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January 5, 1988

SCIENTIFIC MICRO SAYS FOURTH QUARTER SALES WILL BE DISAPPOINTING

By CBR Staff Writer

Scientific Micro Systems Inc, Mountain View, California, warns that its sales for the fourth quarter to fall below previous expectations and be somewhat less than those reported for the third quarter. The slippage is despite continued strong demand for its products, and principally results from delays in manufacturing, notably because of the need to resolve a potential copyright dispute with IBM over the BIOS in some of Scientific’s products – now settled, as well as delays caused by technical modifications to other products, in particular modifications needed to be in full compliance with the Federal Communications Commission’s permitted radiation standards, as well as the difficulty in getting sufficient quantities of some components. Scientific Micro expects that profits for the fourth quarter will be significantly lower than the $1.3m on sales of $34.5m achieved in the third quarter, while sales will be between $33m and $34.5m. This time last year, it reported $309,000 net on $17.6m sales. Scientific Micro manufactures ASIC chips, VLSI components, data controllers and disk subsystems for IBM Personals, for Apple Macs, and for SCSI, DEC, Multibus and VMEbus machines.

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