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WYLE REPORTS RECORD SALES IN FOURTH QUARTER; EARNINGS UP SHARPLY FROM THIRD QUARTER

 WYLE REPORTS RECORD SALES IN FOURTH QUARTER;
 EARNINGS UP SHARPLY FROM THIRD QUARTER
 EL SEGUNDO, Calif., Feb. 25 /PRNewswire/ -- Results of Wyle Laboratories (NYSE: WYL) continued to gain strength in the fourth quarter ended Jan. 31, 1992, as sales reached a new quarterly high. Earnings improved markedly from the third quarter, but were less than in the prior year.
 Net income for the quarter totaled $2,795,000, equal to 28 cents per share (26 cents fully diluted), compared with $3,247,000, or 33 cents per share (30 cents fully diluted) in the corresponding quarter of the previous fiscal year. Fourth quarter sales amounted to $121.7 million, an increase of 7 percent from $113.5 million a year ago.
 Operating results showed strong sequential improvement over the third quarter. Earnings grew by 51 percent during the period on a 10 percent increase in sales.
 For the fiscal year, net income was $9,668,000, equal to 95 cents per share (90 cents fully diluted), compared with last year's record earnings of $12,694,000, or $1.28 per share ($1.18 fully diluted). Sales for the year of $453.4 million surpassed last year's record of $449.5 million.
 Charles M. Clough, chairman, president and chief executive officer, said: "Wyle continues to gather momentum in quarterly sales and earnings. Record semiconductor shipments in the fourth quarter evidence the company's success in providing our customers with unique value-added services, which include kitting/turnkey, as well as design, programming and testing of user-configurable devices.
 "Fourth quarter sales for the Electronics Marketing Group increased 8 percent over the previous year to a record $98.6 million. Income of $4,450,000 showed a sharp improvement from the third quarter, but was 21 percent lower than in the same quarter a year ago.
 "Compared to the prior year, our increased sales for the quarter were not sufficient to offset the effect of lower gross margins. While revenues from 486 microprocessors, along with a broad base of other semiconductor product families, rapidly increased during the quarter, pricing of 386 microprocessors was severly pressured, as manufacturers in the highly competitive personal computer market continued to seek lower component costs for their products.
 "Wyle's kitting and turnkey services continue to be the group's fastest growing business area. These services help customers enhance operating efficiency while supporting their just-in-time inventory programs through the supply of 'production ready' components in kit form or delivery of fully assembled and tested products.
 "We also continue to experience increasing demand for application-specific integrated circuits (ASICs), particularly in the high-end, user-configurable products of Actel and Altera.
 "Our computer systems business showed considerable improvement from the immediately preceding quarter. This progress was driven by customer demand for multi-user systems from Digital Equipment, along with higher mass storage sales."
 Clough continued: "Despite unsettled conditions in the aerospace and defense markets, our Scientific Services & Systems Group posted increased sales and income for both the fourth quarter and full year. Income for the quarter rose 14 percent to $1,794,000 on a 4 percent gain in sales to $23.1 million.
 "The group recently received a $1.2 million contract award from China's Ministry of Railways for design, fabrication, testing and installation of a vibration test system for railroad cars. Other new business received during the quarter included contracts for development and qualification tests on components and systems associated with the National Aerospace Plane, conventional weapons and nuclear power plants."
 Clough concluded: "Wyle's strategic focus on high-complexity products and value-added services continued to serve us well in the past year's weak electronics market. We are convinced that this proven strategy, along with our strong financial position, will support our future success.
 "Looking ahead, we are optimistic about our prospects for growth, particularly as the semiconductor market improves, and we look forward to higher sales and profits in the coming fiscal year."
 WYLE LABORATORIES
 Consolidated Statements of Operations
 (Unaudited)
 (In thousands except per share data)
 Fourth Quarter ended Year ended
 Jan. 31, Jan. 31,
 1992 1991 1992 1991
 Net sales $121,679 $113,515 $453,435 $449,538
 Costs
 and expenses 117,312 108,349 438,329 429,258
 Income before
 income taxes 4,367 5,166 15,106 20,280
 Income taxes 1,572 1,919 5,438 7,586
 Net income $2,795 $3,247 $9,668 $12,694
 Income per share:
 Primary $.28 $.33 $.95 $1.28
 Fully diluted $.26 $.30 $.90 $1.18
 Average common and
 common equivalent
 shares 10,158 9,923 10,184 9,906
 Sales and income
 by group
 Sales:
 Electronics
 marketing $98,603 $91,332 $359,868 $358,921
 Scientific services
 & systems 23,076 22,183 93,567 90,617
 Total $121,679 $113,515 $453,435 $449,538
 Income:
 Electronics
 marketing $4,450 $5,637 $15,444 $23,000
 Scientific services
 & systems 1,794 1,570 7,664 5,929
 Operating income 6,244 7,207 23,108 28,929
 General corporate
 expenses (1,291) (1,433) (5,576) (5,981)
 Interest expense,
 net (586) (608) (2,426) (2,668)
 Income before
 income taxes $4,367 $5,166 $15,106 $20,280
 -0- 2/25/92
 /CONTACT: John Foley of The Foristall Co., 213-626-4524, for Wyle Laboratories/
 (WYL) CO: Wyle Laboratories ST: California IN: CPR SU: ERN


EH-DM -- LA001 -- 2302 02/25/92 11:31 EST
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Publication:PR Newswire
Date:Feb 25, 1992
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