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TRICORD SYSTEMS POSTS RECORD THIRD QUARTER AND YTD RESULTS

 PLYMOUTH, Minn., Oct. 20 /PRNewswire/ -- Tricord Systems, Inc., (NASDAQ: TRCD), a leading supplier of network superservers, today reported revenues and net income for the third quarter and nine months ended Sept. 30, 1993. Revenues for the third quarter were $21,765,000 up 159 percent from the $8,390,000 reported in the third quarter of 1992 and 41 percent higher than the $15,458,000 reported for the second quarter of 1993.
 Third quarter net income was $2,470,000 or 18 cents per share, compared to a net income of $218,000 or 2 cents per share for the third quarter of 1992, and 59 percent higher than the $1,558,000 reported for the second quarter of 1993.
 Revenues for the nine months ended Sept. 30, 1993 were $50,874,000 compared to $22,045,000 for the same period in 1992, an increase of 131 percent. Net income for the first nine months of 1993 was $4,874,000 or 40 cents per share, compared to a net loss of $3,827,000 or $3.09 per share for the comparable period in 1992.
 "During the third quarter, the company experienced greater than planned revenues from its OEM channels with OEM business accounting for 46 percent of total revenues," said James D. Edwards, Tricord's president and CEO. "Because of the lower gross margins on OEM business, the gross margin as a percentage of revenues posted for the third quarter decreased to 36 percent. However, because of the lower operating expenses associated with OEM business, the company's operating income as a percentage of revenues for the third quarter was on target."
 Tricord Systems, Inc., designs, manufactures and markets the PowerFrame family of enterprise servers for use in all network applications from file serving and LAN consolidation to compute- intensive client/server applications, and in all environments from the small workgroup to the corporate IS data center. Tricord's PowerFrame products provide an "open system" design combined with industry-leading performance, scalability and reliability to meet the needs of the network computing market, the fastest growing segment of the networking market.
 TRICORD SYSTEMS, INC.
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited)
 (In thousands, except per share data)
 Three months ended Nine months ended
 9/30/93 9/30/92 9/30/93 9/30/92
 Revenues $21,765 $8,390 $50,874 $22,045
 Cost of goods
 sold 13,983 4,794 31,704 15,234
 Gross margin 7,782 3,596 19,170 6,811
 Operating expenses:
 Research and
 development 1,270 827 3,436 2,619
 Sales and
 marketing 3,635 1,899 9,106 5,216
 General and
 administrative 475 482 1,720 2,168
 -- 5,380 3,208 14,262 10,003
 Operating income
 (loss) 2,402 388 4,908 (3,192)
 Other income
 (expense), net 224 (170) 388 (635)
 Income (loss)
 before income
 taxes 2,626 218 5,296 (3,827)
 Provision for
 income taxes (156) -- (422) --
 Net income (loss)$2,470 $218 $4,874 ($3,827)
 Net income (loss)
 per share $.18 $.02 $.40 ($3.09)
 Average shares
 outstanding 13,480 9,568 12,285 1,238
 -0- 10/20/93
 /CONTACT: Greg Barnum or Joanne Mathais, of Tricord Systems, 612-557-9005/
 (TRCD)


CO: Tricord Systems, Inc. ST: Minnesota IN: CPR SU: ERN

DB-CP -- MN005 -- 4435 10/20/93 09:32 EDT
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Publication:PR Newswire
Date:Oct 20, 1993
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