PRI AUTOMATION, INC.
Billerica, MA
(508)-670-4270

ALEXANDRIA, Va., July 24, 1996/FOOLWIRE/ --- PRI AUTOMATION <% if gsSubBrand = "aolsnapshot" then Response.Write("(NASDAQ: PRIA)") else Response.Write("(NASDAQ: PRIA)") end if %> today reported net income of $0.46 per share for the just-completed fiscal third quarter, missing First Call consensus estimates of $0.48 per share. These results were $0.15 better than the year-ago period and up $0.02 sequentially.

Sales in the third quarter were $28.4 million, up 72% over the same period last year, $16.5 million. Gross margins as a percentage of sales for the third quarter were 48.4%, up 0.5% over the same period last year. Last nine month gross margins are 48.6%, up 0.9% from last year's nine month gross margin.

Net Income for the third quarter rose 80% to $3.5 million over $2.0 million last year. For the nine months, net income was up 99% at $10.0 million versus $5.0 million last year. These numbers could have been better according to Mitch Tyson. He said that $1.0 million in topline revenue was missed because overloaded suppliers could not get them materials as quickly as PRI needed. It was noted that expasion of the supplier base is a goal going forward.

EXPANSION

Very strong bookings activity and a healthy balance sheet enable PRI to expand in the near future. PRI's backlog is a little over $100 million for the first time ever. PRI has $76.3 million in working capital and enjoys no long term debt. Cash and equivalents are currently at $48.5 million, up $2.5 million, and their cash collection methods are more aggressive. DSO stands at 61 days.

Markets in Asia and Europe will be expanded as will PRI's product lines all around. FAB projects in Taiwan and Singapore are in the works for the next four to six quarters. Sales and support staff are being sent abroad now to grow business and ensure follow up business. Follow up business accounts for approximately one third of their revenue. PRI mentioned that as much as 40% of their bookings came from companies that had previously done business with rival companies.

In terms of pricing, PRI is willing to push margins to gain market share and win repeat customers. As a result, margins may suffer slightly in the next two to three quarters as international markets are expanded. Currently only 10% of PRI revenue comes from abroad, though this number will improve with international expansion.

PRI Automation, headquartered in Billerica, Mass., combines advanced robotic technology with materials handling software to automate the transport, storage and handling of silicon wafers used to make microprocessors, memory chips and other types of integrated circuits.

PRI systems -- which include overhead monorails, wafer pod stockers, reticle stockers, software, and factory simulation and other services -- maximize wafer yield and equipment utilization in a wide range of semiconductor manufacturing environments.

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