#46. WASHINGTON HOMES INC.

956 Chandler Court Waldorf, Md. 20601 REVENUE: $61.5 million PROFITS: $2.4 million EARNINGS PER SHARE: $1.29 DIVIDEND: 50 percent stock dividend ASSETS: $45.4 million STOCKHOLDERS' EQUITY: $13 million RETURN ON EQUITY: 22.2 percent EXCHANGE: Amex EMPLOYES: 169 TOP EXECUTIVES: William J. Harnett, chairman and chief executive officer; Lawrence M. Breneman, president and chief operating officer. FOUNDED: 1965

DESCRIPTION: Washington Homes builds and sells single-family homes ranging in price from $50,000 to $160,000, depending on the cost and location of the land. Homes are built from plans designed and adapted by company employes. The company's operations are concentrated in Maryland and Northern Virginia. In addition to its home-building operations, Washington Homes is also a diversified savings and loan holding company, owning 84 percent of the stock in Bay State Savings and Loan Association.

DEVELOPMENTS: Home-building sales by units increased in each of the past three years. Sales in the last fiscal year increased 13 percent, and earnings were up 23 percent before accounting for an extraordinary charge at Washington Homes' savings and loan subsidiary. Bay State Savings and Loan Association, formerly insured by the defunct Maryland Savings Share Insurance Corp., anticipating that certain funds might not be recovered from the private insurance program, took a one-time, pretax extraordinary charge to earnings during last year's fourth quarter.

In other developments, Washington Homes formed a third finance subsidiary in fiscal 1985 after establishing two in the previous fiscal year to finance mortgages for its customers. #47. ENTRE' COMPUTER CENTERS INC.

1951 Kidwell Dr. Vienna, Va. 22180 REVENUE: $57.5 million PROFITS: $8.1 million EARNINGS PER SHARE: 85 cents DIVIDEND: None ASSETS: $74.2 million STOCKHOLDERS' EQUITY: $28.8 million RETURN ON EQUITY: 33 percent EXCHANGE: OTC EMPLOYES: 409 TOP EXECUTIVE: Steven B. Heller, president and chief executive officer. FOUNDED: 1981

DESCRIPTION: Entre' operates an international personal-computer retail franchise business.

DEVELOPMENTS: Despite a continuing shakeout in the personal-computer industry throughout Entre''s 1985 fiscal year, the company sustained a healthy rate of growth, with revenue jumping 50 percent for the year ended last Aug. 31. Net income also increased significantly and was 17 percent higher than in the prior year.

The rate of growth continued strong in the first half of the current fiscal year. The company reported revenue of $37.7 million for the six months ended Feb. 28, up 60 percent from the same period in the prior year. Net income was cut in half, however, with Entre' reporting profits of $2.4 million (26 cents a share) for the first six months of fiscal 1986, compared with profits of $5.3 million (55 cents) for the same period last year.

The sharp drop in earnings, despite the increased corporate revenue, is attributed to costs related to expansion of the Entre' network in Europe and Australia.

The company currently operates 258 retail computer centers in 43 states, the District of Columbia, Canada and Western Europe. About 62 new centers were established in fiscal 1985, considerably fewer than the 144 franchises awarded in the previous year. #48. HAZLETON LABORATORIES CORP.

Dulles Renaissance Center Hallmark Building 13873 Park Center Rd. Herndon, Va. 22071 REVENUE: $55.9 million PROFITS: $2.2 million EARNINGS PER SHARE: 53 cents DIVIDEND: 32 cents ASSETS: $78.9 million STOCKHOLDERS' EQUITY: $45.3 million RETURN ON EQUITY: 4.2 percent EXCHANGE: NYSE EMPLOYES: 1,377 TOP EXECUTIVE: Kirby L. Cramer, chairman and chief executive officer. FOUNDED: 1968

DESCRIPTION: Hazleton provides biological and chemical research services, makes biological products and supplies research animals.

DEVELOPMENTS: Hazleton has emerged from a corporate restructuring with a tighter business focus, restored profitability and growing sales. The company decided last year to concentrate on biological services and products, while shedding its laboratory equipment and orthapedic operations. Hazleton now claims to be the second-largest independent producer of biological products in the country, and the largest provider of biological testing services in the world.

The company ended its fiscal year on June 30 profitably, in contrast to a loss of $333,000 the year before, which reflected plans to dispose of its Kirschner Medical Corp. orthopedic subsidiary and discontinue other operations. Profits from continuing operations were $2.2 million in fiscal 1985, up 217 percent from $631,000 the year before, and revenue grew 6 percent.

Before the end of its 1985 fiscal year, the company had sold its Hazleton Systems laboratory equipment operation and agreed to acquire the animal and molecular toxicology operations of Litton Bionetics, a former subsidiary of Litton Industries.

Since then, the company has spun off Kirschner and acquired KC Biological Inc. from Corning Glass Works. In January, Hazleton distributed all of its shares of Kirschner to Hazleton shareholders as a nontaxable dividend. The shareholders received one share of Kirschner for every three shares of Hazleton owned. KC Biological was acquired Jan. 27 through issuing Hazleton stock to Corning, making Corning the largest shareholder with close to a 10 percent stake. The new partnership will create opportunities for scientific and commercial collaboration, while the acquisition expands Hazleton's domestic geographical reach to include the East and Midwest. Cramer said the merger may be the most important development of the last 18 months, and that Hazleton expects to make another acquisition to extend its territory to the West.

Hazleton has expanded internationally as well, adding and acquiring facilities in Japan, the Netherlands and England.

The company plans to continue buying back its stock, intending to purchase an additional 500,000 shares. #49. COMPUTER DATA SYSTEMS INC.

1 Curie Court Rockville, Md. 20850 REVENUE: $55.1 million PROFITS: $2.9 million EARNINGS PER SHARE: 96 cents DIVIDEND: 8 cents ASSETS: $27 million STOCKHOLDERS' EQUITY: $13.4 million RETURN ON EQUITY: 25 percent EXCHANGE: OTC EMPLOYES: 1,338 TOP EXECUTIVES: Clifford M. Kendall, president; Wyatt D. Tinsley, executive vice president. FOUNDED: 1968

DESCRIPTION: Computer Data Systems is a diversified high-technology firm that sells consulting services to government and commercial clients. It also produces, markets and maintains computer hardware and software. Its clients include government agencies, the military, trade unions and commercial and nonprofit organizations.

DEVELOPMENTS: Computer Data increased its revenue and profits slightly last year. Revenue climbed to $55.1 million from $54.8 million, while profits went up to $2.95 million from $2.88 million as the company concentrated on positioning itself for future growth. It signed two contracts with the General Services Administration for government services.

One, with a potential value of $30 million, covers one year with the possibility of three extensions and is for electronic data-processing services to civilian agencies and Defense Department offices in New York and mid-Atlantic states.

The second contract, dealing with risk analysis and security audits, has a lower potential value than the original estimate of $24 million. The company also won a $19 million Navy contract and an $8 million contract from the Labor Department. #50. SOFTWARE AG SYSTEMS INC.

11800 Sunrise Valley Dr. Reston, Va. 22091 REVENUE: $52.3 million PROFITS: $6.7 million EARNINGS PER SHARE: $1.12 DIVIDEND: None ASSETS: $48.8 million STOCKHOLDERS' EQUITY: $33.1 million RETURN ON EQUITY: 20 percent EXCHANGE: OTC EMPLOYES: 311 TOP EXECUTIVES: John N. Maguire, chairman of the board; Stuart J. Miller, president and chief executive officer. FOUNDED: 1973

DESCRIPTION: Software AG Systems Inc., through its operating unit Software AG of North America Inc., develops, markets and supports an integrated line of computer-systems software for mainframe computers and computer networks. The company -- along with the related but independent Software AG of Darmstadt, West Germany -- is part of a worldwide association of companies serving customers with common software products.

DEVELOPMENTS: Software AG continued to bring a variety of new software products to market during the last year. In March 1985, the company introduced a system for data-base performance monitoring and reporting, and a sophisticated electronic message management system, the firm's first office information product.

Last May, the company signed a letter of intent to conduct joint development and marketing activities with Ashton-Tate, developers of two popular microcomputer programs, dBase III and Framework.

Revenue for the year ending last May 31 increased 27 percent, largely on the basis of greater volume from software licensing agreements. Net income for the year increased 15 percent. The company reported a 39 percent increase in revenue from international sales in fiscal 1985.

Effective with the last fiscal year, Software AG changed its accounting methods for contract revenue. The new policy is to recognize revenue at the time the product is installed as opposed to the past practice of recognizing 90 percent of the revenue when contracts are executed and the remaining 10 percent when software is installed.

For the first nine months of the current fiscal year, the company reported revenue of $47 million, compared with $38.1 million for the same period a year ago. Net income for the nine months ending Feb. 28 was $6.6 million ($1.12 a share) compared with $5.7 million (95 cents) prior to adjustment for changes in accounting methods. Net income for the same nine months in the prior year after adjustment for new accounting procedures was $4.1 million (69 cents). sales. The company decided last year to concentrate on biological services and products, while shedding its laboratory equipment and orthapedic operations. Hazleton now claims to be the second-largest independent producer of biological products in the country, and the largest provider of biological testing services in the world.

The company ended its fiscal year on June 30 profitably, in contrast to a loss of $333,000 the year before, which reflected plans to dispose of its Kirschner Medical Corp. orthopedic subsidiary and discontinue other operations. Profits from continuing operations were $2.2 million in fiscal 1985, up 217 percent from $631,000 the year before, and revenue grew 6 percent.

Before the end of its 1985 fiscal year, the company had sold its Hazleton Systems laboratory equipment operation and agreed to acquire the animal and molecular toxicology operations of Litton Bionetics, a former subsidiary of Litton Industries.

Since then, the company has spun off Kirschner and acquired KC Biological Inc. from Corning Glass Works. In January, Hazleton distributed all of its shares of Kirschner to Hazleton shareholders as a nontaxable dividend. The shareholders received one share of Kirschner for every three shares of Hazleton owned. KC Biological was acquired Jan. 27 through issuing Hazleton stock to Corning, making Corning the largest shareholder with close to a 10 percent stake. The new partnership will create opportunities for scientific and commercial collaboration, while the acquisition expands Hazleton's domestic geographical reach to include the East and Midwest. Cramer said the merger may be the most important development of the last 18 months, and that Hazleton expects to make another acquisition to extend its territory to the West.

Hazleton has expanded internationally as well, adding and acquiring facilities in Japan, the Netherlands and England.

The company plans to continue buying back its stock, intending to purchase an additional 500,000 shares.