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WYLE LABORATORIES' PROFITS SURGE 41 PERCENT IN FIRST QUARTER

 EL SEGUNDO, Calif., May 25 /PRNewswire/ -- Wyle Laboratories (NYSE: WYL) registered a 41 percent increase in profits for the first quarter ended April 30, 1993, driven mainly by significantly higher operating results at its Electronics Marketing Group.
 Income for the quarter, before an accounting change, surged to $4,537,000, equal to 37 cents per share, vs. $3,208,000, or 31 cents (29 cents fully diluted) in the prior year. Sales for the first quarter grew 12 percent to $137.6 million from $122.7 million a year ago.
 During the first quarter, the company recorded a one-time, non- cash charge of $3,193,000 after tax, or 26 cents per share, for the cumulative effect of an accounting change relating to postretirement benefits other than pensions. As a result, net income for the quarter amounted to $1,344,000, or 11 cents per share.
 Charles M. Clough, chairman and chief executive officer, said: "Our favorable first quarter results reflect the overall strength of the semiconductor market and growing demand for our value-added services. We continue to focus on improving quality and service levels to customers while enhancing our productivity and maintaining a tight rein on costs.
 "The Electronics Marketing Group recorded a 16 percent improvement in sales over the prior year, and operating income for the period advanced significantly by 42 percent to $7,165,000. Our core semiconductor business was very strong and up substantially from the prior year, particularly for application-specific integrated circuits (ASICs). Kitting and turnkey manufacturing revenues reached new all-time highs for the quarter driven by rapidly rising demand from customers seeking to outsource their inventory handling and assembly requirements.
 "Shipments of low-margin PC-related components, primarily microprocessors and disk drives, declined from previous quarters due to an oversupply of these products in our markets. Computer product sales reflected lower shipments of multiuser systems and workstations as customers await price/performance improvements anticipated from Alpha-based systems."
 Commenting on the company's recently announced major expansion program, Clough said: "We've previously indicated our intention to expand Wyle's geographic coverage into other markets in America. We are now accelerating our expansion plans to capitalize on the opportunities resulting from further recent consolidation within our industry. Eight new Wyle facilities are planned to be operational in key eastern and midwestern markets during the second half of the year.
 "We intend to differentiate Wyle in these new markets in the same way we've successfully done in our present locations. We will specialize in semiconductors and computer systems products and provide value-added services that enhance the competitiveness of our customers. Wyle is uniquely positioned to bring a strong semiconductor product line and meaningful value-added services into these markets that will offer significant benefits to customers."
 Clough continued: "Results of our Scientific Services & Systems Group remained on a relatively even course as the group continues the challenging process of adjusting its operations to changing conditions, particularly declining aerospace and defense markets. Group sales of $25.6 million were modestly lower than in the year- earlier period, and income of $1,722,000, while less than in the prior year, was basically in line with income levels reported in seven out of the past eight quarters.
 "Higher revenues in the first quarter for nuclear power-related engineering and testing services, along with growing international business levels, offset the impact of intense competition in the aerospace and defense markets. In this difficult business environment, the group is focusing on new business development and cost control while continuing to provide superior quality and service to customers."
 Clough concluded, "We're very enthusiastic about the opportunities we see ahead. The industry outlook for the semiconductor market remains highly favorable, reflecting strong demand, extended lead times on many devices and low inventory levels at the customer base.
 "Our ambitious expansion program is a landmark event for Wyle's future. While investments in new facilities will result in start-up costs which will impact our earnings over the next few quarters, such investments are central to Wyle's growth strategy. We expect to create substantial added shareholder value from this effort over the longer term."
 Wyle Laboratories is one of the nation's leading marketers of high-technology electronic products, specializing in semiconductors, computer systems and related value-added services. The company is also a major supplier of research, engineering, testing and support services to the aerospace, defense and energy industries.
 WYLE LABORATORIES
 Consolidated Statements of Operations
 (Unaudited)
 First Quarter Ended
 April 30,
 1993 1992
 Net sales $137,624,000 $122,664,000
 Costs and expenses 130,535,000 117,612,000
 Income before income taxes and
 accounting change 7,089,000 5,052,000
 Income taxes 2,552,000 1,844,000
 Income before accounting change 4,537,000 3,208,000
 Cumulative effect of accounting
 change for postretirement
 benefits other than pensions 3,193,000 ---
 Net income $1,344,000 $3,208,000
 Income per share:
 Primary
 Income before accounting change $.37 $.31
 Cumulative effect of accounting
 change for postretirement
 benefits other than pensions (.26) ---
 Net income $.11 $.31
 Fully diluted(a) N/A $.29
 Average common and common
 equivalent shares(a) 12,352,000 10,386,000
 Sales and income by group
 Sales
 Electronics Marketing $112,016,000 $96,556,000
 Scientific Services & Systems 25,608,000 26,108,000
 Total $137,624,000 $122,664,000
 Income
 Electronics Marketing $7,165,000 $5,045,000
 Scientific Services & Systems 1,722,000 2,138,000
 Operating income 8,887,000 7,183,000
 General corporate expenses (1,746,000) (1,381,000)
 Interest expense, net (52,000) (750,000)
 Income before income taxes
 and accounting change $7,089,000 $5,052,000
 (a) During the fourth quarter ended Jan. 31, 1993, a total of 1,622,057 shares of Wyle Laboratories' common stock were issued upon conversion as a result of the company's call for redemption of its 6 1/4 Percent Convertible Subordinated Debentures due 2002.
 -0- 5/25/93
 /CONTACT: The Foristall Co., 213-626-4524, for Wyle Laboratories/
 (WYL)


CO: Wyle Laboratories ST: California IN: CPR SU: ERN

BP-JL -- LA004 -- 1991 05/25/93 08:31 EDT
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Date:May 25, 1993
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