* To: SLUG@Sunset.AI.SRI.COM * Subject: 1/8/93: SYMBOLICS EXPECTS DISAPPOINTING SECOND QUARTER RESULTS * From: David H. Kaufman * Date: Thu, 14 Jan 1993 15:17-0500 Contact: Bill Clarke (508) 287-1351, Richard Waltz (508) 287-1049 SYMBOLICS EXPECTS DISAPPOINTING SECOND QUARTER RESULTS CONCORD, Mass. January 8, 1993 -- Symbolics, Inc. (NASDAQ: SMBX), today announced that it expects revenues for its second quarter which ended December 31, 1992 to be approximately $1.4 million less than the previous quarter. The Company also expects to report a significantly reduced cash balance at quarter end. As a result, the Company will need to effect a significant reduction and restructuring of its liabilities. The company is considering all alternatives to achieve such reduction and restructuring, and plans to meet shortly with its principal creditors. Kenneth J. Tarpey, Symbolics' President and Chief Executive Officer, stated, "The revenue decline this past quarter is due to several factors that will have important implications for the second half of our fiscal year. There has been a curtailment of our business with certain key customers, which in prior quarters accounted for nearly 10 percent of our gross revenue. Our product business also fell off sharply this past quarter, with product revenues down 29 percent. We attribute the decline in product revenue to increased competitive pressures and the general economic slowdonw. As a result of this decline, we are, inconjunction with reviewing our financial alternatives, implementing dramatic cost reductions in an attempt to focus on out core strengths." Symbolics Inc. (NASDAQ: SMBX), headquartered in Concord, Massachusetts, is a leading provider of symbolic processing technology used in sophisticated applications, including on-line decision support, expert systems and scheduling and planning. The Company provides software and hardware tools and consulting services to some of the world's largest corporations, devising application solutions to mission-critical business problems in the government, telecommunications, manufacturing, utilities and transportation industries.