NEW YORK, Feb. 16, 1996 - The common shares of href="chap11.elpaso.html">El Paso
Electric began trading today on the American Stock Exchange.
El Paso's oldest firms, the Company provides electrical power to El
Paso and the areas of the Rio Grande Valley in West Texas and
Southern New Mexico.
Founded in 1901, El Paso Electric is engaged in the generation,
transmission, and distribution of electricity. Its service area
extends approximately 110 miles northwest from El Paso to the
Caballo Dam in New Mexico and 120 miles southeast from El Paso to
Van Horn, Texas. The Texas utility services over 250,000 customers
in the residential, commercial, industrial and wholesale markets.
The Company was recently reorganized with its Plan of
Reorganization and emergence from Chapter 11 rendered effective on
Monday, February 12, 1996. The Company had been operating under
Chapter 11 since January of 1992.
"We're very pleased with this new relationship between El Paso
Electric and the American Stock Exchange," said David H. Wiggs,
Jr., chief executive officer and chairman of the board of El Paso
Electric. "Along with the recent emergence of the Company from
Chapter 11 bankruptcy, trading the new EPE stock on the American
Stock Exchange marks an exciting new beginning for the Company."
The stock will initially trade on a 'when issued' basis under
the ticker symbol EE.WI. The stock opened at 5/8 on 2,500 shares.
Streicher, Lovett, Frey has been chosen as the specialist unit.
As the nation's second largest exchange, the American Stock
Exchange is the only primary marketplace for stocks and derivative
CONTACT: Yolanda Cain of American Stock Exchange, 212-306-1671,
MEMPHIS, Feb. 16, 1996 - Harrah's Entertainment, Inc.
(NYSE: HET) today reaffirmed in writing its commitment to use its
best efforts to bring the Harrah's
Jazz Company (HJC) partnership's
bankruptcy proceeding to a successful conclusion for all interested
parties. In support of that commitment, and in response to the
state of Louisiana's request for more details before entering
negotiations, Harrah's Entertainment sent the State a proposed
outline of restructuring.
In an outline summarizing the proposed restructuring of HJC, to
be accomplished in connection with confirmation of a plan of
reorganization supported by Harrah's Entertainment, Harrah's
Entertainment reiterated its commitments to the project, including
its willingness to deliver a new completion guarantee that would
ensure completion of the project (together with a mutually
acceptable third party guarantee or other financial support) and its
commitment to provide debtor-in-possession financing of up to $10
million, depending on timing of the confirmation of the
Harrah's Entertainment also stated that under a proposal
submitted to bondholders, Harrah's Entertainment, Inc., or a
subsidiary thereof will contribute up to $75 million of new equity
capital and other existing partners of HJC will be given an
opportunity to contribute part of this. Under a proposed plan, the
Bondholders would exchange their current $435 million of 14 1/4
percent (plus contingent interest) First Mortgage Notes due 2001 for
(1) $187.5 million of 8 percent (plus contingent interest)
Subordinated Debentures due 2006, and (2) 50.1 percent of equity, of
the restructured HJC.
In addition, Harrah's Entertainment proposed that the State and
a restructured HJC would effect a mutually satisfactory business
resolution of issues surrounding the impact of riverboat casino
operations in New Orleans.
In the proposal, Harrah's Entertainment suggested that with
approximately $200 million in new capital and an additional $15 to
$20 million in soft costs, a casino of approximately 3,000 slot
machines and 140 table games could be completed and accommodated on
the ground floor of the existing Canal Street Casino Structure.
Assuming a plan is confirmed by May 31, 1996,a first phase of a
casino designed and configured for successful operation based on
current market conditions could be open on Canal Street by year end
when the nation's attention will be focused on the city of New
Orleans as it hosts the Sugar Bowl National Football Championship,
followed by the Super Bowl and later the NCAA Basketball finals.
Harrah's Entertainment, Inc. looks forward to the State
scheduling a meeting to resolve outstanding issues. It is Harrah's
Entertainment's hope that this meeting can lead to a mutually
acceptable plan of reorganization that can be submitted to the
Bankruptcy Court for approval.
CONTACT: Ralph Berry, Harrah's Entertainment, Inc., 901-762-8629
SACRAMENTO, Calif., Feb. 16, 1996 - SAGE Analytics
International, Inc. (OTC Bulletin Board: SAII) announced today that
due to the lack of revenues, the company will be experiencing a cash
shortage late in the second quarter unless it experiences an
increase in product sales. Charles R. Cole, Chairman and CEO,
stated that the primary reason for the lack of revenue is due to the
longer-than-anticipated sales cycle for SAGE Analytics' products,
consequently delaying orders and revenue. Mr. Cole stated that the
company continues to believe in the market need for ProActive
Discipline, a behavior management system for public schools, and
Critical Issue Analysis, a software decision support tool designed
for business and government. However, due to the current budget and
management crisis school systems are facing, many have delayed the
purchase of ProActive Discipline in order to address problems
perceived as more immediate. In addition, the delay in passing a
federal budget adversely affected certain federal agencies'
interests in pursing Critical Issue Analysis.
In light of the lack of revenues, management has already taken
actions to implement cost savings procedures in order to conserve
cash including the lay-off of certain personnel, salary reduction
for management and reducing expenses. Further, to reduce regulatory
expenses, SAGE has filed a form suspending its duty to file reports
with the SEC because it has less than 300 shareholders of record.
The Board of Directors of SAGE Analytics International, Inc. is
seeking all methods of raising cash including licensing agreements,
debt or equity financing or sale of the company. In the event the
company is not successful in raising additional cash or if revenues
do not increase within the next few months, the company may be
required to seek protection under bankruptcy laws.
CONTACT: Charles R. Cole, Chairman and CEO of SAGE Analytics
International, Inc., 916-648-3011
SUNNYVALE, Calif. -- Feb. 16, 1996 -- Radius Inc.
(NASDAQ:RDUS) today announced financial results for the first
quarter of its 1996 fiscal year ended Dec. 30, 1995.
For the quarter, Radius reported net revenues of $32.7 million
and a net loss of $9.8 million or $0.57 per share. The consolidated
results for the prior year quarter, which included an extraordinary
charge of $12.4 million related to settlement of litigation, were
net revenues of $79.2 million and a net loss of $11.0 million or
$0.78 per share.
The company completed the sale of its monochrome monitor
business during the quarter. In early 1996, the company completed
the divestiture of its Color Server Group and its Mac OS-compatible
All assumptions, anticipations, and expectations contained
herein are forward-looking statements that involve uncertainty and
risk. Actual results could differ materially from those projected
in such forward-looking statements. Each forward-looking statement
should be read in conjunction with the company's entire Quarterly
Report on Form 10-Q including, but not limited to, Management's
Discussion and Analysis of Financial Condition and Results of
Operations -- Certain Factors That May Affect Future Results, and
with Management's Discussion and Analysis of Financial Condition and
Results of Operations contained in the company's Annual Report on
Form 10-K for the year ended Sept. 30, 1995.
Radius Inc. delivers Super Resolution graphics cards and
displays, the highest-quality digital video and hardware and
software products to leading-edge computer users in the publishing,
graphics, video and education markets. The company's products are
available through a worldwide network of Radius authorized
resellers, system integrators, and distributors. -0-
Note to Editors: Radius is a trademark of Radius Inc. which is
registered in the United States and certain other jurisdictions.
Super Resolution is a trademark of Radius Inc. Mac OS is a
trademark of Apple Computer Inc. Other marks are the property of
Consolidated Balance Sheets
Dec. 31, 1995 Sept. 30, 1995 (1)
(unaudited) Assets: Current assets:
Cash $ 6,990 $ 4,760
Accounts receivable, net 25,308 61,644
Inventories 12,564 15,071
Prepaid expenses and
other current assets 12,091 2,336
Income tax receivable 517 519
Total current assets 57,470 84,330 Property
and equipment, net 2,572 3,031 Deposits and other
assets 512 517
$ 60,554 $ 87,878
Liabilities and shareholders'
equity (Net capital deficiency) Current liabilities:
Accounts payable $ 42,886 $ 73,098
Accrued payroll and related
expenses 6,083 5,815
Accrued warranty costs 2,510 3,170
Other accrued liabilities 11,231 11,920
Accrued income taxes 1,636 1,665
Accrued restructuring and
other charges 16,980 17,013
Short-term borrowings 43,795 29,489
Obligation under capital
leases - current portion 1,524 1,494
Total current liabilities 126,645 143,664
Obligations under capital
leases - noncurrent portion 831 1,331
Commitments and contingencies
Shareholders' equity: (Net capital deficiency)
Common stock 117,127 113,791
Common stock to be issued 8,695 12,022
Accumulated deficit (192,776) (182,993)
adjustment 32 63
Total shareholders' equity
(Net capital deficiency) (66,922) (57,117)
$ 60,554 $ 87,878
(1) The balance sheet at Sept. 30, 1995 has been derived from the
audited financial statements at that date but does not include all
of the information and footnotes required by generally accepted
accounting principles for complete financial statements.
Consolidated Statements of Operations
(In thousands, except per share data; unaudited)
Three Months Ended
Net sales $ 32,652 $ 79,235 Cost of
sales 28,607 56,758
Gross profit 4,045 22,477
Research and development 3,630 4,118
Selling, general and
administrative 9,961 15,882
Total operating expenses 13,591 20,000
Income (Loss) from operations (9,546) 2,477
Other expense (46) (920)
Settlement of litigation -- (12,422)
Loss before income taxes (9,592) (10,865)
Provision for income taxes 191 156
Net loss $(9,783) $ (11,021)
Loss per share:
Net loss per share $(0.57) $(0.78)
Common and common equivalent
shares used in computing net
loss per share 17,248 14,215