profit of $572,440 -- up by 10 percent ($52,340) on 1991.

The company's operating income increased by 11.9 percent ($507,071) to $4.76 million, while its operating expenses went up by 12.6 percent ($350,274) to $3.13 million.

Aministration expenses went up by 10.9 percent ($104,357) to $1.06 million.

Earnings per share for the 12 months to October 31, 1992, came to $1.91, compared with $1.73 for 1991.

The company's assets dropped by 1.1 percent ($20,053) to $1.84 million, while its liabilities went down by 12.9 percent ($52,493) to $354,497.

BCS paid dividends of $540,000 during the year, an increase of 38.5 percent ($150,000) on the previous 12 months.

Retained earnings at the end of the year came to $1.03 million, compared with $995,346 the year before.

In their report to shareholders, BCS president Mr. Cyril Rance and general manager Mr. Walter Ingham said the company experienced the impact of two price wars during the year.

"First, there was the war among the various personal computer product manufacturers and the other with local competitors as all vendors attempted to gain the same market share,'' they said.

"During the year, we sold extensive networked computer systems to two customers. These networks included personal computers, AS/400s, RS/6000s and professional services.

"Sales of this magnitude cannot be repeated on an annual basis as most of the large businesses in Bermuda have fairly current IBM technology installed.'' They said The Computer Centre had "another excellent year', winning the "IBM Blue Ribbon'', which is awarded by IBM to business partners who have consistently met projections and contributed to their success, for the third successive year.

They added: "The market for PCs has been changing and many businesses are now providing employees with desk-top workstations which are often linked by local area networks.

"This greater investment in equipment has resulted in our customers becoming much more price sensitive.

"Future success at the Computer Centre will depend on our ability to stay ahead of the competition on price, performance and the delivery of new products which better meet our customers' needs.

"The year ahead will be extremely challenging but we believe IBM products and performance will meet the competition head on and combined with IBM's innovative technology will enable us to increase computer sales and maintain our dominant market share.'' BCS 1992 RESULTS PROFIT $572,440 OPERATING INCOME $4.76 M OPERATING EXPENSES $3.13 M ADMINISTRATION EXPENSES $1.06 M ASSETS $1.84 M LIABILITIES $354,497.