Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, March 27, 1992                   TAG: 9203270184
SECTION: BUSINESS                    PAGE: A-7   EDITION: METRO 
SOURCE: GEORGE KEGLEY BUSINESS EDITOR
DATELINE:                                 LENGTH: Medium

FIBERCOM REPORTS ITS 1ST SALES DECLINE

The company told stockholders the downturn in 1991 sales and earnings could be blamed on the recession, cutbacks in federal spending and slower market growth than expected.

Net income before taxes came to $922,270, down 34 percent from $1.4 million a year ago. Revenues, were off 0.4 percent to $22.3 million, compared with $24.4 million in 1990.

Dick Popp, president, called 1991 "a difficult year."

The bright side of his report was an increase of more than 40 percent in the company backlog, $33 million worth of orders extending through 1996.

Two events that reduced sales were completion of production of a Navy fiber-optic system and the cancellation of a $1.4 million order for a channel extension, Popp said.

In 1992, board Chairman Albert Bender and Popp said they expect business to start slowly and build steadily through the year. Research and development efforts should bring significant revenue gains starting in 1993, they said.

The company's employment stands at 190, reduced mainly by attrition from 200 a year ago, Popp said. A small number of software engineers will be added to work on a $17.2 million contract with the Boeing Commercial Airplane Group, the largest order in the company's history, he said. That contract is for an internetworking system for Boeing's 777, its next-generation plane.

About $1.5 million of the company's sales were in overseas markets. The company has an engineering office in England and a sales representative has just returned from Germany.

Commercial orders accounted for 31 percent of the business; the rest was government projects.

A FiberCom network will be used by TV Guide to produce its magazine through layout and production. Unisys is buying a channel extension and installing its company logo for resale as a connection with high-speed systems over fiber-optic cable, Popp said.