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SEC Filings
10-Q
ARGON ST, INC. filed this Form 10-Q on 12/13/1995
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For the period ended October 31, 1995, the Company has limited the
recognition of credit for income taxes due to the cumulative losses
realized in recent years. The Company generated a valuation allowance of
$84,000 in the quarter ended October 31, 1995.  The valuation allowance
relates to net operating loss generated in the current fiscal year.

Note E- Revolving Credit

On October 31, 1995, the Company had a $1,700,000 line of credit with a
bank, with availability subject to a formula, bearing interest at one and
one-half percent above the bank's prime rate.  The formula is the
appraised value of the Company's building, $1,712,000, less the amount of
the mortgage plus 75% of qualified accounts receivable and 50% of
qualified unbilled accounts receivable.  As of October 31, 1995, total
availability was approximately $1,476,000 pursuant to this availability
formula.  The Company had an outstanding balance under this line of
credit of approximately $405,000 and $642,000 at October 31 and July 31,
1995 with an additional $1,029,420 of the line reserved to support
existing standby letters of credit at October 31 and July 31, 1995.

The line of credit agreement includes certain covenants requiring the
Company to maintain a minimum tangible effective net worth and minimum
liquid asset to current liability and debt coverage ratios.  The Company
was in compliance with these covenants at October 31, 1995.  Continued
compliance is dependent upon the Company receiving a substantial amount
of new business in the second quarter of fiscal 1996.

Note F - Earnings Per Share

The computation of net earnings per share is based on the weighted
average number of shares of common stock outstanding during the three
month periods ended October 31, 1995 and 1994.  The weighted average
number of shares used in the computation was 515,404 and 511,907 for the
three months ended October 31, 1995 and 1994, respectively, all of which
were issued and outstanding.  No adjustments were made to either net loss
or the number of shares outstanding for common stock equivalents in
calculating earnings per share as such adjustments would have been
antidilutive.

There was no material difference between primary and fully diluted
earnings per share for the periods ended October 31, 1995 and 1994.

M
anagement's Discussion  and Analysis  of Financial Condition and Results
of Operations

General

The Company manufactures products for, and performs development projects
in, the field broadly described as "remote sensing".  The principal
products manufactured by the Company are airborne imaging systems which
are installed in aircraft for acquisition of data on environmental
parameters.  A principal application of the Company's remote


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