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COMMODORE INTERNATIONAL LIMITED ANNOUNCES FOURTH QUARTER 1993 AND FIRST QUARTER 1994 RESULTS

 NEW YORK, Nov. 12 /PRNewswire/ -- Commodore International Limited (NYSE: CBU) today reported results for the fourth quarter ended June 30, 1993, and the first quarter ended Sept. 30, 1993.
 The results are as follows:
 Quarter Quarter
 June 30, 1993 September 30, 1993
 (millions)
 Net Sales $ 73.6 $ 82.6
 Net Income (Loss) (82.9) ( 9.7)
 FISCAL 1993 AND FOURTH QUARTER RESULTS
 Commodore International Limited today reported a net loss of $82.9 million, or $2.51 per share on sales of $73.6 million for the fourth quarter ended June 30, 1993. This compares with a net loss of $21.9 million, or $0.66 per share on sales of $140.7 million in the year ago quarter.
 For the fiscal year ended June 30, 1993, the net loss was $356.5 million, or $10.78 per share compared with net income of $27.6 million, or $0.82 per share in fiscal 1992. Sales for the year were $590.8 million compared with $911.0 million in the prior year.
 The intense competitive pricing pressure and economic softness in all major markets which the Company experienced in previous quarters continued in the fourth quarter. These factors combined with a discontinuation of the PC product line resulted in a sales decline of almost 50% from the prior year quarter. In light of the deteriorating market conditions, a provision of $50 million was made for inventory writedowns and restructuring costs. This provision is included in the net loss for the fourth quarter of $83 million.
 The net loss for the year of $356 million included $237 million for asset writedowns, restructuring costs and special pricing and promotional allowances. This loss has resulted in negative net worth and has had a severe adverse effect on the Company.
 Irving Gould, Chairman and Chief Executive Officer, stated: "Clearly the financial performance for the fiscal year was extremely unsatisfactory. The Company has addressed its current financial difficulties by restructuring its business in a number of ways including eliminating unprofitable product lines to focus exclusively on its Amiga products and sharply reducing total expenses. These actions, together with the introduction of the new Amiga CD32, have resulted in improved operating performance enabling substantial narrowing of the operating loss for the quarter ended September 30, 1993."
 Commodore International Limited and Subsidiaries
 Condensed Consolidated Statements of Operations
 ($000's)
 Three Months Ended Twelve Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Net Sales $ 73,600 $140,700 $590,800 $911,000
 Cost of Sales 102,900 126,400 722,900 664,700
 Gross Profit (Loss) (29,300) 14,300 (132,100) 246,300
 Operating Expenses 48,300 46,400 202,500 215,000
 Operating Income (Loss) (77,600) (32,100) (334,600) 31,300
 Interest Expense, Net 3,900 3,500 17,800 14,700
 Other Expense (Income) 1,600 (8,700) 3,600 (8,800)
 Income (Loss) Before
 Income Taxes (83,100) (26,900) (356,000) 25,400
 Provision (Benefit) for
 Income Taxes (200) (5,000) 500 (2,200)
 Net Income (Loss) $(82,900) $(21,900) $(356,500) $ 27,600
 Net Income (Loss)
 Per Share ($2.51) ($0.66) ($10.78) $0.82
 Average Shares
 Outstanding 33,086,000 33,027,000 33,073,000 33,593,000
 See Attached Footnotes
 Commodore International Limited and Subsidiaries
 Condensed Consolidated Balance Sheets
 ($000's)
 June 30, June 30,
 1993 1992
 Cash and Investments $ 9,900 $ 65,500
 Accounts Receivable, Net 92,600 258,400
 Inventories 79,700 204,400
 Other Current Assets 11,400 10,700
 Total Current Assets 193,600 539,000
 Fixed and Other Assets 72,200 108,100
 $265,800 $647,100
 Current Debt $114,000 $ 97,300
 Other Current Liabilities 186,800 163,100
 Total Current Liabilities 300,800 260,400
 Long-Term Debt and Other 18,200 61,700
 Shareholders' Equity (53,200) 325,000
 (Deficit)
 $265,800 $647,100
 See Attached Footnotes
 COMMODORE INTERNATIONAL LIMITED
 FOOTNOTES TO CONDENSED FINANCIAL STATEMENTS
 June 30, 1993
 1) The financial statements have been prepared assuming that the
 Company will continue as a going concern. The Company's
 financial position and operating results raise substantial
 doubts about the Company's ability to continue as a going
 concern.
 2) The Company is attempting to negotiate appropriate credit terms
 with suppliers who have restricted the Company's credit and
 intends to work out a restructuring plan with its creditors,
 including those which have instituted legal action against the
 Company, to allow the Company to continue normal operations.
 However, there can be no assurance that a successful debt
 restructuring will be achieved.
 3) Current debt includes $33 million of senior notes held by
 two institutional lenders. The Company is in non-compliance
 with the note agreements and is negotiating a waiver from the
 lenders in order to allow the Company to pursue a debt
 restructuring.
 4) In order to obtain needed working capital, a company controlled
 by the chairman loaned $17.0 million in February and April 1993
 to the Company. An agreement was made to sell $9.5 million of
 inventory in satisfaction of a portion of the debt. The
 proceeds of these sales were temporarily retained by the Company
 but subsequently repaid to the lending company. The remaining
 amount of $7.5 million is represented by a collateralized demand
 loan and has been classified as short-term debt as of June 30,
 1993.
 FIRST QUARTER FISCAL 1994 RESULTS
 Commodore International Limited today reported a net loss of $9.7
 million, or $.29 per share on sales of $82.6 million for the first
 quarter ended September 30, 1993. This compares with a net loss
 of $18.8 million, or $.57 per share on sales of $158.6 million in
 the year ago quarter.
 Sales for the quarter include the new Amiga CD32 game machine
 which was launched in Europe and Australia. Sales of the Amiga
 1200 rebounded strongly from the very disappointing level in the
 June quarter.
 As a result of the drastic restructuring actions taken in fiscal
 1993, operating expenses were reduced by 65% from the prior year
 quarter and also significantly reduced from the June quarter.
 Mr. Irving Gould, Chairman and Chief Executive Officer, stated "We
 have made progress in reducing the net loss from $82.9 million in
 the June quarter to $9.7 million in the September quarter. Having
 largely completed our operational restructuring, we are now
 planning to undertake a restructuring of our debts to allow the
 Company to continue normal operations."
 COMMODORE INTERNATIONAL LIMITED AND SUBSIDIARIES
 Condensed Consolidated Statements of Operations
 (Unaudited)
 ($000's)
 Three Months Ended
 September 30,
 1993 1992
 Net Sales $82,600 $158,600
 Cost of Sales 76,100 133,400
 Gross Profit 6,500 25,200
 Operating Expenses 13,700 39,500
 Operating Income (Loss) (7,200) (14,300)
 Interest Expense, Net 4,100 4,100
 Other Expense (Income) (200) 200
 Income (Loss) Before
 Income Taxes (11,100) (18,600)
 Provision (Benefit) for
 Income Taxes (A) (1,400) 200
 Net Income (Loss) $(9,700) ($18,800)
 Earnings (Loss) Per Share $(.29) $(.57)
 Average Shares
 Outstanding 33,115,000 33,047,000
 (A) Tax benefit represents management's revised estimate of required
 tax reserves.
 COMMODORE INTERNATIONAL LIMITED AND SUBSIDIARIES
 Condensed Consolidated Balance Sheets
 (Unaudited)
 ($000's)
 September 30, September 30,
 1993 1992
 Cash and Equivalents $ 8,400 $ 40,700
 Accounts Receivable, Net 87,800 258,100
 Inventories 59,700 215,700
 Other Current Assets 14,000 15,800
 Total Current Assets 169,900 530,300
 Fixed and Other Assets 70,200 112,300
 $240,100 $642,600
 Current Debt $111,600 $ 95,900
 Other Current Liabilities 172,200 175,600
 Total Current Liabilities 283,800 271,500
 Long-Term Debt and Other 17,500 65,500
 Shareholders' Equity (61,200) 305,600
 (Deficit)
 $240,100 $642,600
 /delval/
 -0- 11/12/93
 /CONTACT: Hock Tan, Chief Financial Officer of Commodore International Limited, 215-431-9100/
 (CBU)


CO: Commodore International ST: Pennsylvania IN: CPR SU: ERN

JM-LJ -- PH021 -- 3935 11/12/93 17:48 EST
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Date:Nov 12, 1993
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