#71. COMPUTER BUSINESS SUPPLIES INC.

6000 Executive Blvd. Rockville, Md. 20852 REVENUE: $17.8 million PROFITS: $53,000 EARNINGS PER SHARE: 6 cents DIVIDEND: None ASSETS: $8.3 million STOCKHOLDERS' DEFICIT: $1.5 million RETURN ON EQUITY: NA EXCHANGE: OTC EMPLOYES: 65 TOP EXECUTIVE: John W. Nucci, president and chairman of the board. FOUNDED: 1969

DESCRIPTION: Computer Business Supplies is a marketing firm representing business-forms manufacturers that either have no direct sales force or market a portion of their products through dealers.

DEVELOPMENTS: The company's revenue increased 10 percent for the fiscal year ended last Aug. 31, but net income for the firm continued to slip and was down 48 percent for the year. Management offered no particular reason for the depressed earnings. The erosion of profits continues in the current year, with net income of $65,000 reported for the six months ended Feb. 28, compared with net income of $127,000 for the similar period a year earlier. Revenue for the first half of the current year was $8.2 million compared with $9.9 million for the same period last year.

Computer Business Supplies initially reported a loss of $303,000 for fiscal 1984 but later restated results for the year showing a profit of $101,000 on revenue of $16.2 million.

The company expects to realize an extraordinary gain of approximately $300,000 in the third quarter as the result of disposing of Craftsman Press, an offset printing subsidiary, at the start of the current fiscal year. #72. BOWL AMERICA INC.

6446 Edsall Rd. Alexandria, Va. 22312 REVENUE: $17.3 million PROFITS: $1.6 million EARNINGS PER SHARE: $1.03 DIVIDEND: 40 cents ASSETS: $14.3 million STOCKHOLDERS' EQUITY: $11.9 million RETURN ON EQUITY: 15 percent EXCHANGE: Amex EMPLOYES: 750 TOP EXECUTIVES: C. Edward Goldberg, chairman; Leslie H. Goldberg, president. FOUNDED: 1958

DESCRIPTION: Bowl America operates 25 bowling centers, including 14 in the Washington area, four in Baltimore, two near Richmond and five in Florida. Revenue comes from food and beverages as well as bowling fees from the company's 908 lanes. Bowl America is the fifth-largest bowling chain in the country.

DEVELOPMENTS: Revenue and profits for Bowl America were relatively flat for the fiscal year ended June 30. Revenue climbed only 1 percent, and net income dropped 2 percent. However, the company managed to increase its dividend payout and to use internal financing for a 12-lane addition to one of its centers and completion of new corporate offices and a warehouse. The company also spent heavily to refurbish a number of its bowling centers.

For the first six months of the current fiscal year, ended Dec. 29, the company reported revenue of $8.6 million compared with $8 million in the same period last year. Net income for the first half was $596,770 (37 cents) compared with $528,169 (33 cents) for the same period a year earlier.

Bowl America increased the total number of lanes operated in 1985 from 896 to 908. Construction has started on another center near Richmond that will offset the closing of a center on Indian Head Highway in Prince George's County later this year when the company's lease on the property expires. #73. BRESLER & REINER INC.

401 M St. NW Washington, D.C. 20024 REVENUE: $17.3 million PROFITS: $3.2 million EARNINGS PER SHARE: $2.89 DIVIDEND: None ASSETS: $68.4 million STOCKHOLDERS' EQUITY: $27.3 million RETURN ON EQUITY: 11.7 percent EXCHANGE: OTC EMPLOYES: 135 TOP EXECUTIVES: Charles S. Bresler, chief executive officer; Burton J. Reiner, president. FOUNDED: 1971

DESCRIPTION: Bresler & Reiner is a real estate development and management company with construction projects under way in Maryland and Virginia. The company owns 530 apartment units and manages about 670 others. It also operates Waterside Mall in Southwest Washington and a motel in Camp Springs, Md. Recently, the company diversified into the equipment-leasing business, which has become a more significant part of its total corporate mix.

DEVELOPMENTS: Revenue for Bresler & Reiner for the fiscal year ended Dec. 31 increased 25 percent over the prior year. However, net income on the year-to-year comparison dropped 5 percent.

Last year, the company entered a joint venture with Sequoia Building Corp. of Falls Church for land development of four tracks in Maryland and Virginia. Home construction has been started on one of the four tracks and will commence on two more before year-end. Two nursing-home facilities also were added to the company's assets last year, one in New Jersey and the other in Pennsylvania, near Philadelphia. Company officials have identified this as a significant development, indicating that other such properties may be acquired this year. #74. IVERSON TECHNOLOGY CORP.

1359 Beverly Rd. McLean, Va. 22101 REVENUE: $17.2 million PROFITS: $1.8 million EARNINGS PER SHARE: 90 cents DIVIDEND: None ASSETS: $11 million STOCKHOLDERS' EQUITY: $7.2 million RETURN ON EQUITY: 4.4 percent EXCHANGE: OTC EMPLOYES: 75 TOP EXECUTIVES: Donald D. Iverson, president; John E. Cochran, executive vice president. FOUNDED: 1985

DESCRIPTION: Iverson is a new company that describes itself as a technical systems "integrator." The company modifies computers and peripheral products, primarily personal computers, printers and optical-character readers, to comply with the Tempest security system, a widely used data-security system in demand by government and industry.

The company has original-equipment manufacturing agreements with several major computer manufacturers, including IBM, Hewlett-Packard, Compuscan and Dataproducts. Iverson acquires products from these vendors at discounts of 25 percent to 50 percent; modifies the equipment to meet Tempest security requirements, and then sells it. Approximately 95 percent of the company's sales are to the government.

DEVELOPMENTS: Iverson's revenue jumped 179 percent in the fiscal year ended Dec. 31. The company's net income for the year was three times that in the prior year. Last July, the company made an initial stock offering of 170,000 common shares to secure $4.65 million in additional capital. About 60 percent of the company's stock still is held by Donald Iverson, the founder, and various trusts established by Iverson for his children.

The market for Iverson's security-modified computer and data-processing products continues to grow, and analysts estimate that it will exceed $1 billion by 1990.

In February, the company announced the opening of a Tempest research-and-development center in McLean and expansion of its modification and production center in Clearwater, Fla. The McLean facility is part of a broader corporate plan to reduce dependence on outside firms for Tempest research and bolster the company's internal capability to secure larger government contracts. The square footage of the Florida plant was increased 50 percent to accommodate expanded production of personal computer products, printers and optical readers.

Recently, Iverson Technology was included in the "Shadow 400" listing compiled by the American Association of Individual Investors. The listing includes stocks that have escaped the attention of Wall Street analysts but have outperformed both the OTC composite index and the Standard & Poor's 500 index. #75. GENEX CORP.

16020 Industrial Dr. Gaithersburg, Md. 20877 REVENUE: $16.2 million LOSS: $15.9 million LOSS PER SHARE: $1.25 DIVIDEND: None ASSETS: $28.4 million STOCKHOLDERS' EQUITY: $14.8 million RETURN ON EQUITY: NA EXCHANGE: OTC EMPLOYES: 90 TOP EXECUTIVES: Robert F. Johnston, chairman; J. Leslie Glick, president and chief executive officer. FOUNDED: 1977

DESCRIPTION: Genex provides contract biotechnology research services to government and corporate clients. Services include genetic, biochemical and protein engineering, and biomaterials science. A products division concentrates on marketing the company's enzyme-based drain opener.

DEVELOPMENTS: Genex began 1986 as a very different company than the year before, having survived a year of heady success followed by crashing disappointment. A year ago, Genex looked like it had achieved its goal of growing from a contract research firm into a manufacturer of its own products. Today, it is back to square one, rebuilding its contract research business after abandoning its production efforts, trimming its staff, and restructuring management.

Revenue declined 39 percent from $26.4 million the year before, and losses more than doubled from $7.4 million in 1984. The company was forced to cut two-thirds of its employes, from 264 a year ago to 90 now.

The turning point in the year was the announcement by G. D. Searle & Co. that it no longer would buy Genex's L-phenylalanine, an amino-acid ingredient of Searle's popular sweetener aspartame. In one blow, Genex lost its major customer for its primary product. The Searle supply contract expired Oct. 31, yet accounted for about 84 percent of total 1985 revenue and virtually all the company's product sales.

Searle's announcement came after Genex had invested heavily in buying and refitting a Paducah, Ky., production plant, primarily to manufacture L-phenylalanine for Searle. In October, Genex filed a lawsuit against Searle for more than $40 million, alleging that Searle misled Genex into buying the facility by misrepresenting its intentions to continue the supply arrangement.

Genex closed down the plant and now hopes to sell it. Most of the increase in net loss was attributed to the write-down of the plant and the estimated costs of its disposal.

The company also slashed its staff and saw the departure in December of its president and chief operating officer, V. M. Esposito. Glick took the reigns as president and gave up his title as chairman to Johnston, a venture capitalist and a founder of the company.

The company has abandoned its goal of manufacturing its own products and has won a number of new contracts. The contracting division also hopes to license existing Genex technology to companies with the resources to bring related products to market.