STOCKREPORTS		 Network Computing Devices, Inc. NASDAQ Symbol NCDI
19-JUL-97 Industry:
Computers (Networking)		 Summary: This company designs, makes and markets a family of systems that enable users to access multiple applications simultaneously across a network.

Recent Price 8.75
52 Wk Range 15.38 - 3.75		 Yield Nil
12-Mo. P/E 62.5

Quantitative Evaluation:
Outlook (1 Lowest - 5 Highest)
NA
Fair Value
NA
Risk
HIGH
Earn/Div Rank
NR
Technical Evaluation:
BULLISH since 06/97
Rel. Strength Rank (1 Lowest - 99 Highest)
3
Insider Activity
Neutral

Business Profile 26-JUN-97

Following losses in recent years, NCDI has posted two consecutive profitable quarters. The improved results are the result of a turnaround program initiated in 1996. The program included recombining software and systems into one business unit; the sale of the Mariner and Z-Mail product lines, thereby reducing R&D and SG&A expense; and other cost containment measures. A recent contract with IBM has helped increase OEM sales, and gross margins have benefited from decreased semiconductor component costs. Sales of non-OEM products declined in the first quarter, reflecting a transition in the company's sales organization, as well as the transfer of monitor sales to resellers.

Operation Review 26-JUN-97

Revenues in the first quarter of 1997 advanced 2.1%, year to year, reflecting 47% growth in software licenses and services, mainly on higher sales and support of Wincenter. Hardware products and services fell 7.9%, on a decline in the HMX product line and a drop in the selling price of Explora network computers, partly offset by revenues from the IBM contract, which made up 17% of total revenues in the quarter. Gross margins widened, on lower material costs (primarily semiconductor components), and with lower R&D and SG&A expenses, net income of $852,000 ($0.05 a share, on 16% more shares) contrasted with a net loss of $260,000 ($0.02).

Stock Performance 18-JUL-97n

In the past 30 trading days, NCDI's shares have declined 23%, compared to a 7% rise in the S&P 500. Average trading volume for the past five days was 429,540 shares, compared with the 40-day moving average of 236,305 shares.

Key Stock Statistics

Dividend Rate/Share Nil
Shs. outstg. (M) 17.1
Avg. daily vol. (M) 0.257
Tang. Bk. Value/Share 4.01
Beta NM
Shareholders 200
Market cap. (B) $0.150
Inst. holdings 36%
Value of $10,000 invested 5 years ago:NA

Fiscal Year Ending Dec. 31

Revenue (Million $)
1997 1996 1995 1994 1993 1992
Q1 31.06 30.44 37.53 38.18 35.01 23.57
Q2 34.36 29.33 35.03 41.16 35.16 28.80
Q3 NA 27.95 33.51 39.42 36.07 32.53
Q4 NA 32.89 33.26 42.11 38.02 35.40
Year NA 120.6 139.3 160.9 144.3 120.3

Earning Per Share ($)
1997 1996 1995 1994 1993 1992
Q1 0.05 -0.02 0.02 -0.58 0.16 0.12
Q2 0.04 -0.37 Nil 0.01 0.13 -0.02
Q3 NA Nil -0.30 -0.14 0.13 0.15
Q4 NA 0.06 -0.02 0.03 0.14 0.16
Year NA -0.32 -0.25 -0.68 0.55 0.43

Dividend Data: No cash dividends have been paid.

Business Summary 26-JUN-97

Network Computing Devices, Inc. designs, makes and markets a family of products that expand and speed the flow of information to PCs throughout a network of heterogeneous computing devices. All company technologies are based on open systems, where elements of the computing structure are distributed to make the best use of different hardware and applications. NCDI offers network computing systems and PC connectivity products.

Network computing systems consist of desktop devices that are used to access information and applications residing elsewhere on a local area or wide area network. The company's network computer product line offers graphical multi-window interfaces with various screen sizes and a range of software that can be used in different operating system environments, such as Windows and UNIX. Products include the HMX and HMXpro24, high-performance network computers targeted at the UNIX workstation market; the Explora and Explora Pro, low-end network computers targeted at the PC replacement, terminal replacement and enterprise internet markets; WinCenterPro, Windows application server software that runs on Intel-based computers; and NCDware, NCDI's proprietary enhanced version of the industry standard X Window software.

PC connectivity products consist of Marathon, a suite of TCP/IP products for Windows-based PCs that offer networking functionality not currently available from Microsoft; and PC-Xware, which offers a powerful solution for providing full access to UNIX-based systems from Windows-based PCs.

Following the February 1994 acquisition of Z-Code Software Corp., the company offered a family of e-mail software. In June 1996, NCDI sold its Z-Mail division to NetManage.

R&D focuses on enhancing the existing line of network computer and software products, and on developing new hardware and software products that incorporate the latest improvements in technology. R&D spending totaled $14,930,000 (12.3% of revenues) in 1996, versus $13,119,000 (9.4%) in 1995 and $10,486,000 (6.5%) in 1994.

International sales accounted for 33% of net revenues in each of 1996 and 1995. Sales to OEMs provided 15% of total sales in each year.

Important Developments

Apr. '97 The company said that directors had authorized the repurchase of up to 1.0 million common share through April 30, 1998.

Capitalization

Long Term Debt: $253,000 of lease obligs. (3/97).

Per Share Data ($)
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
Tangible Bk. Val. 3.96 4.22 4.60 5.08 4.43 3.92 NA NA NA NA
Cash Flow -0.04 0.03 -0.41 0.79 0.65 0.33 0.49 -0.02 NA NA
Earnings -0.32 -0.25 -0.68 0.55 0.43 0.14 0.36 -0.06 -0.50 NA
Dividends Nil Nil Nil Nil Nil Nil Nil Nil Nil NA
Payout Ratio Nil Nil Nil Nil Nil Nil Nil Nil Nil NA
Prices - High 11 1/4 12 8 3/4 19 16 3/4 NA NA NA NA NA
- Low 2 7/8 3 7/8 3 1/4 6 1/4 9 5/8 NA NA NA NA NA
P/E Ratio - High NM NM NM 35 39 NA NA NA NA NA
- Low NM NM NM 11 22 NA NA NA NA NA

Income Statement Analysis (Million $)
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
Revs. 121 139 161 144 120 61.1 52.3 14.5 Nil NA
Oper. Inc. -12.6 1.7 6.3 16.6 16.7 5.0 7.0 -0.9 NA NA
Depr. 4.6 4.5 4.3 3.7 3.2 2.4 1.6 0.5 NA NA
Int. Exp. 0.1 0.2 0.3 0.4 0.3 0.3 0.2 0.1 NA NA
Pretax Inc. -1.7 -6.2 -7.3 13.8 10.6 3.2 6.4 -0.6 -1.6 NA
Eff. Tax Rate NM NM NM 37% 43% 43% 31% NM Nil NA
Net Inc. -5.2 -4.0 -10.8 8.7 6.1 1.8 4.4 -0.6 -1.6 NA

Balance Sheet & Other Fin. Data (Million $)
1996 1995 1994 1993 1992 1991 1990 1989 1988 1987
Cash 35.6 36.2 31.2 35.6 43.5 16.7 17.7 NA NA NA
Curr. Assets 78.9 86.0 90.4 83.1 83.8 38.6 37.5 NA NA NA
Total Assets 85.7 97.5 101 94.2 91.1 42.9 42.3 20.8 3.8 NA
Curr. Liab. 18.0 28.5 27.6 15.6 24.1 10.5 11.6 NA NA NA
LT Debt 0.3 1.0 1.5 2.0 1.9 1.3 1.4 0.6 0.1 NA
Common Eqty. 67.4 68.0 71.9 76.5 65.1 31.2 29.3 15.2 3.4 NA
Total Cap. 67.7 69.0 73.4 78.5 67.0 32.5 30.7 15.9 3.5 NA
Cap. Exp. 2.2 3.2 2.7 2.5 2.3 1.2 2.3 1.2 NA NA
Cash Flow -0.7 0.5 -6.5 12.3 9.3 4.2 6.0 -0.2 NA NA

Curr. Ratio 4.4 3.0 3.3 5.3 3.5 3.7 3.2 NA NA NA
% LT Debt of Cap. 0.5 1.4 2.0 2.5 2.9 4.0 4.5 4.1 2.4 NA
% Net Inc.of Revs. NM NM NM 6.0 5.1 3.0 8.4 NM NM NA
% Ret. on Assets NM NM NM 9.2 4.1 4.3 14.1 NM NM NA
% Ret. on Equity NM NM NM 12.1 14.4 5.8 18.9 NM NM NA

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--350 N. Bernardo Ave., Mountain View, CA 94043. Tel--(415) 694-0650. Website--http://www.ncd.com Chrmn--P. Preuss. Pres & CEO--R. G. Gilbertson. EVP & CFO--R. G. Morin. Dirs--J. A. Bradley, R. G. Gilbertson, P. Greer, S. A. MacDonald, E. L. Marinaro, P. Preuss. Transfer Agent & Registrar--Chase Trust Co. of California, SF. Incorporated--in California in 1988. Empl-- 321. S&P Analyst: Jim Corridore


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