KLH collects on Raytheon settlement
KANSAS CITY, Kan.--July 26, 1995--KLH Engineering Group Inc. announced
that its subsidiary, Tomahawk Construction Company,
Inc. has collected on a settlement from Raytheon Engineers & Constructors for
Of this settlement, approximately $980,000 is being used to
retire current payables.
The disbursement of the settlement was approved through the
Chapter 11 bankrupty court and followed the reorganization plan
previously submitted by Tomahawk. The Raytheon collection, in
conjunction with the pending financial restructuring, will allow
Tomahawk to emerge from the Chapter 11 bankruptcy on scheduled by
Aug. 14, 1995.
KLH Engineering Group, Inc. is a full-service consulting,
engineering and construction firm based in Englewood, Colo. The
company's common stock trades on the NASDAQ Bulletin Board under the
CONTACT: KLH Engineering Group Inc., Kansas City
Michael A. Cederstrom, 913/621-4233
WANG REPORTS FOURTH-QUARTER AND FISCAL YEAR RESULTS
BILLERICA, Mass.--July 26, 1995--For the
quarter ended June 30, 1995, Wang (NASDAQ: WANG)
reported revenues of $284.9 million, which compares to revenue of $207.6 million in
the year-ago quarter, an increase of 37 percent. Fourth-quarter
revenues from the company's OPEN/software products and services were
$8.4 million, which compares to $4.8 million in the year-ago
EBITDA (earnings before net interest, taxes, depreciation, and
amortization) were $34.2 million for the quarter, which compares to
$20.7 million in the year-ago quarter.
Net income for the quarter was $6.7 million, or $0.12 per share,
which compares to net income of $2.6 million in the year-ago
Wang reported cash balances of $181.3 million as of June 30,
1995, with no borrowings under its revolving credit facility. The
June 30 cash balances includes proceeds from Microsoft's purchase of
Wang convertible preferred stock.
For the fiscal year ended June 30, 1995, the company reported
revenues of $946.3 million, which compares to revenues of $855.3
million in the previous fiscal year. Fiscal-year revenues from the
company's OPEN/software products and services were $21.2 million,
which compares to $9.4 million, an increase of 126 percent.
EBITDA for the year were $87.0 million, which compares to $95.5
million for the previous year.
The net loss for the year was $57.6 million, or $2.02 per share,
which includes a $64.2 million charge for integration,
consolidation, and other initiatives principally related to Wang's
acquisition of certain of the businesses of Groupe Bull. In future
quarters, as the amounts are incurred, the company expects to report
approximately $5 million of additional costs for acquisition-related
relocation, personnel, systems integration, and other related
charges. Fourth-quarter operating expense includes approximately
$2.4 million of similar charges.
Joseph M. Tucci, chairman of the board and chief executive
officer, said, "In fiscal 1995, we successfully completed several
strategic initiatives designed to take full advantage of the
opportunities for growth in each of Wang's three core businesses.
o In the fourth quarter, we completed the merger and
integration of Bull's customer services operations, creating one of
the industry's largest independent services organizations. Since
the acquisition, Wang has reduced worldwide headcount significantly,
and we ended the fiscal year at approximately 6,900 employees.
o We established an alliance with Microsoft, and our imaging
software will be incorporated in all future releases of Windows 95
and Windows NT, making Wang the industry standard.
o We acquired Sigma Imaging Systems and will benefit immediately
from the revenue growth opportunities made possible by our alliance
with Microsoft. We can now provide scalable, enterprise-wide, high
volume imaging software for the Windows 95 and Windows NT
environments. The Sigma products are available this quarter. In
connection with the acquisition, we anticipate a provision of
approximately $20 million, that will be recorded in the first
quarter of fiscal year 1996, related to purchased R&D and Wang's
overlapping development efforts.
o Wang's Services Business achieved worldwide ISO 9000
certification, confirming our commitment to quality on a global
o We established an agreement with Microsoft to jointly develop,
market, and support a Wang VS OFFICE to Microsoft Exchange Gateway,
which will allow the 1.5 million Wang OFFICE users to co-exist with
or transition to popular Microsoft office products.
o Wang's U.S. federal government systems business was awarded a
$25 million, five-year software and system support contract by NASA,
continuing a long-standing relationship.
o Intense focus on Wang's global initiatives in software,
customer services, and network integration in the international
arena has produced an excellent volume of new bookings and new
customers across all businesses.
"These initiatives make it possible for us to build successfully
upon the solid foundation we established this past fiscal year."
WANG LABORATORIES, INC.
(Dollars in millions except per share data)
Quarter Ended Twelve Months Ended
June 30, June 30,
1995 1994 1995 1994
Reorganized Reorganized Reorganized Predecessor &
Company Company Company Reorganized
Product $ 95.1 $ 77.1 $365.0 $303.2
other 189.8 130.5 581.3 552.1
284.9 207.6 946.3 855.3
expenses 271.0 198.4 913.1 810.6
Operating income before
amortization of intangible
restructuring 13.9 9.2 33.2 44.7
Amortization of intangible
assets (a) 9.9 6.9 32.0 20.7
Restructuring (b) -- -- 64.2 --
(loss) 4.0 2.3 (63.0) 24.0
Interest and other
income - net (2.7) (2.3) (9.0) (8.7)
Income (loss) before
items 6.7 4.6 (54.0) 32.7
Provision for income
taxes -- 2.0 3.6 10.2
Income (loss) before reorganization
items 6.7 2.6 (57.6) 22.5
items -- -- -- 488.0(c)
Net income (loss) 6.7 2.6 (57.6) 510.5
stock (2.5) (2.0) (8.7) (4.2)
Net income (loss)
stockholders $ 4.2 $ 0.6 $ (66.3) $ 506.3
share $ 0.12 $ 0.02 $ (2.02) $ (d)
(a) Amount relates to amortization of intangible assets acquired
from Groupe Bull and assets identified in connection with the
adoption of "fresh-start" reporting.
(b) Charges principally associated with integration and
consolidation initiatives related to the acquisition of certain of
the businesses of Groupe Bull.
(c) Includes $329.3 million extraordinary gain on debt discharge
and $193.6 million to adjust the company's balance sheet to fair
market value recorded as a result of the confirmation of the
Reorganization Plan and the adoption of "fresh-start" reporting.
These gains are reduced by $34.9 million of professional fees,
restructuring initiatives, and other expenses related to the
company's reorganization under Chapter 11.
(d) Earnings per share information is not presented for the twelve
months ended June 30, 1994 due to the implementation of
"fresh-start" reporting in connection with the confirmation of the
Reorganization Plan, which resulted in a revised capital structure
of the company as of September 30, 1993.
CONTACT: Wang Laboratories, Billerica
Frank Ryan, 508/967-7038
Ed Pignone, 508/967-4912
System Controls Inc. announces first steps in reorganization of North
American division, Hogan Sales Co. Inc.
ANAHEIM, Calif.--July 26, 1995--System Controls Inc. (OTC:SCTL), an
electronics manufacturer and distributor of energy-management systems, Wednesday
announced that its Hogan Sales Co. Inc. (Hogan) wholly
owned subsidiary has filed for protection under Chapter 11 of the US Bankruptcy code.
In addition, Glen Easterbrook, chief executive officer and
director of System Controls, and chief executive officer and
director of Hogan, has resigned his positions as a director of both
companies, and has been granted a leave of absence.
Phillip Westall, chairman and chief executive officer, stated,
"The filing of Chapter 11 for Hogan is the first step in the
reorganization of the company's operations in the United States, as
announced in our press release June 9, 1995.
"Hogan's supplier of electronic fluorescent ballasts had not
made any significant delivery to Hogan's customers during the past
18 months, resulting in up to $18 million in orders being either
canceled, or simply not placed, due to the delivery situation.
Hogan's exclusive contractual arrangement with its supplier
prevented Hogan from seeking alternative product supply sources.
"The company continues to consider what legal actions, if any,
should be brought in this matter."
CONTACT: Richard Corline, 805/686-2344
HAYES POSTS OPERATING PROFITS FOR THIRD CONSECUTIVE QUARTER
ATLANTA, Ga--July 26, 1995--Hayes
Microcomputer Products, Inc., revealed today that the company has posted operating
profits of approximately $0.1 million on sales of $58.4 million during the third
quarter of FY 1995. This is the third consecutive quarter that Hayes has posted
operating profits this fiscal year.
"Despite component supply problems early in the quarter and the
extraordinary costs associated with our Chapter 11 reorganization,
Hayes operations have remained profitable and the company continues
to experience record demand for both the Hayes and Practical
Peripherals brands," said Dennis C. Hayes, president and CEO.
Bookings for both the Hayes and Practical Peripherals brands
remain at record levels and reached in excess of $74 million during
the third quarter of the current fiscal year. These results reflect
a 30 percent increase in year-to-date total shipments of units and
in excess of 11 percent growth from Q3 Fiscal Year 1994 to Q3 Fiscal
Reorganization fees averaging approximately $600,000 per month
will be eliminated after the company emerges from Chapter 11
protection. Supply shortages of modem chips and chip sets also
reduced the company revenues approximately $10 million during the
third quarter. A recent out-of-court settlement with Rockwell
International ensures that chips will continue to be delivered to
the company, and Hayes products will continue to be available.
Hayes received approval of its Disclosure Statement from the
U.S. Federal Bankruptcy Court earlier this month, and the
exclusivity period for the company to proceed with its Plan of
Reorganization was extended to September 30. It is anticipated that
the company could emerge from Chapter 11 as early as September or
October 1995, less than a year from the date Hayes filed for
Best known as the leader in microcomputer modems, Hayes
develops, supplies and supports computer communications equipment
and software for personal computers and computer communications
networks. The company distributes its products through a global
network of authorized distributors, dealers, mass merchants, VARs,
system integrators and original equipment manufacturers.
Copies of the Company Disclosure Statement and Plan of
Reorganization will be available in approximately one week.
/CONTACT: Susan Merkel, Hayes Microcomputer Products, Inc.,
404-840-6824, fax 404-441-1238, Internet, smerkelhayes.com/