From: R.KITTREDGE@md-b.prime.com
Subject: (none)
Reply-To: Info-Prime@Blx-A.Prime.COM
Date: Thu, 19 Nov 1992 12:34:29 GMT

Name                       Volume    Hi/Ask   Low/Bid     Last  Change Update
-------------------------  ------    ------   -------   ------  ------ ------
SEQUOIA SYS INC COM            0      3.500     3.500    3.500   0.000  11/06*

 1 OTC  11/18 1858  SEQUOIA SYSTEMS LOSES $9.19 MILLION IN FIRST QUARTER

MARLBOROUGH, MA (NOV. 18) BUSINESS WIRE - Sequoia Systems Inc. (NASDAQ:SEQSE)
Wednesday announced its financial results for the first fiscal 1993 quarter,
ending Sept. 27, 1992.
   Revenue for the first quarter of 1993 totaled $9,916,000.  The net loss for
the three-month period was $9.19 million, or $1.09 per common share.  The net
loss for the first quarter of 1993 includes approximately $3 million of
restructuring charges and certain reserves provided for professional fees,
inventory obsolescence and uncollectable accounts receivable.
   In addition, the company expensed approximately $700,000 of underabsorbed
manufacturing overhead due to reduced levels of production which should continue
for the near term.
   In releasing these results, the company has noted the following: the company
has not released its restated audited fiscal 1992 results or filed its Annual
Report on Form 10-K due to the ongoing review by the company and its auditors.
The restatement of the previously filed financial statements is necessary to
properly reflect certain revenues recorded by the company.
   For purposes of the 1993 first-quarter results, the company has utilized its
best estimate of the yet-to-be-restated June 30, 1992 balance sheet.  The June
30, 1992 balance sheet as presented herein reflects all adjustments anticipated
by the company but may be subject to further revision as a result of the current
audit.
   No comparison to the prior-year income statement is made as the company and
its auditors have not completed a review of all potential adjustments to revenue
recognized for that period.
   The company previously announced that it is in default under its bank credit
agreement and expects to encounter reduced liquidity in the near term.  As of
Sept. 27, 1992, cash and cash equivalents totaled $4,757,000, of which $3
million represented bank debt incurred during the quarter.  Cash and cash
equivalents totaled $6.21 million as of June 30, 1992.
   As previously announced, the company continues to seek additional financing
to fund its operations and is considering all other alternatives.  Since the
conclusion of the first quarter, the company has reduced its workforce by
approximately 25% and has instituted various cash conservation measures.
   Sequoia designs, markets, manufactures and supports high-performance,
fault-tolerant computers for on-line transaction processing and other
interactive applications in which systems availability, fast response times and
data integrity are critical.  Sequoia provides on-line service  and maintenance
support to its worldwide customer base.
   The company has established strategic partnerships with dominant suppliers
such as Hewlett-Packard, Samsung, Sumitomo Electric and Toshiba Corp.  Major
customers include manufacturers, distributors, financial institutions, insurance
companies, telecommunications operations and federal agencies.
    CONTACT:  Sequoia Systems Inc., Marlborough
    John Murzycki, 508/480-0800, ext. 1522