TCR_Public/960423.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy News For - April 23, 1996



  1. BBN Announces Third Quarter Results
  2. Seagate reports third quarter loss
  3. Wieger named to top UDC post...
  4. DELOITTE & TOUCHE RESOLVES CLAIMS OF BONNEVILLE PACIFIC TRUSTEE









BBN Announces Third Quarter Results


            CAMBRIDGE, Mass. -- April 23, 1996 -- BBN
        Corporation (NYSE:BBN) today reported revenues of $71.3 million for
        the third quarter ended March 31, 1996, a 37 percent increase over
        the $52 million for the same quarter in fiscal year 1995.  For the
        nine months ended March 31, 1996, BBN reported a 26 percent revenue
        increase to $195.7 million, compared to revenues of $154.9 million
        in the first nine months of last year.  
        


            BBN's Internet activities, which include managed Internet
        services and value-added services, and the network management
        contract with America Online (AOL), had third-quarter revenues of
        $20.6 million, a 402 percent increase over the $4.1 million of the
        third quarter of fiscal year 1995 and a 27 percent sequential
        increase over the $16.2 million of the second quarter of fiscal
        1996. For the nine-month period, revenue from BBN's Internet
        activities increased 384 percent to $47.4 million, compared to
        revenues of $9.8 million for the same period a year ago.  

        
            For the third quarter ended March 31, 1996, BBN reported an
        operating loss of $30.2 million, which includes a $20.7 million
        predominantly non-cash charge for the write-off of goodwill and
        other costs associated with the company's reorganization announced
        in January.  The operating loss for the comparable quarter of fiscal
        1995 was $5.6 million.  For the nine months ended March 31, 1996,
        the operating loss was $51 million, which includes the $20.7 million
        charge, compared to $12.2 million for the comparable period in
        fiscal 1995.  On March 31, 1996, BBN's cash and short-term
        investment balance was $72.5 million.  
   

     
            The net loss for the three and nine month periods ended March
        31, 1996 was $29.1 million and $45.7 million, respectively.  This
        compares to net income of $74.5 million and $70.7 million for the
        three and nine month periods ended March 31, 1995.  Net income for
        the fiscal 1995 periods includes a pre-tax gain of $105 million from
        the sale of the assets of LightStream Corporation in January 1995.  
      

  
            The net loss per share for the three and nine months ended March
        31, 1996 was $1.64 and $2.59, respectively, compared to net income
        per share of $4.11 and $3.96, respectively, in the comparable
        periods of fiscal 1995.  

        
            BBN's Internet activities had an operating loss of $8.6 million
        for the third quarter ended March 31, 1996, compared to an operating
        loss of $3.2 million for the same period a year ago and an operating
        loss of $6.9 million in the second quarter of 1996.  For the nine-
        month period, BBN's Internet activities had an operating loss of
        $23.5 million, compared to an operating loss of $5.8 million for the
        comparable nine month period of last year.  
   

     
            BBN's losses reflect continued investment in Internet-related
        infrastructure and the development of new value-added Internet
        services, as well as operating losses at BBN Domain and the write-
        off of goodwill and other costs.  BBN is accelerating the expansion
        of its national backbone network for its Internet operations in
        order to meet increasing demand.  
      

  
        BUSINESS DIRECTION
        


            During the third quarter, BBN began implementation of its plan
        to focus the depth and breadth of the company's internetworking
        skills and advanced technology on the fast-growing market for
        Internet services to businesses and organizations.  Among Internet
        service providers, BBN offers the industry's most comprehensive
        range of services targeting business requirements for internal and
        external use of the Internet.  
        


            BBN provides "industrial strength" services, such as managed
        Internet access; managed network security; managed web server
        hosting; plus systems integration and application development
        services for complete solutions, including integration of new
        Internet and intranet applications with companies' legacy systems.
        In addition, BBN is utilizing its advanced internetworking
        technology and skills to develop solutions to emerging needs for
        "bandwidth-on-demand,"  application security, and integration of
        "best-of-breed" software from industry leaders to enable electronic
        commerce applications over the Internet.  

        
            BBN continues to pursue funded research and development of
        advanced internetworking technologies, which will enable future
        internetworking capabilities for government and business.  
   

     
        INTERNET BUSINESS REVIEW
      

  
            BBN Chairman and CEO George H. Conrades said, "Our progress in
        growing our recurring revenue stream for Internet services and
        increasing our overall revenue justifies our continued investment.
        This progress reinforces my confidence in our strategy to focus our
        resources on the enormous opportunity for business and
        organizational use of the Internet."  
        


            BBN's Internet activities achieved significant growth and
        expansion milestones during the third quarter:
        


        -- A key metric of BBN Planet's progress is the "rent roll,"  which
        is the annualized recurring revenue from BBN Planet's business.  The
        rent roll grew by 24 percent in the third quarter to $41 million
        from $33 million in the second quarter of 1996.  
        


        -- BBN Planet reported 340 new, high-speed Internet access orders in
        the third quarter, a 45 percent sequential increase over the 235 new
        orders in the second quarter of 1996.  Today, BBN provides Internet
        services to more than 1,900 customers, with an average annual
        recurring revenue per customer of over $20,000.  
        


        -- Significant customers that signed up with BBN Planet during the
        quarter include the Chicago Mercantile Exchange, Alex.  Brown &
        Sons, the City of Boston, National Semiconductor, Alliance BlueCross
        BlueShield and the Los Angeles Times.
        


        -- BBN now offers its U.S.-based multinational customers Internet
        connectivity through local access points in 20 countries, which it
        will soon expand to 220 countries.  This capability is an industry
        first, providing customers with a single source for consistent,
        worldwide Internet service.  
        


        -- BBN continues to expand its role in building, maintaining and
        operating a portion of the America Online nationwide, high-speed,
        dial-up network.  Approximately 40 percent of BBN's third-quarter,
        Internet-related revenue resulted from managing the AOL network, a
        significant portion of which consists of pass-through circuit costs.
        


        INTERNET BUSINESS RELATIONSHIPS
        


            In the third quarter, BBN continued to develop relationships
        with key players in the Internet industry:

        
        -- BBN continues to work with AT&T to expand Internet services to
        businesses and organizations.  Tom Evslin, vice president of AT&T
        WorldNet(SM) Service, said, "Managed, dedicated access to AT&T
        WorldNet Service is an important part of AT&T's Internet strategy,
        and technology and ongoing support from BBN Planet continue to be
        significant to the success of this service.  When AT&T launched its
        managed Internet access service last June, BBN Planet's expertise
        and reputation for high quality helped us get the service to market
        quickly and convincingly.  That same reputation and know-how remain
        important advantages in making sales and keeping customer
        satisfaction high as we cooperate to expand this service."  
   

     
        -- BBN, Cisco Systems, Inc., and Intel Corporation demonstrated at
        the Networld+Interop trade show a standards-based Internet
        infrastructure for "bandwidth on demand"  that enables real-time
        multimedia applications for the Internet, including desktop
        videoconferencing, real-time audio, video and collaborative
        computing.  

        
        -- BBN successfully launched a pilot program with Continental
        Cablevision to provide cable subscribers in the Boston area with
        high-speed Internet access via cable.  
   

     
        -- BBN signed an agreement with CMG Information Services under which
        CMGI will license BBN's PINpaper(TM) intelligent agent technology
        for use in CMGI companies' Internet search products.  
      

  
        BBN SYSTEMS AND TECHNOLOGIES
        


            BBN Systems and Technologies is realigning its operations to
        better support BBN's Internet strategy with advanced internetworking
        R&D, and on pursuing certain network-centric opportunities in the
        commercial and government markets.  
        


            Mr. Conrades said, "We do work for the U.S. government to enable
        secure messages over sensitive Defense Department networks, and we
        recently signed a contract to provide the U.S. Army with wireless,
        Internetworking-based voice and video communications for mobile
        operations.  These and other activities have real-world application
        for the military and for commerce.  We believe that our advanced
        development capabilities at BBN Systems and Technologies provide us
        with the opportunity to commercialize next-generation Internet
        technologies -- a distinct advantage over other Internet service
        providers."  

        
            BBN Systems and Technologies, which now includes the activities
        of BBN Hark, reported increased revenues for the third quarter,
        compared to the same quarter of a year ago.  Operating results
        reflect losses at BBN Hark.  
   

     
        BBN DOMAIN
      

  
            BBN Domain continued to make progress aligning its costs with
        revenues.  BBN Domain reported third quarter revenues of $10.5
        million, and an operating loss of $.9 million, compared to revenue
        of $10.2 million, and a loss of $1.5 million for the same quarter a
        year ago.  

        
            Headquartered in Cambridge, Massachusetts, BBN Corporation is a
        leading provider of Internet solutions to businesses and
        organizations.  For its fiscal year ended June 30, 1995, BBN had
        revenues of $215 million.  For more information, visit BBN's World
        Wide Web site at href="http://www.bbn.com" target=_new>http://www.bbn.com">http://www.bbn.com  
   


        
                               BBN CORPORATION
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (unaudited)
        
                            Three Months Ended       Nine Months Ended
                                 March 31,                March 31,
        Dollars in thousands,     1996         1995        1996         1995
           thousands, except
           per-share data
        
        Revenue:
           Services          $   60,440   $   42,954  $  168,635   $
        128,346
           Products              10,907        9,003      27,038
        26,526
                         ----------   ----------  ----------   ----------
                             71,347       51,957     195,673      154,872
                         ----------   ----------  ----------   ----------
        Costs and expenses:
           Cost of services      46,349       30,799     124,177
        86,801
           Cost of products       3,903        2,353       9,633
        9,343
           Research and           
         development
         expenses             6,447        6,613      17,530       18,832
           Selling, general and  
         administrative
         expenses            24,104       17,789      74,656       52,092
           Goodwill write-off
           and other charges     20,718                   20,718
                         ----------   ----------  ----------   ----------
                            101,521       57,554     246,714      167,068
                         ----------   ----------  ----------   ----------
        
        Loss from operations    (30,174)      (5,597)    (51,041)
        (12,196)
        
        Interest income           1,186        1,724       3,877
        2,934
        Interest expense         (1,077)      (1,103)     (3,336)
        (3,323)
        Minority interests          (24)     (11,826)       (108)
        (11,085)
        Other income
         (expense), net             (74)     105,096         (28)
        108,631
                         ----------   ----------  ----------   ----------
        
        Income (loss) before
         income taxes           (30,163)      88,294     (50,636)
        84,961
        Provision (benefit)
         for income taxes        (1,022)      13,827      (4,954)
        14,227
                          ----------   ----------  ----------   ----------
        
        Net income (loss)    $  (29,141)  $   74,467 $   (45,682)  $
        70,734
                                 
        
        Net income (loss)
         per share           $    (1.64)  $     4.11 $     (2.59)  $
        3.96
                                 
        
        Shares used in    
         per share
         calculations        17,802,000   18,118,000  17,670,000
        17,864,000
         
        
        Notes to Consolidated Statements of Operations:
      

  
        (1) The charge for three and nine months ended March 31, 1996 of
        $20.7 million or $1.16 per share, relates primarily to the write-off
        of goodwill and related costs of approximately $17.6 million and
        certain employee-related costs in connection with the Company's
        recently announced reorganization.  
        


        (2) Results for the nine months ended March 31, 1995 include revenue
        of $8.4 million and an operating loss of $3.7 million, at
        LightStream Corporation.  LightStream Corporation, an 80%-owned
subsidiary of the
        Company, sold substantially all of its assets to Cisco Systems, Inc.
        on January 11, 1995.  

        
        (3) Other income for the three and nine months ended March 31, 1995
        primarily includes a $105 million gain relating to the sale of
        substantially all of the assets of LightStream Corporation on
        January
        11, 1995.  It also includes amounts arising from contracts which
        were
        substantially completed in prior years.  
   


     
                                 BBN CORPORATION
                          CONSOLIDATED BALANCE SHEETS
        
                                            March 31       June 30
        Dollars in thousands                     1996           1995
                                            --------       -------
                                          (unaudited)
        
        Assets:
         Cash and cash equivalents
        (includes restricted             $   43,977     $  110,792
            cash of $4,646 at
            March 31, 1996 and
            $12,134 at June 30, 1995)
         Short-term investments              28,486
         Accounts receivable, net            67,309         53,933
         Other current assets                11,183          3,606
        
              Total current assets          150,955        168,331
        
         Property, net                       39,831         30,075
         Goodwill, net                                      17,927
         Other assets                         2,634          3,133
                                         ----------     ----------
        
                                         $  193,420     $  219,466
                                              
        
        Liabilities and Shareholders' Equity:
        
         Payables and other liabilities  $   44,146     $   33,803
         Accrued restructuring                7,726          9,216
         Deferred revenue                    22,794         16,914
                                         ----------     ----------
        
              Total current liabilities      74,666         59,933
        
         6% convertible subordinated
          debentures due 2012                73,170         73,510
         Minority interests                     752          3,471
         Redeemable convertible
          preferred stock                     8,000
         Shareholders' equity                36,832         82,552
                                         ----------     ----------
                                         $  193,420     $  219,466
                                              
        
                                    BBN CORPORATION
                              SUPPLEMENTAL INFORMATION
                                - BY BUSINESS UNIT -
                                     (unaudited)
        
        The following is a summary of revenues and operating income (loss)
        by business unit for the three and nine months ended March 31, 1996
        and 1995, presented on an as-reorganized basis.  
        
                               Three Months Ended       Nine Months Ended
                                   March 31                 March 31
        Dollars in thousands      1996         1995        1996         1995
                             ------       ------      ------       ------
        
        Revenue:
          Systems and
           Technologies (1)     $  40,976   $  38,475   $ 119,689   $
        112,091
          Internet
           Activities (2)          20,557       4,113      47,382
        9,815
          Domain                   10,529      10,230      30,066
        26,607
          LightStream
           Corporation (3)
        8,445
          Intercompany
           Eliminations (4)          (715)       (861)     (1,464)
        (2,086)
                             ---------   ---------   ---------   ---------
                            $  71,347   $  51,957   $ 195,673   $ 154,872
                                     
        
        Income (loss) from operations:
          Systems and
           Technologies (1)     $      80   $     105   $   2,370   $
        2,628
          Internet
           Activities (2)          (8,597)     (3,192)    (23,455)
        (5,815)
          Domain                     (922)     (1,468)     (8,825)
        (3,746)
          LightStream
           Corporation (3)
        (3,689)
          Goodwill write-off
           and other charges (5)  (20,718)                (20,718)
          Unallocated corporate  
           expenses, net              (17)     (1,042)       (413)
        (1,574)
                             ---------   ---------   ---------   ---------
                            $ (30,174)  $  (5,597)  $ (51,041)  $ (12,196)
                                     
        
        (1) Includes HARK business.
      

  
        (2) Includes Planet's internet access and value-added services
        business, and the America Online contract.  
        


        (3) LightStream Corporation, an 80%-owned subsidiary of the Company,
        sold substantially all of its assets to Cisco Systems, Inc.  on
        January 11, 1995.  
        


        (4) Eliminations consist of inter-divisional sales between
        business units.
        


        (5) The charge for three and nine months ended March 31, 1996 of
        $20.7 million or $1.16 per share, relates primarily to the write-off
        of goodwill and related costs of approximately $17.6 million and
        certain employee-related costs in connection with the Company's
        recently announced reorganization.  


        CONTACT:  BBN Corporation;
                  Peter W. Thonis, 617/873-3512;
                  Internet:  pthonis@bbn.com
        



Seagate reports third quarter loss reflecting merger-related
restructuring charges
        


            SCOTTS VALLEY, Calif. -- April 23, 1996 -- Seagate
        Technology, Inc. (NYSE:SEG) today reported revenue, net loss and net
        loss per share of $2.09 billion, $157 million and $1.57,
        respectively, for the quarter ended March 29, 1996.  The results for
        the three months ended March 29, 1996 include charges totaling
        $314.1 million for restructuring costs and other non-recurring
        charges associated with the Company's merger with Conner
        Peripherals, Inc.  (Conner) on February 2, 1996, and one time write-
        offs of in-process research and development incurred in connection
        with the acquisitions of OnDemand Software in March, 1996 and the
        minority interest in Arcada Software, Inc. in February, 1996.  The
        restructuring costs totaled $241.7 million, the one time write-offs
        of in-process research and development totaled $52.8 million and the
        other non-recurring charges associated with the merger totaled $19.6
        million.  Without the restructuring charge, the write-off of in-
        process research and development and the non-recurring merger-
        related costs and their related tax effects, fully diluted net
        income per share for the three months ended March 29, 1996 would
        have been $0.71.  

        
            Revenue, net income and fully diluted net income per share for
        the quarter ended March 31, 1995 were $1.87 billion, $83 million and
        $0.76, respectively.  Revenue, net income and fully diluted net
        income per share for the immediately preceding quarter ended
        December 29, 1995 were $2.34 billion, $149 million and $1.26,
        respectively.  The decline in revenue from the immediately preceding
        quarter was primarly due to a delay in the introduction of new
        products, production delays caused by component shortages and a
        decline in the shipment of tape drives.  

        
            For the nine months ended March 29, 1996, revenue, net income
        and fully diluted net income per share were $6.57 billion, $112
        million and $1.06, respectively.  This compares with revenue, net
        income and fully diluted net income per share of $5.19 billion, $206
        million and $1.92, respectively for the nine months ended March 31,
        1995.  In addition to the $314.1 million of charges noted above, the
        nine months ended March 29, 1996 include a write-off of in-process
        research and development of $3.6 million in connection with a change
        in accounting for the Company's 25% investment in SanDisk from the
        cost to the equity method and a write-off of in-process research and
        development of $2.8 million in connection with the acquisition of
        Sytron Corporation.  
   

     
            The merger with Conner was accounted for as a pooling of
        interests, and accordingly all prior periods have been restated to
        reflect this transaction.  Prior periods also reflect other
        restatements, none of which were material to any period presented.  
      

  
            During the quarter ended March 29, 1996, $265.5 million
        principal amount of the Company's 6-3/4% convertible subordinated
        debentures were converted to 6.2 million shares of the Company's
        common stock and $1.1 million were redeemed.  
        


            Seagate Technology is a data technology company that provides
        products for storing, managing and accessing digital information on
        the world's computer and data communications systems.  Seagate, at
        $8.6 billion in revenue for its last twelve months ended March 29,
        1996, is the largest independent disc drive and components company
        in the world.  Seagate's home page address on the World Wide Web is
        http://www.seagate.com" target=_new>http://www.seagate.com">http://www.seagate.com


        
                                SEAGATE TECHNOLOGY, INC
                                FINANCIAL HIGHLIGHTS (1)
                 (In Thousands Except Per Share and Percent Data)
         
         
                         Three Months Ended        Nine Months Ended
                        --------------------     --------------------
                        Mar. 29,    Mar. 31,     Mar. 29,    Mar. 31,
                          1996        1995         1996        1995
                        --------    --------     --------    --------
         
        Net sales         $2,093,326  $1,871,761   $6,573,822  $5,187,203
         
        Gross profit         337,581     335,733    1,187,504     971,102
         
        As a percent
          of sales              16.1%       17.9%        18.1%       18.7%
         
        Income (loss)
          before income
          taxes           $ (197,463) $  126,146   $  192,350  $  317,224
         
        Provision
          (benefit) for
          income taxes       (39,985)     43,063       80,104     117,423
         
        Income (loss)
          before
          extraordinary
          gain:
         
          Amount          $ (157,478) $   83,083   $  112,246  $  199,801
         
          As a percent
        of sa1es            (7.5%)       4.4%         1.7%        3.9%
         
        Net income(loss):
         
          Amount          $ (157,478) $   83,083   $  112,246  $  205,972
         
          As a percent
        of sales            (7.5%)       4.4%         1.7%        4.0%
         
        Income (loss) per
          share before
          extraordinary
          gain:
         
          Primary         $    (1.57) $     0.86   $     1.11  $     2.05
          Fully diluted        (1.57)       0.76         1.06        1.87
         
        Net income (loss)
          per share:
         
          Primary         $    (1.57) $     0.86   $     1.11  $     2.11
          Fully diluted        (1.57)       0.76         1.06        1.92
         
        Number of shares
          used in
          per share
          computations:
         
          Primary            100,412      96,436      101,330      97,458
          Fully diluted      100,412     122,402      111,761     120,163
         

        (1) Prior periods have been restated to reflect the merger with
        Conner Peripherals, Inc. on a pooling of interests basis.  The three
        and nine month periods ended March 31, 1995 are combined with
        Conners' three and nine month periods ended September 30, 1995 while
        the three and nine month periods ended March 29, 1996 are combined
        with Conners' three and nine month periods ended March 30, 1996.  

        
        CONTACT:  SEAGATE
                  Alan F. Shugart, CEO /
                  Donald L. Waite, CFO /
                  Julie Still, Press Relations /
                  Nancy Hamm, Investor Relations /
                  408/438-6550



Wieger named to top UDC post; DMB gains
equity
        partner in UDC; Former Shea executive named CEO; Pension management
        firm invests in UDC
        


            PHOENIX, AZ -- April 23, 1996 -- Garth Wieger has been
        named chief executive officer of UDC Homes
Inc.
, DMB officials
        announced Tuesday.
        


            Wieger has been Phoenix division president of Shea Homes for the
        past five years.  Under his leadership, Shea has become one of the
        top homebuilders in Phoenix growing from 276 closings in 1990 to
        1429 closings last year.
        


            The company also announced today that a partnership managed by
        Aldrich Eastman Waltch (AEW), a Boston-based real estate investment
        advisor, will become an equal partner with DMB in UDC Homes.  On
        behalf of institutional clients, AEW has invested in several Arizona
        real estate enterprises including Evans Withycombe Realty (NYSE:EWR)
        and the Westcor Co., as well as in a variety of public and private
        real estate operating companies throughout the country.  
        


            DMB acquired UDC Homes after it filed for Chapter 11 bankruptcy
        protection in 1995.  DMB is a Phoenix-based real estate developer
        whose projects include the 8,000-acre DC Ranch in Scottsdale, Ariz.,
        Superstition Springs in Mesa, Ariz., Centerpoint in downtown Tempe,
        Ariz., Phoenix Gateway Center at 44th Street and McDowell Road and
        The Financial Plaza in downtown Mesa.
        


            UDC is the third largest homebuilder in Phoenix.  In addition to
        its Phoenix operation, the company has operating divisions in
        Tucson, Ariz., San Jose, Calif., Los Angeles and San Diego.
        


            Drew Brown, president of DMB said, "We are delighted to have
        Garth assume the leadership role at UDC.  He brings extensive
        experience and demonstrated leadership abilities to the company."
        


            Wieger said, "With the recent acquisition of UDC by DMB and the
        financial strength brought to the organization, I am excited about
        this opportunity.  UDC has a strong presence in Phoenix, and we will
        work hard to build a team that has the same presence in each of
        UDC's three California divisions."
        


            Prior to heading Shea's Phoenix operation, Wieger was vice
        president of land acquisition and development for Continental Homes.
        He is a graduate of San Jose State University with a degree in
        business management.
        


        CONTACT:  DMB, Phoenix;
                  Drew Brown, 602/956-7877 /
                         or /
                  BJC, Phoenix;
                  Barbara DeMichele, 602/277-9530



DELOITTE & TOUCHE LLP RESOLVES
CLAIMS ASSERTED BY BONNEVILLE PACIFIC TRUSTEE IN BANKRUPTCY

        
            WILTON, Conn., April 23, 1996 - Deloitte & Touche LLP
        today reached a settlement with the bankruptcy Trustee of
Bonneville
        Pacific Corporation
resolving all claims asserted by the
Trustee in
        connection with the firm's professional services provided to the
        company.  Under the terms of the settlement, the Trustee will
        receive $65 million, a substantial portion of which will be paid by
        Deloitte & Touche's professional liability insurers.
        


            "The settlement frees us from the prospect of prolonged, costly
        litigation with an uncertain outcome and is an immediate and
        significant resolution for both parties," said J. Michael Cook,
        Chairman and Chief Executive Officer of Deloitte & Touche.
        "Although we believe that our services were performed in accordance
        with professional standards, this situation was an unfortunate event
        for all those touched by it.  We are pleased to have it behind us."
        


            Deloitte & Touche, one of the nation's leading professional
        services firms, provides accounting and auditing, tax, and
        management consulting services through more than 16,000 people and
        offices in more than 100 U.S. cities.


        CONTACT:  Laura Maxwell of Deloitte & Touche, 203-761-3522/