SACRAMENTO, Calif. -- Feb. 6, 1996 -- The
California Public Employees' Retirement System (CalPERS) today
released its top ten list of Corporate America's financial
underperformers.
The targeted companies will serve as the focus of the System's
corporate governance activism for the 1996 proxy season.
"The time has come to publicly identify the companies that have
failed to make the financial grade, compared to their industry
peers," said Dr. William D. Crist, President of the CalPERS Board of
Administration. "These companies will receive close scrutiny and be
the subject of intense efforts on our part to enhance performance
for the benefit of our beneficiaries and all shareholders."
The "Focus Ten" target companies include, in alphabetical order:
Applied Bioscience of Arlington, Virginia; Bassett Furniture of
Bassett, Virginia; Charming Shoppes of Bensalem, Pennsylvania;
Edison Brothers Stores of St.
Louis, Missouri; Melville Corporation
of Rye, New York; Oryx Energy Company of Dallas, Texas; Rollins
Environmental Services of Wilmington, Delaware; Stride Rite
Corporation of Cambridge, Massachusetts; United States Surgical of
Norwalk, Connecticut; and Venture Stores of O'Fallon, Missouri. Of
these companies, Oryx Energy and Melville appear on the list for the
second year in a row.
CalPERS' "Focus Ten" rank among the poorest long-term relative
performers in the pension fund's domestic portfolio of more than
1,500 companies. Many of this year's companies are outside of the
Fortune 200 family.
"Now that we've been successful with Fortune 200
underperformers, we're moving further down the Corporate America
food chain -- to the mid-size, less-than-household name companies,"
said Crist. "Smaller companies should take heed from Corporate
America's giants who have turned their companies around through
measures suggested by active investors. They can no longer use the
industry downturn as an excuse for their underperformance."
A Wilshire Associates study of the "CalPERS Effect" of corporate
governance examined the performance of 53 companies targeted by the
System over a five year period. Results indicated that while the
stock of these companies trailed the Standard & Poor's 500 Index by
75.2 percent in the five year period before CalPERS acted, the same
stock prices outperformed the index by 54.4 percent in the following
five years, adding approximately $150 million annually in excess
returns.
As in the past, CalPERS' strategy is to ask for a meeting with
each company's independent directors to discuss issues of
performance and shareholder value. If these companies fail to
cooperate, CalPERS is prepared to take more aggressive actions.
"If we need to engage in aggressive `Just Vote No' campaigns or
utilize extensive proxy solicitations to support our proposals, we
will do so," said Richard H. Koppes, Deputy Executive Officer and
General Counsel of CalPERS.
During the 1996 proxy season, CalPERS will focus on eight issues
that address components of board structure and performance of the
"Focus Ten" companies. The eight issues include:
Thus far, CalPERS has met with independent directors of five
companies (Applied Bioscience, Melville, Oryx Energy, Stride Rite,
and U.S. Surgical) and a meeting has been scheduled with Charming
Shoppes.
CalPERS has filed shareholder proposals at Oryx Energy, Stride
Rite, U.S. Surgical and Venture Stores. The Oryx Energy, Stride
Rite and Venture Stores proposals seek to de-stagger board terms.
The U.S. Surgical proposal calls for the board's chairperson to be
an independent director, separate from the current CEO/Chair Leon C.
Hirsch. U.S. Surgical's Board was recently named one of the five
worst boards among 200 large public companies by Chief Executive
magazine.
Due to the recent Chapter 11 bankruptcy action filed by Edison
Brothers Stores, CalPERS has joined other investors to urge the
bankruptcy court to appoint a committee of equity security holders.
CalPERS hopes that such a committee will be a vehicle to influence
and change the direction of management once Edison emerges from
bankruptcy.
CalPERS is currently scheduling meetings with Bassett Furniture,
Venture Stores and Rollins Environmental Services. On January 26,
CalPERS voted against the re-election of Rollins' board of
directors. CalPERS is the nation's largest public pension fund with
assets of more than $95 billion. The System provides retirement and
health benefits to more than one million current and retired public
employees.
CONTACT: California Public Employees' Retirement System
Brad Pacheco/Pat Macht, 916/326-3991
CHICAGO, Feb. 6, 1996 - The Quaker Oats Company (NYSE:
OAT) today reported a net loss for the quarter ended December 31,
1995, as indicated in its December 21 news release. The loss
totaled $47.8 million, or a negative 36 cents per share, for the
December quarter. Net income for the quarter ended December 31, 1994
was $34.4 million, or 25 cents per share.
The loss reflects a $40.8 million pre-tax restructuring charge
to reconfigure the Snapple manufacturing network and to realign the
Company's European beverages and Pacific foods businesses. The loss
also reflects a write-off of excess Snapple inventories and a
decline in Snapple sales of approximately 9 percent for the quarter,
compared to the prior year.
December-quarter sales of $1.18 billion were 22 percent below
last year's $1.51 billion. Last year's sales included $427.1 million
from divested businesses. Excluding divested businesses, sales for
the quarter were up 9 percent.
The Company reported an operating loss in the quarter of $43.1
million versus operating income of $98.2 million a year ago. Last
year's results included $28.4 million of operating income from
businesses divested later in the fiscal 1995 year. Snapple reported
an $80.5 million total operating loss, reflecting a $24.4 million
pre-tax restructuring charge to eliminate inefficient capacity in
its supply chain system and a $19 million write-off of excess
inventories.
In addition, Quaker took restructuring charges totaling $16.4
million for the realignment of the European beverages and Pacific
foods businesses, in order to focus on the most attractive growth
areas and significantly improve the profitability of both
businesses. All restructuring actions are expected to result in
combined annual savings of about $15 million per year.
William D. Smithburg, Chairman, President and Chief Executive
Officer, said, "We have passed through the greatest transition
period in Quaker's history. These changes, by design, were made to
strengthen Quaker's portfolio. While 1995 results do not reflect
this potential, we are better positioned to aggressively pursue
profitable growth in fiscal 1996.
"Our first year with Snapple was disappointing. We have
assessed what we need to improve and have taken aggressive actions
such as realigning its manufacturing configuration. In addition, we
have energized our distributor network, enhanced merchandising, and
innovated with new advertising, labels, packaging and flavors.
We're ready to compete in the 1996 beverage season with our two
powerhouse brands - Gatorade thirst quencher and Snapple."
Gatorade and U.S. Foods, which combined represent about 65
percent of Quaker's sales, performed well in the December quarter.
Gatorade, hot cereals, rice/grain cakes, and Latin American foods
and beverages reported strong volume growth for both the quarter and
the six-month period. "We do not expect earnings growth for the
March quarter, compared to a year ago, because of the impact of
divested businesses and increased seasonality of the overall
portfolio. However, we are confident that our key businesses
provide Quaker with a strong base for improved performance in 1996,"
Smithburg said.
Six Month Results
The six months ended December 31, 1995 represent a transition
period to align Quaker's fiscal year with the calendar year
beginning January 1, 1996.
For the six months ended December 31, 1995, net income was $13.7
million, or nine cents per share, compared to $91.7 million, or 67
cents per share for the same period in 1994, which included a charge
of 3 cents per share for the cumulative effect of an accounting
change and a provision of 8 cents per share for litigation costs
related to a 1984 trademark case. Excluding the restructuring
charge, six-month earnings per share would have been 27 cents.
Sales of $2.73 billion were 13 percent below last year's $3.14
billion, which included $822.5 million from divested businesses.
Excluding sales from divested businesses, sales increased 18 percent
over the prior year. Operating income of $105.7 million compares to
$241.0 million in the prior year, which included $47.7 million of
income from divested businesses. This operating income decline of
56 percent primarily reflects the loss related to the Snapple
business, which totaled $85.2 million in the six- month period.
U.S. and Canadian Grocery Products
Sales in the December quarter for U.S. and Canadian Grocery
Products of $884.7 million were 13 percent below sales of $1.02
billion a year ago. Divested businesses contributed $178.5 million
to the prior-year quarter. Excluding divested businesses, sales
were up 6 percent from the prior year.
Overall volume increased approximately 1 percent, excluding
divested businesses and the recently acquired Snapple volume.
Businesses recording volume gains included Gatorade thirst quencher,
hot cereals, rice/grain cakes, corn goods and Quaker Canada. North
American Gatorade posted a 7 percent volume gain in the quarter,
enabling the business to reach the milestone mark of more than $1
billion in sales for the full calendar 1995 year. Snapple sales
were 9 percent below the prior-year's December quarter and also down
9 percent for the 1995 calendar year.
An operating loss of $11.1 million was reported for the December
quarter, compared to operating income of $72.8 million last year.
This reflects a restructuring charge of $24.4 million and an
inventory write- off of $19 million related to the Snapple business
which, excluding these charges, posted an operating loss for the
quarter due to lower volumes.
Excluding the loss from Snapple and operating income from
businesses divested, operating income in the quarter improved
modestly for the remaining U.S. and Canadian Grocery Products
business. This reflects improved performance in ready-to-eat and
hot cereals, frozen foods, Quaker Canada and the Aunt Jemima
businesses, partly offset by a decline in Food Service.
International Grocery Products
Sales in the December quarter for International Grocery Products
of $294.8 million were 40 percent below the prior year's $492.2
million, due largely to the divestitures of the European pet food
and Mexican chocolate businesses. Excluding divested businesses
sales were up 21 percent from the prior year. Businesses recording
volume gains in the quarter were Latin American foods and beverages,
Asian beverages and Pacific foods.
International Grocery Products recorded a $32.0 million
operating loss in the quarter including a restructuring charge of
$16.4 million to realign European beverages and Pacific foods. This
compares to operating income of $25.4 million a year ago. The
decline is due to the restructuring charge, the absence of operating
income from divested businesses, and underwriting costs incurred for
international expansion of grain-based foods and beverages.
The average number of shares outstanding in the quarter was
134.5 million, compared to 133.6 million a year ago.
The Quaker Oats Company is an international marketer of grain-
based foods and beverages.
THE QUAKER OATS COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Income
and Reinvested Earnings
(Unaudited--Dollars in Millions Except Per Share Data)
Three Months Ended Dec. 31 1995 1994
Net Sales $1,179.5 $1,507.9
Cost of goods sold 704.3 791.2
Gross profit 475.2 716.7
Selling, general and
administrative expenses 485.6 628.9
Restructuring charges 40.8 ---
Interest expense 29.2 25.9
Interest (Income) (2.3) (1.9)
Foreign exchange loss - net 3.3 0.9
(Loss) income before income taxes
and cumulative effect of
accounting change (81.4) 62.9
Provision for income taxes (33.6) 28.5
(Loss) income before cumulative
effect of accounting change (47.8) 34.4
Cumulative effect of accounting
changes - net of tax --- ---
Net (loss) income (47.8) 34.4
Preferred dividends - net of tax 1.0 1.0
Net (loss) income Available
for Common $ (48.8) $ 33.4
Per Common Share:
(Loss) income before cumulative effect
of accounting change $ (0.36) $ 0.25
Cumulative effect of accounting
change -- --
Net (loss) income $ (0.36) $ 0.25
Dividends declared $ 0.285 $ 0.285
Average Number of Common
Shares Outstanding
(in thousands) 134,457 133,569
Reinvested Earnings:
Balance beginning of period $1,521.0 $1,291.9
Net (loss) income (47.8) 34.4
Dividends (38.4) (39.1)
Common stock issued for stock
purchase and incentive plans (1.2) 0.4
Two-for-one-stock split-up -- (420.0)
Balance end of period $1,433.6 $ 867.6
Six Months Ended Dec. 31 1995 1994
Net Sales $2,733.1 $3,144.3
Cost of goods sold 1,529.3 1,616.4
Gross profit 1,203.8 1,527.9
Selling, general and
administrative expenses 1,078.1 1,322.5
Restructuring charges 40.8 ---
Interest expense 57.9 43.3
Interest (Income) (3.7) (3.8)
Foreign exchange loss - net 5.1 0.9
(Loss) income before income taxes
and cumulative effect of
accounting change 25.6 165.0
Provision for income taxes 11.9 69.2
(Loss) income before cumulative
effect of accounting change 13.7 95.8
Cumulative effect of accounting
changes - net of tax --- (4.1)
Net (loss) income 13.7 91.7
Preferred dividends - net of tax 2.0 2.0
Net (loss) income Available
for Common $ 11.7 $ 89.7
Per Common Share:
(Loss) income before cumulative effect
of accounting change $ 0.09 $ 0.70
Cumulative effect of accounting
change --- (0.03)
Net (loss) income $ 0.09 $ 0.67
Dividends declared $ 0.57 $ 0.57
Average Number of Common
Shares Outstanding
(in thousands) 134,355 133,567
Reinvested Earnings:
Balance beginning of period $1,499.3 $1,273.6
Net (loss) income 13.7 91.7
Dividends (77.7) (77.7)
Common stock issued for stock
purchase and incentive plans (1.7) ---
Two-for-one-stock split-up --- (420.0)
Balance end of period $1,433.6 $ 867.6
(Dollars in Millions)
Net Sales
Three Months Percent
Ended Increase
Dec. 31 1995 1994 (Decrease)
U.S. & Canadian
Grocery Products $ 884.7 $1,015.7 (12.9)%
International Grocery
Products 294.8 492.2 (40.1)%
Total Sales $1,179.5 $1,507.9 (21.8)%
Operating Income
Three Months Percent
Ended Increase
Dec. 31 1995 1994 (Decrease)
U.S. & Canadian
Grocery Products $ (11.1) $ 72.8 (115.2)%
International Grocery
Products (32.0) 25.4 (226.0)%
Total Operating
(Loss) Income $ (43.1) $ 98.2 (143.9)%
Less: General corporate
expenses 8.1 10.4
Interest expense-net 26.9 24.0
Foreign exchange
loss - net 3.3 0.9
(Loss) income before income taxes
and cumulative effect
of accounting changes $ (81.4) $ 62.9
(Dollars in Millions)
Net Sales
Six Months Percent
Ended Increase
Dec. 31 1995 1994 (Decrease)
U.S. & Canadian
Grocery Products $2,165.6 $2,202.7 (1.7)%
International Grocery
Products 567.5 941.6 (39.7)%
Total Sales $2,733.1 $3,144.3 (13.1)%
Operating Income
Six Months Percent
Ended Increase
Dec. 31 1995 1994 (Decrease)
U.S. & Canadian
Grocery Products $ 145.6 $ 208.1 (30.0)%
International Grocery
Products (39.9) 32.9 (221.3)%
Total Operating Income $ 105.7 $ 241.0 (56.1)%
Less: General corporate
expenses 20.8 35.6
Interest expense-net 54.2 39.5
Foreign exchange
loss - net 5.1 0.9
Income before income taxes
and cumulative effect
of accounting changes $ 25.6 $ 165.0
IRVINE, Calif. -- Feb. 6, 1996 -- Platinum Software
Corp. (NASDAQ:PSQL), Tuesday reported its financial results for the
second quarter of fiscal 1996.
Revenues for the second quarter of fiscal 1996, ended Dec. 31,
1995, were $10.2 million as compared to revenues of $13.3 million
for the second quarter of fiscal 1995. A net loss of $11.0 million
or 82 cents per share was reported for the quarter, as compared to a
loss of $2.8 million or 22 cents per share for the same quarter a
year ago.
During the quarter, the company recorded a restructuring charge
of $5.6 million related to the elimination of the direct sales force
and the decision to no longer market the version of the company's
Platinum(R) SQL Enterprise product, that ran on the Sybase database
and UNIX operating system.
The company's balance sheet at Dec. 31, 1995, showed cash of
approximately $15.0 million, accounts receivable of $12.6 million,
as well as deferred revenue of $7.4 million.
The company continues to strengthen its lead in technology for
the burgeoning middle market with its Platinum(R) SQL NT financial
software optimized for Microsoft's SQL Server 6.0 and Windows NT,
but sales through its new evolving NT VAR channel have been slower
than anticipated. In addition, the company recently released for
general availability the final core accounting modules for its
Platinum(R) for Windows product line and hopes to see new sales as
well as upgrade revenue for this product in upcoming quarters.
The company also announced that, in an effort to further reduce
expenses in light of current revenue levels, it has eliminated
approximately 60 positions or almost 15% of its work force, as of
today. Areas that were affected were finance, administration,
sales, marketing, development and consulting. This reduction in
force will result in an additional restructuring charge which will
be recorded in the third quarter of fiscal 1996.
In July 1995, at the time the company was required to make its
first principal payment, the company elected to pay the entire $15.0
million principal amount debenture issued in settlement of class
action securities litigation by issuing shares of common stock.
Today, the company announced that it is engaged in discussions with
the attorneys for the plaintiff class regarding rescinding the July
1995 election and reinstating the debenture. While the discussions
have not concluded, the company believes that the probable outcome
of these discussions will result in the reinstatement of the
debenture. As a result, the company has recognized, and included in
the December quarter loss, a charge of $500,000 for accrued interest
on the debenture for the period from August through December of 1995
and included the debenture on its balance sheet.
Platinum Software Corp., the financial software company,
develops and markets client/server financial software products for
corporations worldwide. The company's products enable organizations
to scale their technology investments to meet the changing needs of
their business environments. Founded in 1984, Platinum Software has
headquarters in Irvine, Calif.
PLATINUM SOFTWARE CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
Dec. 31, Dec. 31,
1995 1994 1995 1994
Revenues
License fees $4,201 $8,685 $10,977 $17,344
Consulting and
professional
services 2,872 2,397 6,101 6,330
Support services 2,786 2,106 5,211 3,951
Royalty income 297 139 505 282
10,156 13,327 22,794 27,907
Cost of revenues 5,042 5,202 10,550 10,022
Gross profit 5,114 8,125 12,244 17,885
Operating expenses:
Sales and marketing 4,513 4,706 10,694 8,769
General and
administrative 1,722 1,726 3,287 3,003
Software development 3,932 4,568 8,145 9,025
Charge for
restructuring 5,600 -- 5,600 --
15,767 11,000 27,726 20,797
Loss from operations (10,653) (2,875) (15,482) (2,912)
Other income (expense),
net (306) 39 40 128
Loss before provision
for income taxes (10,959) (2,836) (15,442) (2,784)
Provision for income taxes -- 11 -- 12
Net loss $(10,959) $(2,847) $(15,442) $(2,796)
Net loss per share $(0.82) $(0.22) $(1.13)
$(0.22)
Shares used in computing net
loss per share 13,353 12,811 13,682 12,705
PLATINUM SOFTWARE CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
ASSETS Dec. 31, June 30,
1995 1995
Current assets:
Cash and cash equivalents $ 14,952 $ 26,276
Restricted cash - 476
Accounts receivable, net 12,643 14,205
Notes receivable from
divestitures, net 903 957
Inventories 575 672
Prepaid expenses and other 1,963 1,785
Total current assets 31,036 44,371
Property and equipment, net 11,385 11,961
Notes receivable from
divestitures, net 2,787 3,534
Software development costs, net 2,661 3,000
Acquired intangible assets, net 1,853 2,403
Other assets 490 564
$ 50,212 $ 65,833
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of class action
settlement $ 8,208 $ -
Accounts payable 3,236 3,920
Accrued expenses 5,366 5,964
Accrued restructuring costs 2,253 1,192
Deferred revenue 7,381 8,980
Total current liabilities 26,444 20,056
Long-term portion of class action
settlement 8,209 15,812
Stockholders' equity:
Preferred stock 31,996 31,996
Common stock 13 13
Additional paid-in capital 81,472 80,391
Accumulated foreign currency
translation adjustments 259 304
Accumulated deficit (98,181) (82,739)
Total stockholders' equity 15,559 29,965
$ 50,212 $ 65,833
CONTACT: Platinum Software Corp., Irvine
Geri L. Schanz, APR, 714/450-4578
gschanz@platsoft.com
SARASOTA, Fla., Feb. 6, 1996 - Elcotel, Inc. (Nasdaq:
ECTL), a company that develops, manufactures and markets smart
payphone products and software for both domestic and international
telephone networks, announced results of operations for the third
fiscal quarter and nine months ended December 31, 1995.
In the third fiscal quarter ended December 31, 1995, net
revenues totaled $5,069,000, compared with $6,788,000 a year
earlier. Net loss after taxes was $332,000, or $0.04 per share,
down from a net profit of $793,000, or $0.10 per share a year
earlier. Average shares outstanding totaled 8,280,000, up from
7,760,000 a year ago.
For the nine months ended December 31, 1995, net revenues
totaled $16,373,000, compared with $18,956,000 a year earlier. Net
profit after taxes was $124,000, or $0.02 per share, down from
$2,158,000, or $0.28 per share a year earlier. Average shares
outstanding totaled 8,239,000, up from 7,778,000 a year ago.
C. Shelton James, Chief Executive Officer of Elcotel, commented,
"We have seen some positive results in the past few weeks in those
factors that have depressed our domestic sales for the past three
quarters. Another positive development is the passage of the
telecommunications reform legislation which will result in
significant near term and long term financial benefits to the
private payphone operators. These improvements bode well for the
future, however, they do not alter our view of this fiscal year as
one of transition. We continue to focus on our international
programs and initiatives with AT&T on both the international
opportunities and domestic regulated markets."
Mr. James continued, "In regard to the situation with Amtel, our
current position and evaluation of the potential impact of the Amtel
Chapter 11 Bankruptcy proceeding is unclear. Elcotel previously
sold to Amtel 3,500 payphones, for which Amtel owes Elcotel
approximately $3.2 million. This obligation is collateralized by a
security interest in payphones and an assignment of agreements
between Amtel and the site owners of certain locations. On October
10, 1995, Elcotel filed a motion seeking relief from the automatic
stay provisions of the Bankruptcy Code. Following the motion,
Elcotel and Amtel entered into an agreement providing for adequate
protection of Elcotel's asserted security interests and deferring a
hearing on the motion, which agreement is subject to bankruptcy
court approval. Under the adequate protection agreement, Amtel will
be required to insure, and provide proof of insurance covering, the
Elcotel secured equipment, to provide a monthly accounting of all
Elcotel equipment, to provide revenue and expense accountings for
those sites covered by the security agreements, not to move or
deinstall any Elcotel equipment and to return to Elcotel custody of
unused inventory. At this time even though the agreement is not
binding pending court approval, Elcotel has warehoused and is the
custodian of approximately 1,350 payphones and miscellaneous
pedestals and enclosures."
Mr. James added, "Amtel has been granted an extension to March
20, 1996, to file a reorganization plan with the Bankruptcy Court.
Elcotel is unable to predict the details of any such plan that may
be filed and consequently has no basis to determine the treatment
that may be proposed in any plan for Elcotel's $3.2 million
obligation."
Mr. James concluded, "Elcotel recognizes the potential for
impairment of its secured obligation but is unable at this time to
place a value on that eventuality. Reserves for impairment may have
to be taken, perhaps before the end of this fiscal year, March 31,
1996. Events scheduled over the next two months in the bankruptcy
proceeding may clarify options available to Elcotel and the
potential for recovery or loss of some portion of the $3.2 million
claim. In the meantime, we are working with Amtel's new management
to protect our assets and realize on our claims."
ELCOTEL, INC.
Operating Results
(Unaudited)
(In thousands, except per share amount)
Third Quarter Ended Nine Months Ended
December 31, December 31,
1995 1994 1995 1994
Net Revenues $ 5,069 $ 6,788 $16,373 $18,956
Net Profit/(Loss) before
Inc. Taxes $ (511) $ 900 $ 191 $ 2,616
Income Tax (Benefit)/
Provision $ (179) $ 107 $ 67 $ 458
Net Profit/(Loss) $ (332) $ 793 $ 124 $ 2,158
Net Profit/(Loss) per
common share $(0.04) $0.10 $0.02 $0.28
Weighted Avg. number of
common and common
equivalent shares
outstanding 8,280 7,760 8,239 7,778
WESTBOROUGH, Mass., Feb. 6, 1996 - Alden Electronics,
Inc., (Nasdaq: ADNEA; BSN: ADN) announced worldwide consolidated
revenues for the quarter ended December 31, 1995 of $2,914,414
compared to $4,629,292 for same quarter in the prior year. A net
loss of $1,990,859 ($0.91 per share) was posted for the quarter
compared to a net loss of $1,862,896 ($0.85 per share) for the same
quarter in the prior year. Consolidated revenues for the nine
months ended December 31, 1995 were $10,202,884 compared to
$13,296,098 for the same period in the prior year. A net loss of
$2,382,184 ($1.09 per share) was posted for the nine month period
compared to a net loss of $2,194,479 ($1.00 per share) for the same
period in the prior year. Losses for the quarter and nine months
included the effects of the Company recording a one time charge to
operations amounting to $766,886 ($0.35 per share) to reflect the
write down of certain equipment used in the distribution of weather
data to reflect impaired value over their estimated useful lives.
Decreased revenues for the quarter and nine months reflect
continuing reductions in paper and part sales on older weather
recorders, the discontinuation of certain low margin products
initiated during the fourth quarter of the prior fiscal year
including the Company's SP1600 SATPHONE satellite telephone and
office products and papers. The Company also experienced a decrease
in revenues from the sales of the ALDENSART (search and rescue
transponder) and MarineFax recorders. These revenue declines were
partially offset by increased shipments of meteorological display
terminals introduced in the prior fiscal year, including the Alden
WAFS (World Area Forecast System) and WeatherWorks terminals. For
the nine months ended December 31, 1995 revenues were also adversely
affected by a decline in large order sales of the Company's 9315CTP
printer. There was an increase in the number of customers who
purchased the 9315CTP printer and a reorganization of the network of
representatives who sell the printer. Additional international
marketing efforts have also been initiated. Revenues for the
quarter ended December 31, 1994 also included sales of satellite
receiver systems related to improvements in the Company's broadcast
system implemented during that quarter.
Decreases in gross profits for the quarter and nine months
reflect reduced revenues, reduced margins on new products during
their introductory phase, a charge to reflect estimated warranty
obligations not previously recorded and charges to reflect the write-
down of certain inventories to their estimated net realizable value.
Expenses were incurred relating to the consolidation of the Alfax
paper operation to the Company's UK facilities as well as severance
costs associated with that consolidation and other workforce
reductions undertaken during the quarter and nine month periods. In
the third quarter of the prior year, the Company recorded a charge
to earnings to reflect the expected costs of a recall of its SATFIND-
406 SURVIVAL(TM) EPIRB to repair a potential defect in a component
manufactured by one of its suppliers. A partial recovery of this
amount was recorded in the quarter ended June 30, 1995 to reflect
settlements with the supplier and designer of the component.
Operating costs for the quarter and nine months were reduced
during the period as a result of cost reduction measures implemented
during the year and the effects of reduced revenues on certain
direct selling expenses.
As of February 6, 1996 the Company employed 73 people worldwide,
compared to 105 at June 30, 1995.
The Company also announced that it is in negotiations with
several parties for the possible sale of certain assets,
manufacturing and marketing rights relating to its line of marine
electronics products. These discussions are preliminary in nature
and their outcome cannot be determined at this time. The Company is
also actively marketing its real estate holdings in Westborough,
Massachusetts in an effort to lease or sell excess space.
Alden is a premier provider of weather data and weather
information systems as well as highly reliable marine electronics,
and imaging products. Alden continues its 50 year tradition of
providing its customers in over 120 countries with innovative, top
quality products. Additional information about Alden and its
products can be obtained through access to Alden Electronics' World
Wide Web Home Page at href="http://www.alden.com/" target=_new>http://www/alden.com/">http://www.alden.com/(or send E-mail to
infoalden.com).
ALDEN ELECTRONICS, INC.
Results of Operations
Quarter Ended Nine Months Ended
December 31 December 31
1995 1994 1995 1994
Revenues $2,914,414 $4,629,292 $10,202,884 $13,296,098
Income (Loss before
income taxes) (1,943,826) (1,881,109) (2,309,280) (2,195,787)
Net income (Loss) (1,990,859) (1,862,896) (2,382,184) (2,194,479)
Income (Loss) per share $(0.91) $(0.85) ($1.09) $(1.00)
Condensed Balance Sheet
December 31, March 31,
1995 1995
Current assets $4,911,944 $6,455,280
Property, plant & equipment-net 3,283,768 4,171,009
Other assets 15,015 53,874
Total assets $8,210,727 $10,680,163
Current liabilities $3,306,547 $3,519,080
Long term debt 257,732 330,290
Deferred income taxes 103,000 103,000
Other long term obligations 200,000 ---
Stockholders' equity 4,343,448 6,727,793
Total liabilities and
stockholders' equity $8,210,727 $10,680,163
DAVIS, Calif., Feb. 6, 1996 - Calgene, Inc. (Nasdaq:
CGNE) announced a net loss of $5,730,000 ($.19 per share) on
revenues of $11,979,000 for the second quarter ended December 31,
1995. This compares with a net loss of $5,648,000 ($.19 per share)
on revenues of $13,290,000 during the same period last year. The
revenue decrease in the second quarter reflects a non-recurring
$3,750,000 technology license sale that occurred in the prior year.
Product sales in the second quarter increased by $2,278,000 largely
due to higher tomato sales at Calgene Fresh. Cotton seed sales
normally occur primarily in the third and fourth fiscal quarters.
For the six months ended December 31, 1995 Calgene reported a
net loss of $16,104,000 ($.53 per share) on revenues of $21,467,000
compared to a net loss of $15,186,000 ($.53 per share) on revenues
of $20,140,000 during the same period of the previous year.
Calgene's second quarter fiscal 1996 losses were essentially
unchanged from the prior year. Although losses from Calgene's
tomato operations were $2,616,000 lower and research and product
development expenses decreased $1,413,000 largely due to the
Company's third quarter fiscal 1995 implementation of a program to
reduce research expenses, these improvements were offset by the non-
recurring technology license sale that occurred in the prior year.
Most of the early FLAVR SAVR(TM) tomato varieties that Calgene had
available for production did not have acceptable yield and disease
resistance performance. Consequently, Calgene plans to temporarily
limit its tomato growing operations beginning in the Spring of 1996
until it is able to complete its development of FLAVR SAVR varieties
that have enhanced commercial agronomic qualities. Roger Salquist,
Calgene's Chairman and CEO said, "Completion of the transaction with
Monsanto and the resulting contribution of Gargiulo LP will not only
provide Calgene with a major fresh market tomato growing, production
and distribution company, but also provide tomato germplasm and
tomato breeding expertise that will significantly improve our
ability to develop FLAVR SAVR tomatoes with commercial agronomic
qualities and superior taste."
As previously announced, Calgene and Monsanto received a request
for additional information as part of the United States Department
of Justice's review under the Hart Scott Rodino Antitrust
Improvements Act of the transaction between Calgene and Monsanto
Company. Both Monsanto and Calgene have provided significant
documentary and other information to the Antitrust Division in
response to these requests. Both companies expect to be in
substantial compliance with the requests they received in the near
future. The parties are continuing to work with the Antitrust
Division to resolve any remaining issues and believe they will
ultimately resolve the Antitrust Division questions, if any, in a
manner which will permit the reorganization to proceed. The Company
has scheduled the shareholder meeting to approve the Monsanto
transaction for Monday, March 25. Subject to stockholder approval
and resolution of Antitrust Division's questions, the closing would
occur on or about March 25. The Company expects to mail the proxy
to shareholders the week of February 12.
As announced on February 2, 1996, Judge Joseph J. Farnan, of the
United States District Court for the District of Delaware, released
his decision in Enzo Biochem, Inc.'s suit against Calgene. Judge
Farnan rejected Enzo's claim that Calgene infringed Enzo's antisense
patents, and invalidated Enzo's patents because the disclosures in
the patents did not enable others to practice the claimed invention.
Judge Farnan also rejected Enzo's attack on Calgene's patent, and
held that Calgene's patent was valid.
Calgene is an agricultural biotechnology company that is
developing improved plant varieties and plant products for the fresh
tomato, cotton seed and specialty industrial and edible plant oils
businesses.
CALGENE, INC.
Condensed Consolidated Statements of Operations
($ in thousands, except per share amounts)
(Unaudited)
Three Months Six Months
Ended December 31 Ended December 31
1995 1994 1995 1994
Revenues:
Product sales, net $ 11,128 $ 8,850 $ 19,940 $ 15,113
Product development
revenues 550 4,166 850 4,433
Interest income 179 242 430 540
Other income, net 122 32 247 54
11,979 13,290 21,467 20,140
Costs and expenses:
Cost of goods sold 9,958 10,336 22,099 19,055
Research and development 3,290 4,703 6,513 8,509
Selling, general and
administrative 3,630 3,702 7,522 7,342
Interest expense 752 173 1,265 357
17,630 18,914 37,399 35,263
Minority interest share of net
(income) loss (13) (4) 9 26
Equity in net loss
of affiliate -- (11) (4) (65)
Gain (loss) on disposition
of assets (45) 8 (141) 9
Loss from operations before
income taxes (5,709) (5,631) (16,068) (15,153)
Provision for income taxes 21 17 36 33
Net loss $ (5,730) $ (5,648) $(16,104) $(15,186)
Net loss per share $ (0.19) $ (0.19) $ (0.53) $ (0.53)
Shares used in per share
calculations 30,264,159 29,683,717 30,256,875 28,650,108
EVANSVILLE, Ind., Feb. 6, 1996 - Shoe Carnival, Inc.
(Nasdaq: SCVL) today announced it will record a $3.6-$3.8 million
charge, after income taxes, against its fourth quarter earnings.
This charge includes the establishment of a reserve for expected
costs to be incurred in closing eight stores in 1996 and a reserve
against the cost of inventory for anticipated losses to be incurred
in the liquidation of clearance product in both the stores that will
close and those that will remain open.
Including this charge, the Company expects to record a loss of
between $0.64 and $0.67 per share in the fourth quarter and between
$0.52 and $0.55 per share for the year ended February 3, 1996. The
Company anticipates announcing audited fourth quarter and year-end
results in mid-March.
Wayne Weaver, Chairman, commented, "We began this year with a
very heavy inventory position and we established certain initiatives
for the reduction and reshaping of that inventory in 1995. During
the year, we reduced overall inventories by over $6 million even
though we added nine new stores. This equates to a 17% per-store
reduction. Additionally, despite the loss recorded for the year, we
have generated approximately $7 million from operating activities
mainly through our inventory reduction efforts and have reduced long-
term debt by $3.5 million from the end of January, 1995.
"We did not anticipate, however, that the retail climate would
turn out to be as weak and promotion driven as it was, particularly
in the last half of the year. Our efforts to reduce inventories so
significantly, and to do so profitability, were severely hampered by
this promotional environment.
"We believe we are being realistic in expecting 1996 to be
another weak year in the apparel retail industry. That assumption
is the basis for our 1996 plans, which include the restructuring of
our company through the closing of eight unprofitable stores and the
reduction of certain selling and administrative expenses. The cost
reductions include the elimination of approximately 10% of our
administrative staff. The charges we are taking in the fourth
quarter are in anticipation of effecting this restructuring early in
1996."
Management indicated that it will open five new stores in 1996.
All of the new stores will incorporate updated store design features
which were successfully tested in its Macon, GA store in the latter
part of 1995. Additionally, capital expenditure plans for 1996
include the remodeling of eight higher-volume stores with the new
store design, updating approximately half of its remaining stores
with new design graphics and implementing certain technological
enhancements designed to lower costs and improve the profitability
of its stores.
Weaver concluded, "Despite these fourth quarter charges, our
balance sheet remains very strong. Our long-term debt is less than
25% of total capital and we have approximately $13 million of unused
availability under our cash credit line. We feel that by closing
these stores and operating with a lower, faster-turning inventory,
we will be able to compete effectively in the footwear and apparel
retail industry in future years."
Shoe Carnival is a chain of 95 footwear stores located in the
Midwest and Midsouth. Combining "value pricing" (guaranteed lowest
prices) with carnival-like entertainment, Shoe Carnival is a leading
retailer of name brand and private label footwear for the entire
family. Headquartered in Evansville, IN, Shoe Carnival trades on the
NASDAQ Stock Market under the symbol SCVL.
CONTACT: Mark L. Lemond, Executive Vice President, Chief Operating
Officer and Chief Financial Officer of Shoe Carnival, Inc.,
812-867-4034
ALBANY, N.Y., Feb. 6, 1996 - Trans World Entertainment
Corporation (Nasdaq: TWMC) today announced that as part of its plan
to return the Company to historical levels of profitability, it will
close approximately 150 underperforming stores over the next two
years. These closings are in addition to the 180 stores closed in
1995. After the closings the Company will operate approximately 400
stores.
"Trans World has a core of strong, profitable locations. We
expect this continued focus on our best stores to build on the
improvements demonstrated by our holiday performance and maximize
our profitability within the framework of today's competitive retail
environment," said Trans World Chairman and Chief Executive Officer
Robert J. Higgins. "This strategic move will position the Company
with the most productive stores, allowing us to better serve our
customers and maintain our position as an industry leader."
"One year ago we began implementing a plan to improve the
Company's performance which included some new merchandising
initiatives, a renewed focus on customer service and the elimination
of some underperforming locations," added Higgins. "We have learned
from experience that focusing on our strongest markets and most
profitable locations has a significant impact, and will be a key to
building on the progress made last year. We will minimize the
impact of the store closings on our employees through normal
attrition and by placing the majority of our associates in other
stores within the Company."
As a result of the store closings, the Company will take a
restructuring charge of $35 million in the fourth quarter of the
fiscal year ended February 3, 1996. Approximately $17 million of
the charge is a non-cash write off of related store assets. The
Company currently forecasts net income for the fourth quarter of
fiscal 1995, before the impact of the restructuring charge, of $1.25
to $1.40 per share. The $35 million restructuring charge, after
income taxes, will reduce the fourth quarter profit by approximately
$23 million, or $2.38 per share. The Company expects to report a net
loss for the quarter after the restructuring charge of $.98 to
$1.13. The Company will realize significant benefits from the
elimination of the operating losses associated with these stores as
scheduled closings are completed, as well as generate significant
working capital which will be used to reduce debt and to explore
future business opportunities.
As a result of the restructuring charge, the Company is in
technical default of certain financial covenants contained in its
senior credit facilities. The Company has received waivers for the
defaults from its lenders and is working with its bank and
noteholder groups to restructure the applicable credit facilities.
Trans World Entertainment Corporation is one of the nation's
largest specialty retailers of prerecorded music and video products,
operating 542 stores under several names, including Record Town,
Tape World, For Your Entertainment, Saturday Matinee and Coconuts
Music & Movies.
CONTACT: Michael W. Kempner, E-mail: mkempner@mww.com, or Carreen
Winters, E-mail: cwinters@mww.com, both of MWW/Strategic
Communications, Inc. - Public Relations, 201-507-9500