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WYLE LABORATORIES THIRD QUARTER SHOWS GAINS OVER SECOND QUARTER, BUT RESULTS TRAIL LAST YEAR

 WYLE LABORATORIES THIRD QUARTER SHOWS GAINS
 OVER SECOND QUARTER, BUT RESULTS TRAIL LAST YEAR
 EL SEGUNDO, Calif., Nov. 25 /PRNewswire/ -- Sales and net income of Wyle Laboratories (NYSE: WYL) showed improvement in the third quarter from the reduced levels of the second quarter, but were still below prior-year results, according to Charles M. Clough, chairman, president and chief executive officer.
 Clough commented: "After nearly two years of uninterrupted sales and profit growth, results were adversely affected, starting in the second quarter, by an abrupt and sharp decline in pricing of 386 microprocessors sold to personal computer manufacturers by franchised electronic distributors such as Wyle. While depressed microprocessor pricing continued to constrain sales and gross margins in the third quarter, we have recently been encouraged by a broadly based strengthening of semiconductor shipments as evidenced by improved sales and order levels in September and October."
 For the three months ended Oct. 31, 1991, net income amounted to $1,855,000, equal to 18 cents per share (primary and fully diluted), compared with $3,357,000, or 34 cents per share (31 cents fully diluted), a year ago. Third quarter sales were $110.7 million, compared with last year's record of $114.0 million.
 Net income for the first nine months totaled $6,873,000, equal to 67 cents per share (64 cents fully diluted), vs. $9,447,000, or 95 cents per share (88 cents fully diluted) in the prior period. Sales for the year-to-date period were $331.8 million, a decrease from $336.0 million in the comparable period of the previous year.
 Commenting on the Electronics Marketing Group, Clough said: "Measured against last year's very strong third quarter, group sales decreased 3 percent to $89.2 million and operating income fell 51 percent to $3,021,000. The effect of Intel's 386 microprocessor price decline tends to overshadow the fact that Wyle is outperforming the industry in shipments of other semiconductor products in a sluggish electronics market and a weak economy. Most recently, our average daily shipments have been increasing, with October representing the highest month since March of this year.
 "It is also encouraging to note that the oversupply situation for Intel 386 microprocessors in the 'gray market' is gradually working itself out. However, we believe it will take a few more months for the supply imbalance to be corrected. Demand for Intel's 486 microprocessor, the next generation product, is strong and should continue to build significantly.
 "In this difficult environment, we are continuing our efforts to enhance profitability and operating efficiencies while concentrating on customer service and executing our proven business strategy.
 "The group's strategic focus on high-complexity, user configurable product lines and related value-added services continues to serve us well in a sluggish market. Looking at shipment trends for the quarter, our broad-line suppliers contributed significantly, and user configurable products showed particular strength. Wyle achieved record semiconductors shipments for Actel, Altera, AMD, Motorola and Signetics in the quarter.
 "Aided by gains in mass storage products, overall computer products shipments strengthened from the second quarter. However, sales remained below the prior year, reflecting the fact that prices of computer systems, such as the key Digital Equipment line, have generally declined.
 "Wyle's JIT/kitting and turnkey services continue to represent one of our highest growth opportunities, and again posted record results in the third quarter. Our Customer Support Center offers these services to help our customers enhance their operating efficiencies and support just-in-time inventory programs through the supply of 'production ready' components in kit form."
 Clough added: "The Scientific Services & Systems Group's operating results have held steady in a challenging and uncertain environment for its major aerospace, defense and commercial nuclear power markets. Sales of $21.5 million were about even with the prior year, and operating income improved modestly to $1,865,000.
 "The Chinese Academy of Railway Sciences recently selected Wyle for a $5.3 million contract over an 18-month period to provide test facilities for a Rail Track Dynamics Laboratory. Also, Wyle was awarded an initial $2.3 million from the Electric Power Research Institute for nuclear valve testing services on a contract which could reach a value in excess of $9 million."
 Clough concluded: "We see positive signs in both core businesses. The recent increase in shipments and order activity at the Electronics Marketing Group is encouraging, and fourth quarter profits, while expected to be less than in the prior year, should show further improvement over the third quarter.
 "We continue to anticipate growth in semiconductor shipments in 1992. Given recovery in the industry and the general economy, Wyle Laboratories should generate increasing quarterly sales and profits next fiscal year."
 Wyle Laboratories is one of the nation's leading marketers of high-technology electronic components and computer systems. The company is also a major supplier of research, engineering and testing services to the aerospace, defense and energy industries.
 WYLE LABORATORIES
 Consolidated Statements of Operations
 (Unaudited)
 (In thousands except per share data)
 Third Quarter Ended Nine Months Ended
 Oct. 31, Oct. 31,
 1991 1990 1991 1990
 Net sales $110,716 $114,006 $331,756 $336,023
 Costs
 and expenses 107,817 108,645 321,017 320,909
 Income before
 income taxes 2,899 5,361 10,739 15,114
 Income taxes 1,044 2,004 3,866 5,667
 Net income $1,855 $3,357 $6,873 $9,447
 Income per share:
 Primary $.18 $.34 $.67 $.95
 Fully diluted $.18 $.31 $.64 $.88
 Average common and
 common equivalent
 shares 10,137 9,888 10,193 9,900
 Sales and income
 by group
 Sales:
 Electronics
 marketing $89,210 $92,393 $261,265 $267,589
 Scientific services
 & systems 21,506 21,613 70,491 68,434
 Total $110,716 $114,006 $331,756 $336,023
 Income:
 Electronics
 marketing $3,021 $6,150 $10,994 $17,363
 Scientific services
 & systems 1,865 1,506 5,870 4,359
 Operating income 4,886 7,656 16,864 21,722
 General corporate
 expenses (1,360) (1,519) (4,285) (4,548)
 Interest expense,
 net (627) (776) (1,840) (2,060)
 Income before
 income taxes $2,899 $5,361 $10,739 $15,114
 -0- 11/25/91
 /CONTACT: Van Holland, senior VP of Wyle Laboratories, 310-322-1763/
 (WYL) CO: Wyle Laboratories ST: California IN: CPR SU: ERN


AL-SE -- LA009 -- 6806 11/25/91 11:31 EST
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Date:Nov 25, 1991
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