PURCHASE, N.Y., June 27, 1996 - Spectrum Information
Technologies, Inc. (OTC Bulletin Board: SPCLQ) announced that it has
filed an annual report on Form 10-K with the Securities and Exchange
Commission for the fiscal year ended March 31, 1996.
Spectrum reported a loss from continuing operations of $1.2
million on revenues of $8.5 million for the fiscal year, as compared
with a loss from continuing operations of $10.7 million on revenues
of $2.6 million for the 1995 fiscal year. Spectrum's fiscal 1996
revenues included a fully paid license fee that was part of an
agreement settling an arbitration with one of Spectrum's licensees,
without which revenues would have remained nearly unchanged from
fiscal 1995 to 1996.
Spectrum's net income for fiscal 1996 was $2.9 million, or $.04
per share, compared with a net loss of $14.3 million, or $.19 per
share, for the previous fiscal year. Spectrum noted that its net
income for this fiscal year included income from discontinued
operations of $4.1 million.
The annual report filed today reiterates Spectrum's business
strategy to shift the Company's focus from a licensing and royalty
business to the development and sales of mobile communications
software and related products. "Spectrum's new management team has
met important milestones resolving problems that we inherited," said
Donald J. Amoruso, Spectrum's Chief Executive Officer. "We must
exit bankruptcy to conclude this chapter and continue to focus on
meeting our objectives of developing and introducing innovative
mobile communications software products, expanding channels of
distribution and improving Spectrum's financial performance."
Spectrum also reported in the Form 10-K that each class entitled
to vote on the proposed plan of reorganization filed in the
Company's chapter 11 bankruptcy proceeding has accepted the plan.
Over 97% of Spectrum's voting unsecured creditors, representing over
99% of the dollar amount of claims voted, supported confirmation.
Over 95% of the 27.6 million shares of voted common stock accepted
Confirmation of the proposed plan is contingent upon settlement
of the class action lawsuits that were originally filed against
Spectrum in 1993. Implementation of the previously announced
framework to settle the class actions remains contingent upon
resolution of a coverage dispute with certain of the Company's
former insurance carriers and district court approval.
Spectrum's proposed plan of reorganization, if approved, will
result in a substantial dilution to existing Spectrum shareholders.
If the proposed plan is confirmed, existing shareholders should
obtain the majority of the 45% equity ownership in reorganized
Spectrum set aside for such shareholders and certain creditors.
CONTACT: Media - Michael Freitag of Kekst and Company,
212-593-2655; or Investors - Spectrum Information Technologies,
Inc., investor relations, 914-251-1800, Ext. 182
NEEDHAM, Mass., June 27, 1996 - Repligen Corporation
(Nasdaq: RGEN) today reported a net loss of $11,521,000, or $0.75
per common share, on total revenues of $10,859,000 for the year
ended March 31, 1996. The loss includes a one-time, non-recurring
restructuring charge of $3,567,000, or $0.23 per common share. This
compares to a net loss of $31,950,000, or $2.08 per common share, on
total revenues of $16,942,000 for the year ended March 31, 1995.
Expenses during fiscal 1996, including the restructuring charge,
were $22,380,000, compared with $48,892,000 for the previous fiscal
For the fourth quarter ended March 31, 1996, the company
reported a net loss of $5,647,000, or $0.37 per common share, on
revenues of $899,000. This compares to a net loss of $13,225,000,
or $0.86 per common share, on revenues of $5,117,000 for the same
period last fiscal year. Expenses for the fourth quarter of fiscal
1996 were $6,546,000, including the restructuring charge of
$3,567,000, compared with $18,342,000 for the same period the
previous year. The restructuring charge includes a non-cash charge
of approximately $2,321,000 associated with the write-off of
leasehold improvements and equipment no longer being utilized.
"Since the end of the fiscal year, we have completed a
significant restructuring of the company including closing
underutilized facilities and downsizing. In addition, liabilities
associated with certain equipment leases have been eliminated
through settlements with the lessors and, subsequently, excess
equipment was sold. These actions will be reflected in
significantly improved financial results for the first quarter of
fiscal 1997 ending June 30, 1996, and will insure that the company
has financial reserves sufficient to continue operations for at
least two years," said Walter C. Herlihy, President and Chief
Executive Officer of Repligen.
"Renewed financial stability will allow us to pursue internal
development of the combinatorial chemistry and high-throughput
screening technologies obtained as part of the acquisition of Glycan
Pharmaceuticals. It will also enable the company to outlicense the
intellectual property for its biological products in an orderly
fashion and to renew the Protein A product line," Mr. Herlihy
Repligen develops technologies for the discovery of new
pharmaceuticals through the high-throughput screening of compound
libraries with specific application to anti-inflammatory agents.
Its corporate headquarters are located at 117 Fourth Avenue,
Needham, MA 02194.
SELECTED CONSOLIDATED FINANCIAL DATA
Operating Statement Data:
Quarter Ended Year Ended
3/31/96 3/31/95 3/31/96 3/31/95
R&D $415,000 $2,569,000 $7,949,000 $10,988,000
Product 331,000 2,072,000 1,874,000 3,885,000
other 153,000 476,000 1,036,000 2,069,000
Total 899,000 5,117,000 10,859,000 16,942,000
Costs & Expenses:
R&D 2,120,000 6,366,000 12,314,000 31,012,000
S,G&A 447,000 1,026,000 4,925,000 4,673,000
Cost of goods
sold 412,000 501,000 1,516,000 1,535,000
Interest --- 124,000 58,000 372,000
charge 3,567,000 10,325,000 3,567,000 11,300,000
Total 6,546,000 18,342,000 22,380,000 48,892,000
Net loss $(5,647,000) $(13,225,000) $(11,521,000) $(31,950,000)
Net loss per common
shares outstanding $(0.37) $(0.86) $(0.75) $(2.08)
outstanding 15,365,000 15,357,000 15,370,000 15,356,000
Balance Sheet Data:
Cash and investments $7,222,000
Total assets $9,231,000
Stockholders' equity $4,809,000
TRENTON, Mich., June 27, 1996 - Hamlin Holdings, Inc., a corporation owned by Michael Wilkinson, was confirmed by the United States Bankruptcy Court for the Eastern
District of Michigan as the successful bidder for McLouth Steel
Products Corporation. McLouth is currently operating under Chapter
11 of the Bankruptcy Code.
Hamlin expects to close the sale within thirty days. During
this period, Hamlin expects to negotiate contracts with suppliers
and customers so as to insure an orderly start-up. Discussions are
already underway with suppliers and the United Steelworkers of
America, the union currently representing McLouth's hourly
employees, many of whose members are expected to be hired by Hamlin.
Hamlin will work closely with McLouth officials to insure an
orderly transition and to help McLouth deal with its remaining
assets, such as collection of its accounts receivable which are
being purchased by Hamlin.
Hamlin expects to embark on a rehabilitation and modernization
program for the mill immediately upon closing and to commence
operations at various units as the modernization program at such
units is completed.
CONTACT: Diane Brigham of McLouth Steel, 313-246-4002
PORTLAND, Ore., June 27, 1996 - WTD Industries, Inc.
(Nasdaq/NM: WTDI) today reported results for both the quarter and
the full fiscal year ended April 30, 1996.
For the fourth quarter ended April 30, 1996, WTD reported a net
loss of $1,252,000 or $0.17 per share.
These results compared with a net loss of $3,001,000, or $0.31
per share for the quarter ended April 30, 1995. Net sales were
$51.2 million for the quarter ended April 30, 1996, down 11 percent
from the fourth quarter of fiscal 1995.
For the year ended April 30, 1996, WTD reported a net loss of
$6,044,000, or $0.76 per share. These results compared with net
income of $3,700,000, or $0.14 per share for the year ended April
30, 1995. Net sales were $192 million for the year, down 30 percent
from last year.
"The weak lumber market and poor operating conditions that have
existed for over a year finally started to improve during our fourth
quarter which resulted in smaller operating losses for the quarter,"
said WTD president Bruce L. Engel.
"Despite the loss for the year, we were able to reduce our long-
term debt by $2.3 million and finish the year with cash of $4.6
million," Engel continued.
"Although chip prices are down from our 1996 fiscal year high,
lumber demand and prices are now significantly better than a year
ago. Current operating conditions are favorable and it is our goal
to maximize existing profit opportunities," Engel concluded.
WTD also announced the resignation of board member H. Raymond
Bingham, effective March 29, 1996. Mr. Bingham's departure was the
result of his demanding schedule and lack of time to dedicate to
future board business.
WTD Industries, Inc. operates facilities in Oregon, Washington
and Vermont, producing softwood and hardwood lumber products. WTD's
lumber is marketed domestically and internationally under the
TreeSource brand name.
WTD INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per-share amounts)
Three Months Ended Year Ended
April 30, April 30,
1996 1995 1996 1995
NET SALES $ 51,153 $ 57,751 $191,964 $274,966
COST OF SALES 48,594 58,237 186,514 262,334
GROSS PROFIT (LOSS) 2,559 (486) 5,450 12,632
SELLING, GENERAL &
ADMINISTRATIVE EXPENSES 2,240 2,443 9,685 10,366
REORGANIZATION CREDITS -- -- (409) (532)
OPERATING INCOME (LOSS) 319 (2,929) (3,826) 2,798
OTHER INCOME (EXPENSE)
INTEREST EXPENSE (1,277) (1,363) (5,318) (5,972)
MISCELLANEOUS 189 190 646 1,228
(1,088) (1,173) (4,672) (4,744)
INCOME (LOSS) BEFORE INCOME
TAXES (769) (4,102) (8,498) (1,946)
PROVISION FOR INCOME TAXES
(BENEFIT) 483 (1,101) (2,454) (5,646)
NET INCOME (LOSS) (1,252) (3,001) (6,044) 3,700
PREFERRED DIVIDENDS 569 596 2,364 2,126
NET INCOME (LOSS) APPLICABLE
TO COMMON SHAREHOLDERS $(1,821) $(3,597) $(8,408) $ 1,574
NET INCOME (LOSS) PER COMMON
- Primary $ (0.17) $ (0.31) $ (0.76) $ 0.14
- Fully diluted $ (0.17) $ (0.31) $ (0.76) $ 0.14
NUMBER OF COMMON SHARES
- Primary 11,077 11,420 11,077 11,492
- Fully diluted 11,077 11,452 11,077 11,510
WTD INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
April 30, April 30,
CASH AND CASH EQUIVALENTS $ 4,576 $ 6,023
ACCOUNTS RECEIVABLE, net 10,190 11,404
INVENTORIES 13,891 18,104
INCOME TAX REFUND RECEIVABLE 2,135 503
DEFERRED TAX ASSET 1,112 1,830
OTHER CURRENT ASSETS 8,548 13,323
TOTAL CURRENT ASSETS 40,452 51,187
PROPERTY, PLANT & EQUIPMENT, net 31,289 32,125
DEFERRED TAX ASSET 3,388 2,448
OTHER NON-CURRENT ASSETS 2,267 3,184
$ 77,396 $ 88,944
LIABILITIES AND STOCKHOLDERS' EQUITY
ACCOUNTS PAYABLE $ 5,791 $ 6,023
ACCRUED EXPENSES 6,198 7,466
TIMBER CONTRACTS PAYABLE 2,252 1,660
CURRENT MATURITIES OF LONG-TERM DEBT 1,159 2,298
TOTAL CURRENT LIABILITIES 15,400 17,447
LONG-TERM DEBT, less current
maturities 50,310 51,421
STOCKHOLDERS' EQUITY 11,686 20,076
$ 77,396 $ 88,944