Printer Friendly

COMPUTERVISION ACHIEVES PROFITABLE 1992 FOURTH QUARTER FIRST FULL QUARTER RESULTS SINCE IPO; DECLARES CASH DIVIDEND

 BEDFORD, Mass., Jan. 29 /PRNewswire/ -- Computervision Corporation (NYSE: CVN) today announced that it achieved profitability for its first full quarter, ended Dec. 31, 1992, as a publicly-held Company, and has declared a cash dividend of $.01 per share to shareholders of record as of Feb. 9, 1993.
 For the fourth quarter ended Dec. 31, 1992, Computervision had net income of $4.8 million, or $0.10 per share, on revenues of $266.1 million. For the fourth quarter of 1991, Computervision incurred a net loss of $34.1 million on revenues of $332.6 million. Approximately 15 percent of the decline in 1992 fourth quarter revenues from a year ago reflects the impact of the stronger dollar.
 The Company continued to strengthen its balance sheet as it strategically positions itself as a leading software and services provider and announced that its cash balance of $95.8 million at the end of this past year's fourth quarter marked a 44 percent increase over the prior year-end and is the highest cash balance for the Company in 16 quarters.
 Total revenues for the year of $1,065.6 million decreased 12.1 percent from 1991, reflecting the Company's transition to a software and services provider, the worldwide recessionary environment, and the severe turmoil in the European currency markets at the end of the third quarter. The net loss for the year ended Dec. 31, 1992 was $225.9 million, which was a significant reduction when compared to the previous year's loss of $461.3 million. The Company believes, however, that due to the recapitalization of its debt in August 1992, the associated one- time charges and the discontinuation of its Computer Systems business, that year-to-year comparisons are not meaningful.
 John J. Shields, president and chief executive officer stated, "While our financial performance continues to reflect the challenges facing our major customers in the automotive and aerospace industries and a difficult worldwide economic climate, we are pleased with our operational achievements and the progress we have made in strengthening our products and relationships with our customers."
 "Our most powerful CAD/CAM software, CADDS 5, is being favorably received in the marketplace. CADDS 5 is designed to make our customers more competitive by lowering their costs and reducing the time needed to bring products to market. CADDS 5 revenue grew 71 percent in the fourth quarter over the third quarter, and we shipped 1,812 CADDS 5 seats to customers.
 "The Company introduced 18 new CAE/CAD/CAM products in the fourth quarter, as well as support for additional hardware and operating systems from Sun Microsystems, Digital Equipment Corporation, Hewlett- Packard Company, and Microsoft Corporation. During 1992, we had three major CADDS 5 releases, one each in June, November and December. We expect to average less than six months between major releases in the future due to our improved R&D processes and new software architecture," he said.
 The new software products introduced include:
 -- Concurrent Assembly Mock-up capabilities for Computervision's CADDS 5, which enables design teams to view the work of all engineers and designers who are working simultaneously on large and complex assemblies, such as an aircraft engine or an automobile chassis. This application has won critical acclaim, including the "Best Products of 1992" award by Design News for the Computer Productivity Tools category.
 -- Engineering Data Management 5.0, a sophisticated software solution used to control, manage, and distribute electronic files generated for product information. This product provides enhanced ease of use for the complex problem of product data management.
 -- The availability of CADDS 5 on Digital Equipment Corporation DECstation 5000 Series workstations.
 -- The availability of Computervision's MEDUSA software product on a Hewlett-Packard platform. The MEDUSA family of software was demonstrated during the quarter on an HP Apollo 9000 Series 700 workstation, as well as Sun's Solaris 2.0 operating system.
 -- A Windows NT version of Computervision's DesignView parametric modeling solution, pending release of Windows NT by Microsoft.
 Mr. Shields further stated, "The most gratifying orders have been with those customers who had recently purchased or evaluated a competitor's product and now are returning to the Computervision fold."
 Recent orders in excess of $1 million include:
 -- A CADDS 5 order of 147 seats from Audi AG for automotive body design and mechanical applications.
 -- A series of orders from the Fiat Group involving a broad base of car body and engine design applications used for new model launches.
 -- A series of orders from Ford Motor Company for powertrain and other applications.
 -- A 124-seat order for Computervision's highly advanced NURBS surfacing software from Rover Group for body design.
 -- An order from Rolls-Royce Aeroengine, where Computervision worked in close collaboration with Rolls-Royce in early development of its award-winning Concurrent Assembly Mock-Up application.
 -- An order from Applied Materials Incorporated for worldwide concurrent engineering systems and integration services.
 -- An order from Kvaerner Masa-Yards for the design of cruise ships.
 Mr. Shields also stated that during the quarter the Company's Service business completed two key transactions. In late October, Computervision acquired Intel Corporation's European Field Service and Customer Training Organization, five months after it acquired Intel's North American Field Service and Customer Training Unit. In addition, the Company strengthened our relationship with Sun Microsystems by becoming the first Sun Qualified Service Provider in the U.S. This agreement is important because it allows us to provide complete systems support, including Open Systems Software updates for Sun products which we do not sell.
 "Our Service business is an important component of Computervision's overall strategy and profitability. These transactions have added significantly to the breadth of our customer base and greatly enhanced our ability to provide excellent service to that customer base," Mr. Shields said.
 Computervision Corporation headquartered in Bedford, Mass., is a leading international provider of CAE/CAD/CAM software solutions and one of the world's top service providers in the CAE/CAD/CAM and general systems markets. The company develops, markets and supports mechanical, electronic, architectural engineering and construction applications, engineering data management software and geographic information systems (GIS) and has an installed base of more than 150,000 seats worldwide. Computervision's service business unit provides consulting, integration, education and support services for applications, systems and networking in heterogeneous computing environments the world over. The service organization also offers a full portfolio of conversion/migration and multivendor open systems support services to customers of the company and its strategic partners worldwide.
 COMPUTERVISION CORPORATION
 Three Months Ended: 12-31-92 12-31-91
 Revenue $ 266,064,000 $ 332,577,000
 Operating Income $ 17,449,000 $ 20,830,000
 Income (Loss) From Continuing $ 4,803,000 $ (16,519,000)
 Operations
 Loss From Discontinued
 Operations (A) $ - $ (17,556,000)
 Net Income (Loss) $ 4,803,000 $ (34,075,000)
 Income (Loss) Per Share:
 Income From Continuing
 Operations Per Share $ 0.10 $ ---
 Pro Forma Loss From Continuing
 Operations Per Share (B) $ --- $ (0.41)
 Net Income Per Share $ 0.10 $ ---
 Pro Forma Net Loss
 Per Share (B) $ --- $ (1.17)
 Weighted Average Shares
 Outstanding 48,000,000 23,000,000 (B)
 Year Ended:
 Revenue $ 1,065,579,000 $1,212,744,000
 Operating Income (C) $ 48,731,000 $ 28,047,000
 Loss From Continuing
 Operations (C)(D) $ (142,189,000) $ (119,752,000)
 Loss From Discontinued
 Operations (A) $ (83,683,000) $ (341,585,000)
 Net Loss (B) (C) (D) $ (225,872,000) $ (461,337,000)
 Loss Per Share:
 Pro Forma Loss From Continuing
 Operations Per Share (B) $ (3.46) $ (3.86)
 Pro Forma Net Loss
 Per Share (B) $ (6.09) $ (18.71)
 Weighted Average Shares
 Outstanding (B) 31,854,000 23,000,000
 (A) Loss from Discontinued Operations for the years ended Dec. 31, 1992 and 1991 and for the quarter ended Dec. 31, 1991 represents the results of operations of the Company's Computer Systems Business Unit which was discontinued in the second quarter of 1992.
 (B) Pro Forma Loss from Continuing Operations Per Share and Pro Forma Net Loss Per Share for the periods presented have been adjusted to reflect the Company's issuance of 23,000,000 shares of common stock on Aug. 21, 1992 to retire certain 1989 Senior Subordinated Note of the Company. The Pro Forma Net Loss Per Share calculations therefore reflect, on a pro forma basis, the elimination of interest expense related to the retired portion of the debt and the issuance of the 23,000,000 shares.
 (C) Operating Income for the year ended Dec. 31, 1992 includes a pre-tax non-recurring charge of $25,000,000 associated with anticipated workforce reductions and restructuring. Operating Income for the year ended Dec. 31, 1991 includes a pre-tax non-recurring charge of $22,500,000 related to fees associated with the renegotiation of the Company's financial covenants, workforce reductions and facility closings primarily related to the Company's service business unit.
 (D) Loss from Continuing Operations and Net Loss for the year ended Dec. 31, 1992 also include pre-tax charges of $64,050,000 associated with the Company's Aug. 21, 1992 recapitalization. Included in the charges are net write-offs of deferred finance charge and other fees related to the Company's previous debt ($44,150,000) and a charge ($19,900,000) related to the tax deconsolidation of the Company with its former parent company, DR Holdings Inc. of Delaware.
 -0- 1/29/93
 /CONTACT: Harvey Wagner, of Computervision, 617-275-1800 Ext. 4200; or Thomas Davies, or Josh Pekarsky, both of Kekst and Company, 212-593-2655, for Computervision/
 (CVN)


CO: Computervision Corporation ST: Massachusetts IN: CPR SU: ERN

LR -- NY006 -- 0609 01/29/93 08:46 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 29, 1993
Words:1575
Previous Article:REVELL-MONOGRAM, INC. REPORTS FOURTH QUARTER AND YEAR-END RESULTS
Next Article:VACU-DRY ANNOUNCES SECOND QUARTER RESULTS
Topics:


Related Articles
BISYS REPORTS FOURTH QUARTER AND FISCAL YEAR RESULTS; REVENUES INCREASE 18.4 PERCENT; OPERATING PERFORMANCE AHEAD OF LAST YEAR
NORDSON DIRECTORS DECLARE FOURTH QUARTER 1992 DIVIDEND
INTERWEST SAVINGS BANK DECLARES FOURTH-QUARTER DIVIDEND
INTERWEST SAVINGS BANK DECLARES FOURTH-QUARTER DIVIDEND
FIRST NATIONAL BANCORP DECLARES STOCK SPLIT AND FOURTH QUARTER DIVIDEND Stock Split Declaration
COMPUTERVISION ANTICIPATES FINANCIAL PERFORMANCE TO BE BELOW THE COMPANY'S PLAN FOR THE THIRD QUARTER
COMPUTERVISION CORP. REPORTS THIRD QUARTER EARNINGS
GALOOB REPORTS FIRST PROFITABLE FOURTH QUARTER SINCE 1989
GALOOB REPORTS FIRST PROFITABLE FOURTH QUARTER SINCE 1989
COMPUTERVISION ACHIEVES PROFITABLE FIRST QUARTER; COMPANY FOCUSED ON ITS SOFTWARE AND SERVICES BUSINESS

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters