STOCKREPORTS		 IMP, Incorporated NASDAQ Symbol IMPX
21-JUN-97 Industry:
Electronics (Semiconductors)		 Summary: This company is a leading supplier of high-integration and programmable, analog and mixed-signal integrated circuits and wafer manufacturing services.

Recent Price 1.81
52 Wk Range 11.25 - 1.69		 Yield Nil
12-Mo. P/E NM

Quantitative Evaluation:
Outlook (1 Lowest - 5 Highest)
NA
Fair Value
NA
Risk
HIGH
Earn/Div Rank
B-
Technical Evaluation:
BULLISH since 01/97
Rel. Strength Rank (1 Lowest - 99 Highest)
13
Insider Activity
NA

Business Profile 11-JUN-97

IMP's shares have dropped sharply from their May 1996 high, reflecting continued soft product demand and losses in recent quarters. In the second quarter of FY 97 (Mar.), a number of customers delayed shipment of orders originally scheduled for delivery; to match production with demand, the company reduced its work force about 23%, and announced plans to shut down several factories. In addition, charges were incurred to exit the gate array design and manufacturing business. IMP has announced that it is the subject of several lawsuits alleging that the company and several officers and directors issued misleading statements regarding IMP's business, and sold stock at artificially inflated prices. The company has denied the allegations vigorously, but has noted that the lawsuits could have a material adverse effect on its business, by distracting management from operations of the company.

Operation Review 11-JUN-97

Based on a preliminary report, net revenues in FY 97 declined 16%, reflecting continued market weakness. Gross margins narrowed, and the gross profit fell 55%. After higher R&D and SG&A costs, a restructuring charge of $1,862,000, and greater interest expenses, a net loss of $12,367,000 ($0.44 a share) contrasted with net income of $5,469,000 ($0.20).

Stock Performance 20-JUN-97n

In the past 30 trading days, IMPX's shares have declined 9%, compared to a 9% rise in the S&P 500. Average trading volume for the past five days was 92,920 shares, compared with the 40-day moving average of 157,718 shares.

Key Stock Statistics

Dividend Rate/Share Nil
Shs. outstg. (M) 28.1
Avg. daily vol. (M) 0.194
Tang. Bk. Value/Share 0.60
Beta 1.59
Shareholders 700
Market cap. (B) $0.051
Inst. holdings 9%
Value of $10,000 invested 5 years ago:$ 16,106

Fiscal Year Ending Mar. 31

Revenue (Million $)
1997 1996 1995 1994 1993 1992
Q1 23.53 16.51 13.47 12.80 13.60 10.30
Q2 18.21 18.51 15.13 11.22 14.00 10.60
Q3 15.13 20.03 15.73 11.40 14.10 11.80
Q4 8.03 21.77 15.42 12.81 14.20 13.10
Year 64.89 76.83 59.75 48.20 55.90 45.80

Earning Per Share ($)
1997 1996 1995 1994 1993 1992
Q1 0.09 0.02 Nil 0.01 Nil -0.15
Q2 -0.35 0.04 0.02 Nil 0.01 -0.07
Q3 -0.08 0.06 0.01 Nil 0.01 -0.02
Q4 -0.10 0.08 Nil Nil -0.11 -0.01
Year -0.44 0.20 0.03 0.01 -0.09 -0.25

Dividend Data: No cash has been paid.

Business Summary 11-JUN-97

IMP, Inc. is a supplier of high-integration, programmable analog and mixed CMOS integrated circuit (IC) solutions to the communications, computer, and industrial markets. IMP is the inventor of the Electrically Programmable Analog Circuit (EPAC) and is a technology leader in the field of programmable filters and read channel devices for mass storage applications. The company manufactures wafers at its fabrication facility in San Jose, CA, as well as in offshore foundries licensed to the IMP process technology. IMP also uses its facilities to provide wafer fabrication and full IC manufacturing services to other semiconductor vendors.

IMP began a transition from its historical business of custom application-specific integrated circuits (ASICs) in 1990, and now focuses primarily on application-specific standard products (ASSPs) and silicon foundry services. Foundry services manufactures ICs to customer specifications or designs and manufactures ICs in accordance with a customer's algorithms.

IMP shipped the industry's first EPAC products and development tools in early 1995. EPAC devices, the analog counterpart to the digital field programmable gate array, extend the benefits of higher levels of integration, fast time-to-market, reduced development costs and unique user-configurable functionality to analog and mixed signal designs.

In FY 95 (Mar.), IMP entered into distribution agreements with three firms to distribute the EPAC products: Wyle Laboratories in the U.S., Tekelec in Europe, and Macnica in Japan. Export sales, principally in Europe and the Pacific Basin, accounted for 5.8%, 21% and 18.2% of total revenues in FY 96, FY 95 and FY 94, respectively.

In FY 96, the product mix of component sales consisted of foundry services (73%) and ASSPs (27%). Rockwell International accounted for 33% of total sales in FY 96.

Important Developments

Feb. '97 The company announced a reduction of its work force by 39 employees (about 14% of the total), because of continuing softness in product demand. IMP added that revenues in the fourth quarter of FY 97 would fall significantly below those of the third quarter.

Capitalization

Long Term Obligations: $11,074,000 (3/97).
Options: To buy 2,319,000 shs. at $0.81 to $2.75 ea. (3/96).

Per Share Data ($)
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
Tangible Bk. Val. NA 0.94 0.71 0.67 0.64 0.73 0.98 1.79 1.70 1.70
Cash Flow NA 0.41 0.23 0.18 0.11 0.01 -0.53 0.36 0.21 0.33
Earnings -0.44 0.20 0.03 0.01 -0.09 -0.25 -0.80 0.08 0.01 0.16
Dividends Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
Payout Ratio Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil
Cal. Yrs. 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
Prices - High 23 1/2 9 3/4 2 7/16 3 2 5/8 2 2 5/8 2 1/2 4 1/2 8 1/4
- Low 2 1/8 1 5/16 1 1/4 1 1/8 7/8 1/2 7/16 1 3/16 1 7/8 2 5/16
P/E Ratio - High NM 49 81 NM NM NM NM 31 NM 52
- Low NM 7 42 NM NM NM NM 15 NM 14

Income Statement Analysis (Million $)
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
Revs. NA 76.8 59.8 48.2 55.9 45.8 51.3 69.2 52.5 48.9
Oper. Inc. NA 12.4 7.3 6.1 4.0 1.8 -3.7 9.1 5.3 10.2
Depr. NA 5.9 5.3 4.3 5.1 6.2 6.6 6.0 5.3 4.4
Int. Exp. NA 0.9 1.3 1.5 1.3 2.0 2.3 2.0 1.3 1.0
Pretax Inc. NA 5.6 0.8 0.4 -2.3 -6.1 -19.4 2.1 0.2 6.3
Eff. Tax Rate NA 1.90% Nil Nil Nil Nil Nil 4.80% Nil 37%
Net Inc. NA 5.5 0.8 0.4 -2.3 -6.1 -19.4 2.0 0.2 3.9

Balance Sheet & Other Fin. Data (Million $)
1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
Cash NA 9.0 8.5 7.6 8.2 9.2 11.6 15.2 16.5 22.8
Curr. Assets NA 33.5 30.2 25.2 25.3 32.1 34.1 42.6 39.6 40.1
Total Assets NA 50.7 41.3 36.4 36.1 46.1 54.2 63.8 59.7 54.5
Curr. Liab. NA 16.0 18.0 17.6 17.6 22.8 20.3 12.2 9.8 7.5
LT Debt NA 9.0 4.8 1.6 2.2 5.1 10.0 8.8 7.4 3.9
Common Eqty. NA 25.4 18.5 17.2 16.3 18.2 23.9 42.8 42.5 43.1
Total Cap. NA 34.4 23.3 18.8 18.6 23.3 33.9 51.6 50.0 47.0
Cap. Exp. NA 1.9 5.3 4.7 1.3 0.2 7.7 7.2 9.8 4.7
Cash Flow NA 11.4 6.0 4.7 2.8 0.1 -12.8 8.0 5.4 8.3

Curr. Ratio NA 2.0 1.7 1.4 1.4 1.4 1.7 3.5 4.0 5.3
% LT Debt of Cap. NA 26.1 20.6 8.8 12.1 22.0 29.4 17.0 14.8 8.3
% Net Inc.of Revs. NA 7.2 1.3 0.8 NM NM NM 2.9 0.3 8.1
% Ret. on Assets NA 11.9 2.0 1.1 NM NM NM 3.3 0.3 2.7
% Ret. on Equity NA 25.0 4.4 2.3 NM NM NM 4.8 0.4 4.3

Data as orig. reptd.; bef. results of disc. opers. and/or spec. items. Per share data adj. for stk. divs. as of ex-div. date. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked.

Office--2830 North First St., San Jose, CA 95134. Tel--(408) 432-9100. Website--http://www.impweb.com Chrmn--B. M. Carrington. Pres & CEO--D. Laws. CFO--G. Rassam. Dirs--B. M. Carrington, Z. Grinfas, C. S. Isherwood, D. Laws, P. Olson, G. Rassam, B. V. Vonderschmitt. Transfer Agent--Boston Equiserve. Incorporated--in California in 1981; reincorporated in Delaware in 1987. Empl-- 434. S&P Analyst: J. Robert Cho


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