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WEITEK REPORTS THIRD QUARTER PROFIT

 SUNNYVALE, Calif., Oct. 18 /PRNewswire/ -- Weitek Corp. (NASDAQ: WWTK) reported revenue of $9,750,000 and net income of $150,000 (2 cents per share) in its third quarter ended Oct. 2, 1993. Compared to the third quarter of 1992, these results represent a 62-percent increase over revenue of $6,000,000 and a turnaround from the net loss of $5,360,000 (70 cents per share).
 For the first nine months of 1993, Weitek posted revenue of $25,250,000 and a net loss of $2,035,000 (26 cents per share). Revenue in the first nine months of 1992 was $19,960,000 with a net loss of $9,520,000 ($1.25 per share).
 Revenue in the third quarter of 1993 increased by fifteen percent compared to the second quarter of 1993, while the $150,000 net income for the third quarter represents a $950,000 improvement over the net loss incurred in the prior quarter.
 Weitek also announced that President Barry Cox would assume the additional role of chief executive officer. "Barry's tenure at Weitek has marked a turnaround in our business; he has gotten Weitek back on track," commented Art Collmeyer, chairman of Weitek. "His role has evolved over the past eighteen months, and this appointment formalizes Barry's position as the Company's CEO."
 Cox, president and chief executive officer, stated "The third quarter of 1993 marks Weitek's return to profitability and the fourth consecutive quarter of revenue growth. This growth in revenue is attributable to the continued ramp in shipments of user interface products, paced by the Weitek Power 9000, coupled with initial production shipments of the Weitek SPARC POWER uP microprocessor." Gross margins improved to 52 percent in the third quarter of 1993, compared to 48 percent in the preceding quarter, reflecting manufacturing efficiencies and an improvement in product mix. Operating expenses in the third quarter were essentially flat compared to the second quarter of 1993, enabling Weitek to return to profitability.
 Cox continued, "We intend to build upon the market position achieved by our Power 9000 and plan on introducing our next generation of user interface products during the fourth quarter of 1993. The continued acceptance of our user interface products coupled with increased acceptance of the SPARC POWER uP microprocessor during the fourth quarter of 1993 will be necessary to continue the momentum built in the first three quarters of the year."
 Weitek makes processors and controllers that enhance the performance of standard operating systems, user interfaces and application software. The company's products are used to build faster, more intuitive desktop computers and peripherals.
 WEITEK CORP.
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands, except per share amounts)
 Three Months Ended Nine Months Ended
 Oct. 2, Sept. 26, July 3, Oct. 2, Sept. 26,
 1993 1992 1993 1993 1992
 Net revenue $ 9,750 $ 6,000 $ 8,500 $25,250 $19,960
 Cost of sales 4,714 4,997 4,405 12,616 11,942
 Gross margin 5,036 1,003 4,095 12,634 8,018
 Research and
 development 2,458 4,343 2,503 7,749 10,992
 Sales and
 marketing 2,002 2,046 1,955 5,627 6,672
 General and
 administrative 551 789 562 1,668 2,129
 Operating
 income (loss) 25 (6,175) (925) (2,410) (11,775)
 Other income 125 175 125 375 575
 Income (loss)
 before income
 taxes 150 (6,000) (800) (2,035) (11,200)
 Provision for
 (benefit of)
 income taxes --- (640) --- --- (1,680)
 Net income (loss) $ 150 $(5,360) $ (800) $(2,035) $(9,520)
 Earnings (loss)
 per share $ 0.02 $ (0.70) $ (0.10) $ (0.26) $ (1.25)
 Weighted average
 common shares
 and equivalents 8,875 7,696 7,834 7,855 7,627
 WEITEK CORP.
 CONSOLIDATED BALANCE SHEETS
 (In thousands)
 Oct. 2, July 3, Dec. 31,
 1993 1993 1992
 ASSETS
 Current assets:
 Cash and short-term
 investments $12,235 $14,465 $15,743
 Accounts receivable, net 6,790 4,381 2,562
 Inventories 3,357 1,135 1,494
 Income taxes receivable --- --- 2,337
 Deferred income taxes --- --- 59
 Prepaid expenses and other 514 675 543
 Total current assets 22,896 20,656 22,738
 Equipment and leasehold
 improvements, net 2,409 2,541 3,095
 Other assets 19 7 6
 $25,324 $23,204 $25,839
 LIABILITIES AND
 SHAREHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $ 5,020 $ 3,545 $ 4,600
 Accrued compensation
 and employee benefits 1,755 1,418 1,087
 Current portion of
 capitalized lease
 obligations --- --- 18
 Other current liabilities 739 713 902
 Total current liabilities 7,514 5,676 6,607
 Shareholders' equity:
 Common stock 21,037 20,905 20,424
 Retained earnings (deficit) (3,227) (3,377) (1,192)
 Total shareholders' equity 17,810 17,528 19,232
 Total $25,324 $23,204 $25,839
 -0- 10/18/93
 /CONTACT: Earl E. Fry, vice president of finance, Weitek Corp., 408-738-8400/
 (WWTK)


CO: Weitek Corp. ST: California IN: CPR SU: ERN

SG -- SJ003 -- 3543 10/18/93 16:07 EDT
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Date:Oct 18, 1993
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