3,228 3,651 9,392 12,230
General and
 Expenses 2,209 2,595 6,580 7,207
Software Development
 Costs 662 139 1,315 395
Other Income 14 -- 35 21
Special Item -- -- -- 250
 Operating Loss (845) (799) (1,920) (683)
Interest Income, Net 23 43 96 118
 Net Loss Before
 Income Tax
 Benefit $ (822) (756) (1,824) (565)
Income Tax Benefit -- (76) (139) --
Net Loss $ (822) $ (680) $ (1,685) $ (565)
Net Loss per Share $ (0.08) $ (0.07) $ (0.17) $ (0.06)
Wtd. Average Shares
 O/S 10,123 10,192 10,123 10,267


Assets At 9/30/97 At 12/31/96

Cash and Cash Equivalents $ 1,457 $ 3,964
Accounts Receivable, Net 3,809 3,119
Other Current Assets 326 534
 Total Current Assets 5,592 7,617
Property and Equipment, Net 403 323
 Total Assets $ 5,995 $ 7,940

Liabilities and Stockholders' Equity

Accounts Payable $ 901 $ 1,026
Accrued Compensation and Related
 Expenses 1,902 2,036
 Total Current Liabilities 2,803 3,062
Total Shareholders' Equity 3,192 4,878
 Total Liabilities and
 Shareholders' Equity $ 5,995 $ 7,940


Jeffrey Hazarian/James Robison, 415/536-4744
COPYRIGHT 1997 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
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Publication:Business Wire
Date:Nov 7, 1997
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