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Kurzweil Applied Intelligence releases unaudited financial results for the quarter ended October 31, 1996

WALTHAM, Mass.--(BUSINESS WIRE)--Dec. 6, 1996--Kurzweil Applied Intelligence, Inc. (NASDAQ:KURZ) today released its unaudited financial results for the third quarter ended October 31, 1996.

The Company reported total revenue of $2,447,000 for the quarter ended October 31, 1996, a 20% increase over the total revenue of $2,041,000 reported for the same period of the prior year. Increases in shipments of Kurzweil Voice for Windows and Kurzweil Clinical Reporter were responsible for the revenue increase.

The Company reported a loss of $682,000 or ($0.07) per share for the quarter ended October 31, 1996 as compared to a loss of $769,000 or ($0.11) per share for the same period of the prior year.

Thomas E. Brew, Jr. the Company's President and CEO said, "We are encouraged by the increase in revenues this quarter in comparison to the prior year, as well as to the prior quarter. These increases are a result of our new products which were released earlier this year. Unfortunately, we have continued to incur losses as we have maintained our commitment to delivering new and improved products. We believe this continued investment is necessary to be competitive in our markets."

The Company reported total revenue of $6,354,000 and a net loss of $2,715,000 or ($0.33) per share, for the nine months ended October 31, 1996, as compared to total revenue of $7,264,000 and a net loss of $1,304,000, or ($0.19) per share, for the same period of the prior year.

Except for the historical information contained herein, the matters discussed in this press release are forward looking statements. Such forward looking statements involve known and unknown risks, uncertainties and other factors such as the availability and market acceptance of new products and product reliability, which may cause the actual results, performance or achievements of Kurzweil Applied Intelligence, Inc. to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. For further information, refer to the risk factors detailed from time to time in the Company's filings with the Securities and Exchange Commission.

The Company has attached the financial statements for the three and nine month periods of fiscal year 1997, and fiscal year 1996.

Kurzweil Applied Intelligence, Inc., headquartered in Waltham, Mass., was founded in 1982. The Company develops, markets, and supports automated voice recognition systems used to create documents and interact with personal computers by voice. Kurzweil VOICE is an easy-to-use voice recognition system for Windows-based PCs; and Kurzweil VoicePad Pro for Windows is a voice-enabled word processing application. The Company's medical reporting systems, VoiceMED and Kurzweil Clinical Reporter, are used in over 500 healthcare institutions nationwide.

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