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WYLE POSTS RECORD SECOND QUARTER SALES; LOWER INCOME REFLECTS EXPANSION-RELATED START-UP COSTS

 EL SEGUNDO, Calif., Aug. 24 /PRNewswire/ -- Reflecting the strong performance of its Electronics Marketing Group, Wyle Laboratories (NYSE: WYL) registered a 16 percent increase in second quarter sales from the prior year to a new all-time quarterly high. As anticipated, net income for the period was lower due to start-up costs incurred in opening nine new facilities in connection with a major expansion program.
 Charles M. Clough, chairman and chief executive officer, commented: "As previously announced, we are significantly increasing the market coverage of Wyle's electronics distribution operations into key eastern and mid-western markets. This expansion program is progressing well, with all of our nine new divisions open, staffed and generating revenues. We're particularly pleased by the quality and experience of the people who have joined our expansion team.
 "The Electronics Marketing Group, excluding the new expansion locations, continued to generate solid operating results during the quarter. Without the expansion-related costs, the group's profits show a healthy increase over the prior year."
 For the quarter, consolidated net income amounted to $2,800,000, equal to 23 cents per share, compared with $3,812,000, or 37 cents per share (34 cents fully diluted) last year. Second quarter sales were $147.6 million, up from $127.6 million one year ago.
 Income for the first half was $7,337,000, equal to 59 cents per share, excluding a one-time non-cash charge recorded in the first quarter of $3,193,000, or 26 cents per share, for an accounting change relating to postretirement benefits other than pensions. Income in the prior-year's second quarter totaled $7,020,000, or 67 cents per share (62 cents fully diluted). Sales for the first six months showed a 14 percent improvement to $285.3 million from $250.3 million in the corresponding period last year.
 Clough continued: "Our record second quarter sales performance reflected the strength of the semiconductor market and rapidly growing demand for Wyle's value-added services. Supporting our drive into new markets across the country, we continue to focus on quality and customer service, productivity, cost control and asset management as a basis for our ongoing success.
 "The Electronics Marketing Group posted a 20 percent increase in second quarter sales over the prior year to a record $125.7 million. Operating income for the quarter of $4,736,000 was down from last year due to start-up costs related to the expansion program.
 "Our kitting and turnkey manufacturing operation continued to produce record gains in quarterly revenues and incoming order levels, reflecting rising demand from customers who seek competitive cost and time-to-market advantages by outsourcing inventory handing and assembly requirements.
 "Additionally, sales of application-specific integrated circuits (ASICs) and other programmable products reached all-time highs. Such semiconductors are offered through our five IDEAL(R) centers that provide semiconductor design, programming and testing services, which allow our customers to develop customized products to differentiate themselves in their markets."
 Clough continued: "Second quarter sales of the Scientific Services & Systems Group decreased slightly to $22.0 million compared to last year. Operating income also declined from the prior year due primarily to heavy investments in new business development initiatives, principally in automotive, support services and international markets, in order to offset shrinking demand for testing services provided to the aerospace and defense markets.
 "The Scientific Services & Systems Group is in contention for a number of significant future programs. Although the group continues to operate in a highly competitive environment, we are encouraged by the increasing number of engineering, support services and turnkey project opportunities in our markets."
 Clough concluded: "The semiconductor market continues strong overall. Demand for value-added services is gaining strength and momentum from the increasing desire of many customers to realize the cost-reducing competitive advantages offered by such programs.
 "While earnings for the next few quarters will continue to be impacted by costs associated with our expansion program, we expect those investments to be well-rewarded. Our progress to date has been rapid and encouraging. Over the longer term, Wyle should become a substantially larger company with an expanded profit potential to generate increased shareholder value."
 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)
 Second Quarter Ended Six Months Ended
 July 31, July 31,
 1993 1992 1993 1992
 Net sales $147,649,000 $127,599,000 $285,273,000 $250,263,000
 Costs and
 expenses 143,238,000 121,597,000 273,773,000 239,209,000
 Income before
 income taxes
 and accounting
 change 4,411,000 6,002,000 11,500,000 11,054,000
 Income taxes 1,611,000 2,190,000 4,163,000 4,034,000
 Income before
 accounting
 change 2,800,000 3,812,000 7,337,000 7,020,000
 Cumulative
 effect of
 accounting
 change for
 postretirement
 benefits other
 than pensions --- --- (3,193,000) ---
 Net income $2,800,000 $3,812,000 $4,144,000 $7,020,000
 Income Per Share:
 Primary
 Income before
 accounting
 change $.23 $.37 $.59 $.67
 Cumulative effect
 of accounting
 change for post-
 retirement
 benefits other
 than pensions --- --- ($.26) ---
 Net income $.23 $.37 $.34 $.67
 Fully diluted(a) N/A $.34 N/A $.62
 Average common
 and common
 equivalent
 shares(a) 12,332,000 10,433,000 12,342,000 10,410,000
 Sales and Income
 by Group
 Sales
 Electronics
 Marketing $125,690,000 $105,080,000 $237,706,000 $201,636,000
 Scientific
 Services &
 Systems 21,959,000 22,519,000 47,587,000 48,627,000
 Total $147,649,000 $127,599,000 $285,273,000 $250,263,000
 Income
 Electronics
 Marketing $4,736,000 $6,324,000 $11,901,000 $11,369,000
 Scientific
 Services &
 Systems 1,285,000 1,771,000 3,007,000 3,909,000
 Operating
 income 6,021,000 8,095,000 14,908,000 15,278,000
 General
 corporate
 expenses (1,612,000) (1,430,000) (3,358,000) (2,811,000)
 Interest
 income
 (expense), net 2,000 (663,000) (50,000) (1,413,000)
 Income before
 income taxes
 and accounting
 change $4,411,000 $6,002,000 $11,500,000 $11,054,000
 (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- 8/24/93
 /CONTACT: The Foristall Co., 213-626-4524, for Wyle Laboratories/
 (WYL)


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

LS-LM -- LA002 -- 5316 08/24/93 08:31 EDT
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Date:Aug 24, 1993
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