BURLINGTON, Mass.--Jan. 18, 1996--Concentra
Corporation (NASDAQ: CTRA), a leading supplier of sales and
engineering automation software solutions, today announced its
operating results for the third quarter and nine months ending
December 31, 1995.
Revenues for the third quarter of fiscal year 1996 were $4.3
million, compared with $5.3 million for the same period last year.
The net loss for the third quarter was $1.2 million, compared with
net income of $0.8 million. The net loss per share for the quarter
was $0.23 on 5.3 million shares outstanding compared with net income
per share of $0.19 on a pre-IPO share count of 4.2 million shares
outstanding for the same period last year. The net loss for the
third quarter of fiscal 1996 includes a one-time restructuring
charge of $0.04 per share for severance costs associated with a
reduction in the company's workforce.
Revenues for the nine months ending December 31, 1995 were $13.9
million, which was approximately even with the same period last
year. Including the one-time restructuring charge, the net loss for
the nine month period ending December 31, 1995 was $0.8 million, or
$0.15 per share, on 5.3 million shares outstanding, compared with
net income of $1.5 million, or $0.40 per share, on a pre-IPO share
count of 3.9 million shares for the same period last year.
"As previously stated, the third-quarter loss was due to lower
revenues and restructuring charges," said Lawrence W. Rosenfeld,
chairman and chief executive officer. "The lower revenues reflect
purchasing delays in a number of accounts. Despite these delays,
Concentra did receive several significant orders during the quarter
from United Technologies, Morton International, Ford Motor, Boeing,
Airbus and Valeo. Although the timing of large orders is not always
predictable, we are confident about our long-term business outlook.
To enhance our operations, we implemented programs focused on
controlling and reducing costs, sharpening our marketing focus and
increasing efficiencies throughout the organization."
Mr. Rosenfeld added, "While the task of introducing our new
product, Selling Point has been challenging, I am encouraged by our
progress during the past quarter. Our sales and technical support
organization is fully trained and proficient in the use of the
product. Moving forward, our sales efforts will be focused on
striking a better balance between large, long-term strategic
accounts and small- and medium-sized accounts where our design and
engineering expertise provide us with competitive advantages. Our
marketing and engineering organizations continue to enhance the
functionality of Selling Point, demonstrated by the integration of
Selling Point with i2's Rhythm 3.0 product to better serve
manufacturing users and the integration of Xcellnet's Remoteware
software to support communications with remote users while
minimizing data replication." Concentra Corporation is the leading
provider of object-oriented sales and engineering software
solutions. Using Concentra's software, market-leading companies
worldwide in the aerospace, automotive, industrial equipment and
construction industries are creating customer-driven product
designs, configurations and sales proposals in minutes, not months.
Headquartered in Massachusetts, the company maintains offices across
the U.S., Europe and Asia.
The consolidated condensed statement of operations and condensed
balance sheets are attached.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands, except per share data)
Three months ended Nine months Ended
December 31, December 31,
1995 1994 1995 1994
Software $3,077 $3,036 $8,201 $6,386
Services 1,114 2,130 5,334 5,527
Related party software
and services 83 139 358 2,049
Total revenues 4,274 5,305 13,893 13,962
Cost of software
licenses 318 319 888 1,026
Cost of services 686 574 1,705 1,397
Sales and marketing 3,077 2,319 8,388 6,233
Research and development 756 560 2,247 1,775
administrative 712 535 1,906 1,619
Restructuring charge 196 196
Total operating expenses 5,745 4,307 15,330 12,050
(Loss) Income from
operations (1,471) 998 (1,437) 1,912
Interest income (expense),
net 166 (69) 561 (212)
Other income (expense) (8) 21 61 129
(Loss) Income before
income taxes (1,313) 950 (815) 1,829
(Benefit) Provision for
income taxes (99) 141 285
Net (loss) income ($1,214) $809 ($815) $1,544
Net (loss) income per common and common
equivalent shares ($0.23) $0.19 ($0.15) $0.40
Weighted average number of
common and common equivalent
shares outstanding 5,315 4,152 5,283 3,896
CONSOLIDATED CONDENSED BALANCE SHEETS
December 31, March 31,
Cash and cash equivalents $9,571 $17,010
Accounts receivable 6,570 5,919
Property and equipment, net 3,067 891
Intangible assets and
capitalized software, net 2,655 1,920
Other assets 1,172 722
TOTAL ASSETS $23,035 $26,462
LIABILITIES AND STOCKHOLDERS' EQUITY:
Accounts payable and accrued
expenses $2,475 $4,226
Deferred revenue 1,762 3,696
Other liabilities 1,459 633
Total liabilities 5,696 8,555
Total stockholders' equity 17,339 17,907
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $23,035 $26,462
BLOOMINGTON, Ind.--Jan. 18, 1996--General
Acceptance Corp. announced today that GE Capital Corporation has
notified General Acceptance Corp. of the occurrence of an event of
default under the Loan and Security Agreement for covenant
violations relating to loan loss and delinquency ratios.
GE Capital has agreed to continue funding under the $100 million
revolving line, while the companies expeditiously develop a plan,
which is designed to restore and maintain these ratios at acceptable
General Acceptance Corp. continues to review its contracts
receivable and the adequacy of loan loss reserves. Due to
significantly higher loan losses in the 4th quarter of 1995, the
company anticipates that the results of this review will require an
additional loan loss provision, which would create a net loss for
the 4th quarter of 1995.
General Acceptance Corp. is a specialized consumer finance
company, principally engaged in purchasing and servicing installment
sale contracts, relating to the sale of used automobiles by dealers,
with whom the company has established a formal business
relationship, to consumers with limited access to traditional
financing sources. The company operates in 19 states, is
headquartered in Bloomington and has regional offices in Ohio,
Illinois, Florida, Missouri, New Jersey, Pennsylvania, Arizona and
GAC's stock is traded on the NASDAQ under the symbol "GACC."
CONTACT: General Acceptance Corp., Bloomington,
Russell Algood, 812/876-3555
WILMINGTON, Del., Jan. 18, 1995 -- href="chap11.columbia.html">The Columbia Gas System
Inc. (NYSE: CG) announced today that Catherine Good Abbott,
been named Chief Executive Officer of its two interstate pipeline
subsidiaries effective immediately.
Abbott, a Principal of Gem Energy Consulting, Inc., with more
than 18 years experience in the energy industry, replaces James P.
Holland, who has resigned as chairman and CEO of Columbia Gas
Transmission Corp. and Columbia Gulf Transmission Co. after more
than 20 years of service. The two companies operate the second
largest underground natural gas storage system in the country and a
23,000 mile interstate natural gas pipeline system that extends from
the Gulf of Mexico to New England and the Eastern Seaboard. They
deliver about five percent of the natural gas consumed in the United
Columbia System Chairman Oliver G. Richard III said he
considered both internal and external candidates in seeking a
successor for Holland. "We wanted someone with an extensive
background in the energy business, an innovative thinker and a
dynamic leader," Richard said. "Cathy Abbott was the perfect choice,
and I am excited to have her join the management team of the new
Columbia. Her extensive experience in the natural gas industry, in
both the public and private sectors, makes her well suited to lead
Richard praised Holland for maintaining the profitability and
operational stability of Columbia's transmission operations during
the four years that Columbia Transmission operated under Chapter 11.
"He and his staff not only successfully weathered the financial
problems, but also restructured both companies to make them strong
competitors in the new energy marketplace."
In announcing his resignation, Holland said that "with the
Chapter 11 proceedings successfully concluded, I believe that the
companies' as well as my own personal interests are best served by
my stepping aside to pave the way for new leadership at the
transmission companies. The past four years have been particularly
stressful, and I look forward to spending more time with my family
and exploring other business opportunities."
Abbott also complimented Holland and his management team,
stressing that Columbia's transmission companies are "well-
positioned to capitalize on growth opportunities in the months and
years ahead. I look forward to building on this strong foundation
to lead the company in four key directions: developing creative
regulatory policies, expanding and tailoring our services to meet
customer needs and external competition, promoting cost discipline,
and providing more opportunities for employees to develop their
skills and assume responsibility." Abbott pointed to the $400
million market expansion program that Columbia Transmission
announced recently as an example of the strength of the companies
and their growth potential.
Speaking on behalf of Columbia's Board of Directors, Lead
Director James R. Thomas II of Charleston, W.Va., said: "We're
enthusiastic at the course that Rick Richard is charting for
Columbia and endorse his game plan for making the new Columbia a
major player in the nation's energy marketplace and a company that
is committed to providing its customers with real choices and its
shareholders with increasing value."
From 1985 to 1995, prior to the formation of Gem Energy
Consulting, Abbott was a vice president for various business units
within Enron Corporation. Among her many responsibilities were
managing Enron's national marketing of unregulated natural gas,
directing marketing and supply for Transwestern Pipeline Co., an
Enron subsidiary, establishing Enron's first approach to trading and
valuing "basis"( natural gas locational price differentials) and
developing on and off balance sheet financing products for storage
operators and end-users.
Before joining Enron, Abbott was vice president of policy
analysis for the Interstate Natural Gas Association of America
(INGAA) where she organized the first Policy Analysis Department.
From 1977 to 1982, she directed a number of analytic offices in
the Department of Energy, making policy recommendations on
deregulation of natural gas and electricity. While in Washington,
she also served at the White House Office of Energy Policy and
Planning and at the Environmental Protection Agency.
Abbott holds a master's degree in public policy from the John F.
Kennedy School of Government at Harvard University and a bachelor's
degree with high honors from Swarthmore College in Pennsylvania.
The Columbia Gas System, Inc., is one of the nation's largest
natural gas systems. Its 17 operating subsidiaries are engaged in
the exploration, production, purchase, marketing, storage,
transmission and distribution of natural gas as well as other energy
operations including electric power generation.
/CONTACT: Bill McLaughlin, 302-429-5443, or Bill Chaddock,
302-429-5261, or financial, Tom Hughes, 302-429-5363, or Ken Murphy,
302-429-5471, all of Columbia Gas/
OLDWICK, N.J., Jan. 18, 1995 -- Effective
A.M. Best Company has raised the "B+" (Very Good) Best's Ratings of
three life insurance subsidiaries of Southwestern Financial Corp. to
"B++" (Very Good) and removed their ratings from "under review"
The companies include Southwestern Life Insurance Company,
Constitution Life Insurance Company and Union Bankers Insurance
Company, all of Dallas.
This rating action follows Southwestern Financial Corp.
completing its acquisition of these companies and a review of the
ongoing operations and financial structure of the group with
management. Southwestern Financial is a newly formed entity
sponsored by PennCorp Financial Group and Knightsbridge Capital Fund
I.L.P., with PennCorp holding a 65% interest. Southwestern Financial
Corp. purchased these units from I.C.H.
Corp. pursuant to a
bankruptcy court auction in which the winning bid was $260 million,
consisting of $210 million in cash $40 million in convertible notes
and $10 million in Penncorp common stock.
A.M. Best anticipates that this acquisition by Southwestern
Financial will afford the life insurance subsidiaries an enhanced
level of financial stability with the ultimate backing of PennCorp
and Knightsbridge. These insurance companies had previously been
hindered in their operations by the well publicized problems of
I.C.H., the former parent organization. It is also noted that the
life insurance companies continue to be well capitalized, have ample
liquidity, maintain strong asset and liability portfolios, and have
viable marketing franchises in their fields of operation.
In addition, the following PennCorp subsidiaries were removed
from "under review" status and affirmed with a Best's Rating of
"B++" (Very Good): Pioneer Security Life Insurance Company, American-
Amicable Life Insurance Company of Texas and Pioneer American
Insurance Company, all of Waco, Texas; Professional Insurance Corp.,
Jacksonville, Fla.; Occidental Life Insurance Company of North
Carolina, Raleigh, N.C.; and Executive Fund Life Insurance Company
and Pennsylvania Life Insurance Company, both of Lemoyne,
Also, Georgia International Life Insurance Company and Integon
Life Insurance Corp., both of Winston-Salem, N.C., were removed from
"under review" status and affirmed with a Best's Rating of "B+"
(Very Good), while Peninsular Life Insurance Co., Raleigh, N.C., had
its Best's Financial Performance Rating of "5" (Average) affirmed.
Unaffected by this announcement were the "NA-4" (Rating
Procedure Inapplicable) designations held by Integon Financial Life
Insurance Corporation, Winston-Salem, and Pacific Life and Accident
Insurance Company, Austin, Texas. Marquette National Life Insurance
Company, Louisville, Ky., another subsidiary of I.C.H. that has been
acquired by Southwestern Financial Corp. as part of this
transaction, also maintains its Best's Classification of "NA-4."
/CONTACT: Tom Upton of A.M. Best Company, 908-439-2200, x5380/
OAK BROOK, Ill., Jan. 18, 1995--Growth Environmental,
Inc., an Oak Brook, Ill. based environmental services company,
announced today that two of its operating subsidiaries, Growth
Environmental Services, Inc. and Growth Energy Services, Inc.,
intend to seek protective relief under Chapter 11 of the Bankruptcy
Code. The subsidiaries will continue to work to restructure their
finances and hope to quickly emerge from Chapter 11.
As previously announced, effective at the close of business Dec.
11, 1995, the company's common stock no longer trades on The Nasdaq
Growth Environmental, Inc. provides consulting, engineering,
remediation and analytical services to commercial and industrial
clients primarily in the continental U.S.
/CONTACT: Michael N. Marsh, executive vice president, Growth
SAN JOSE, Calif.--Jan. 18, 1996--Digital
Microwave Corp. (NASDAQ:DMIC) today reported a net loss of $6.7
million ($0.43 per share) on sales of $32.7 million in the third
quarter ended Dec. 31, 1995, compared with net income of $2.8
million ($0.20 per share) on sales of $48.9 million in the third
quarter of the prior fiscal year.
The financial results for the third quarter ended Dec. 31, 1995
include one-time charges of $7.5 million, and a one-time tax credit
of $2.0 million.
Sales for the first nine months of fiscal 1996 were $114.2
million, compared to sales of $120.3 million for the first nine
months of fiscal 1995. For the first nine months of fiscal 1996,
the company reported a net loss of $6.2 million ($0.43 per share),
compared with net income of $7.0 million ($0.50 per share) for the
first nine months of the previous fiscal year.
During the third quarter, the company received $40 million in
new orders shippable over the next 12 months. The 12-month backlog
at Dec. 31, 1995 was $74 million (net of orders cancelled during the
quarter), compared to $76 million at Sept. 30, 1995.
Charles D. Kissner, president and chief executive officer of
Digital Microwave Corp., attributed the third quarter loss to
"inventory and other reserves taken this quarter, as well as lower
revenue, as previously anticipated. As we previously announced, the
company's recent restructuring, reductions in the workforce, and
changes in the product mix and backlog prompted the need for the
additional charges. We are confident that the actions taken in the
third quarter will strengthen the company's position as we continue
to address the worldwide market demand for wireless communications.
"We are encouraged by the 21% increase in new orders over the
prior quarter. Orders in the Asia Pacific region were particularly
strong. We are also pleased by the positive reception in the
marketplace for the SPECTRUM II product line," Kissner said.
"We are optimistic as we move forward with a significantly
improved balance sheet position, broad product offering, and focused
management team," Kissner added.
Headquartered in San Jose, CA, Digital Microwave Corp. is a
leading worldwide designer, manufacturer and marketer of advanced,
high-performance digital microwave radios and other short- and
medium-haul communications products, systems and services. This
comprehensive family of technologically advanced products is
designed for use in cellular telephone systems, private networks and
other wireless telecommunications applications worldwide. -0-
DIGITAL MICROWAVE CORP.
CONDENSED CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
Dec. 31, Dec. 31,
1995 1994 1995 1994
Net sales $32,698 $48,921 $114,183 $120,289
Cost of sales 32,329 36,691 93,581 86,539
Gross profit 369 12,230 20,602 33,750
development 2,731 2,910 8,567 8,223
Selling, general and
administrative 6,936 5,998 20,279 17,568
Total operating expenses 9,667 8,908 28,846 25,791
Operating income (loss) (9,298) 3,322 (8,244) 7,959
Other income (expense) 566 (254) 81
Income (loss) before
income tax (8,732) 3,068 (8,163) 7,727
Tax provision (credit) (2,010) 307 (1,953) 773
Net income (loss) $(6,722) $ 2,761 $ (6,210) $ 6,954
Net income (loss) per share $( 0.43) $ 0.20 $ ( 0.43) $ 0.50
Weighted average shares
outstanding 15,772 13,955 14,592 13,798
DIGITAL MICROWAVE CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
Dec. 31, March 31,
Cash $ 2,889 $ 3,019
Accounts receivable - net 30,670 32,513
Inventories 36,536 46,732
Other current assets 3,702 6,344
Total current assets 73,797 88,608
Property & equipment - net 15,355 13,977
Total assets $89,152 $102,585
Liabilities and Stockholders' Equity
Lines of credit $ 2,035 $11,700
Note payable - current 3,333 3,364
Capital lease obligations - current 1,010 776
Accounts payable 12,680 26,373
Income taxes payable 1,195 1,629
Other accrued liabilities 15,922 17,770
Total current liabilities 36,175 61,612
Note payable - long term 2,778 5,556
Capital lease obligations - long term 909 806
Total liabilities 39,862 67,974
Stockholders' equity 49,290 34,611
Total liabilities and
stockholders' equity $89,152 $102,585