SUNNYVALE, Calif. -- July 26, 1996 -- Radius Inc.
(NASDAQ:RDUSC) today announced financial results for the third
quarter of its 1996 fiscal year ended June 30, 1996.
Net revenues for the quarter were $20.0 million. Income from
operations was $954,000 which included $913,000 of restructuring
reserve reversals. Net income after interest, taxes and other
income related to previously announced product group divestitures
was $4.7 million or $0.26 per share. The consolidated results for
the third quarter of the prior fiscal year were net revenues of
$87.3 million and net loss of $3.1 million or $0.21 per share.
"Returning to operating profitability is a key milestone in
Radius' restructuring which began last October," said Chuck Berger,
Chairman and CEO. "We have focused on product lines where Radius
adds significant technology and therefore can earn higher margins.
Operating expenses have been reduced by over 70% and we have reduced
overall liabilities by $53.0 million since fiscal year ended 1995."
During the quarter, Radius introduced new graphics and digital
video products. The ThunderPower 1920 graphics card sets new
standards for graphic card performance and high end publishing
features while offering 1920 X 1080 and HDTV resolution.
VideoVision Studio PCI brings VideoVision technology to the PCI bus.
"Studio started the desktop digital video market three years ago and
continues to have the largest installed base of non-linear, digital
editing seats," Berger said. "We also upgraded Radius Edit
releasing version 2.0 which includes significantly enhanced audio
capabilities and more advanced video editing functionality."
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" contained
in such Quarterly Report, 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 fiscal year
ended September 30, 1995.
Radius Inc. delivers Super Resolution graphics cards and
displays, high-quality digital video 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.
Radius Inc.
Consolidated Balance Sheets
(in thousands)
June 30, September 30,
1996 1995 (1)
(unaudited)
Assets:
Current Assets:
Cash $ 3,264 $ 4,760
Accounts receivable, net 22,234 61,644
Inventories 15,825 15,071
Prepaid expenses and other
current assets 424 2,336
Income tax receivable 514 519
Total current assets 42,261 84,330
Property and equipment, net 1,475 3,031
Deposits and other assets 142 517
------- --------
$ 43,878 $ 87,878
Liabilities and shareholders'
equity (net capital deficiency)
Current liabilities:
Accounts payable $ 37,952 $ 73,098
Accrued payroll and related
expenses 2,196 5,815
Accrued warranty costs 687 3,170
Other accrued liabilities 8,866 11,920
Accrued income taxes 2,056 1,665
Accrued restructuring and other
charges 15,474 17,013
Short-term borrowings 22,920 29,489
Obligations under capital
leases-current portion 1,293 1,494
Total current liabilities 91,444 143,664
Obligations under capital
leases-noncurrent portion 321 1,331
Shareholders equity: (net
capital deficiency)
Common stock 126,243 113,791
Common stock to be issued - 12,022
Accumulated deficit (174,144) (182,993)
Accumulated translation
adjustment 14 63
Total shareholders' equity
(net capital deficiency) (47,887) (57,117)
-------- --------
$ 43,878 $ 87,878
(1) The balance sheet at September 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.
Radius, Inc.
Consolidated Statements of Operations
(in thousands, except per share data; unaudited)
Three months ended Nine months ended
June 30, June 30,
1996 1995 1996 1995
Net sales $ 20,034 $ 87,325 $ 83,261 $251,007
Cost of sales 13,470 65,211 67,175 184,882
Gross profit 6,564 22,114 16,086 66,125
Operating expenses:
Research and
development 1,092 4,990 6,241 13,780
Selling, general and
administrative 4,518 18,442 21,430 48,725
Total operating
expenses 5,610 23,432 27,671 62,505
Income (loss) from
operations 954 (1,318) (11,585) 3,620
Other income (expense),
net 3,975 (1,531) 21,090 (4,605)
Settlement of
litigation - - - (12,422)
Income (loss) before
income taxes 4,929 (2,849) 9,505 (13,407)
Provision for income
taxes 216 263 656 450
Net income (loss) $ 4,713 $ (3,112) $ 8,849 $(13,857)
Net income (loss) per
share:
Net income (loss) per
share $ 0.26 $ (0.21) $ 0.49 $ (0.96)
Common and common
equivalent shares
used in computing net
income (loss) per
share 18,412 14,791 17,950 14,386
WALTHAM, Mass. -- July 26, 1996 -- Interleaf Inc.
(NASDAQ:LEAF) today reported revenues of $19.1 million and a loss of
$3.8 million or ($0.22) per share for the quarter ended June 30,
1996. These results, which were in line with previously announced
preliminary results, compare with revenues of $23.1 million and a
profit of $0.5 million, or $0.03 per share for the first quarter
ended June 30, 1995.
Interleaf also reconfirmed that the company will incur a one-
time restructuring charge of approximately $4 million to $5 million
in the second quarter ending Sept. 30, 1996. The restructuring will
allow the company to reduce expenses and heighten the company's
focus on its integrated document management business.
Interleaf Inc.
Consolidated Statements of Operations
Three months ended June 30
1996 1995
In thousands, except for per share amounts (unaudited)
Revenues:
Products $ 7,046 $ 9,437
Maintenance 7,472 7,792
Services 4,536 5,898
Total Revenues 19,054 23,127
Costs of Revenues:
Products 1,626 1,660
Maintenance 1,308 1,369
Services 4,200 4,809
Total costs of revenues 7,134 7,838
Gross Margin 11,920 15,289
Operating Expenses:
Selling, general and administrative 11,422 10,982
Research and development 4,270 3,926
Total operating expenses 15,692 14,908
Income (loss) from operations (3,772) 381
Other income (expense) (28) 91
Income (loss) before income taxes (3,800) 472
Provision for income taxes -- --
Net income (loss) $ (3,800) $ 472
Net income (loss) per share $ (0.22) $ 0.03
Shares used in computing net income
(loss) per share 16,998 17,648
Interleaf Inc.
Consolidated Balance Sheets
June 30, 1996 March 31, 1996
In thousands, except for share and
per share amounts (unaudited)
Assets
Current Assets
Cash and cash equivalents $ 11,353 $ 12,725
Accounts receivable, net 15,339 19,771
Prepaid expenses and other current assets 2,222 2,112
Total current assets 28,914 34,608
Property and equipment, net 8,000 7,800
Intangible assets 8,617 6,164
Other assets 689 344
Total assets $ 46,220 $ 48,916
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable $ 2,886 $ 2,908
Accrued expenses 13,002 13,252
Unearned revenue 13,612 15,986
Other current liabilities 989 1,348
Total current liabilities 30,489 33,494
Other liabilities 260 3
Total liabilities 30,749 33,497
Contingencies
Shareholders' Equity
Preferred stock, par value $.10 per share,
authorized 5,000,000 shares:
Series A Junior Participating, none issued
and outstanding
Senior Series B Convertible, issued and
outstanding, 861,911 at June 30, 1996 and
923,304 at March 31, 1996 86 92
Common stock, par value $.01 per share, authorized
30,000,000 shares, issued and outstanding
17,453,978 at June 30, 1996 and 16,697,988
at March 31, 1996 175 167
Additional paid-in capital 76,210 72,348
Retained earnings (deficit) (60,758) (56,958)
Cumulative translation adjustment (242) (230)
Total shareholders' equity 15,471 15,419
Total liabilities & shareholders' equity $ 46,220 $ 48,916
LOS ANGELES, July 26, 1996 -- Authentic Fitness
Corporation (NYSE: ASM) announced that a decline in sales and gross
profit in the fourth fiscal quarter ended June 30, 1996 will result
in a loss for the quarter, with estimated earnings per share for
the year now being approximately $.10 per share before non-recurring
items, well below Street estimates of approximately $.88 per share.
The shortfall is attributable to the previously announced bankruptcy
and subsequent liquidation of Herman's, one of the company's major
customers, and the longer than previously expected impact to both
net sales and gross margin which is resulting from Herman's
liquidating its unsold Speedo inventory into the marketplace at deep
retail discounts of 60% and more. This discounting is taking place
throughout the U.S.
The company projected continued soft sales and gross margins for
the first and second fiscal quarters of 1997 and currently estimates
that fiscal year 1997 will not meet Street expectations of $1.25 per
share but will be more likely in the range of $.90 per share for the
year, with the shortfall coming primarily in the first half of the
year.
Authentic Fitness Corporation, headquartered in Los Angeles,
California, designs and markets swimwear, swim accessories and
fitness apparel under the Speedo(R), Speedo(R) Authentic Fitness(R),
Oscar de la Renta(R), Catalina(R), Cole of California(R), and Anne
Cole(R) brand names, skiwear, activewear, swimwear and accessories
under the White Stag(R) brand name and skiwear under the
Edelweiss(R), Mountain Goat(R) and Skiing Passport(R) brand names.
Statements contained in this release that are not statements of
historical fact are "forward-looking statements" within the meaning
of the federal securities law. Many factors that are inherently
difficult to predict and beyond the control of the Company,
including future economic conditions, changing competition, and the
level and pricing of future orders from the Company's customers (in
light of the presence of off-price liquidation merchandise or other
conditions), could cause actual results to differ up or down from
the estimates or projections discussed. Accordingly, no assurance
can be given that actual results will match such estimates or
projections.
CONTACT: Linda J. Wachner, 212-370-8204, or William S.
Finkelstein, 212-370-8287, both for Authentic Fitness; or Jeffrey
Taufield of Kekst and Company, 212-593-2655
CAROL STREAM, Ill., July 26, 1996 -- Ben Franklin Retail
Stores, Inc. (Nasdaq: BFRS), announced that today it has filed for
protection from its creditors under Chapter 11 of the U.S.
Bankruptcy Code. The filing was made in the U.S. Bankruptcy Court
in the Northern District of Illinois.
Robert A. Kendig, President and Chief Operating Officer, stated
that Ben Franklin intends to use this protection to restore historic
levels of service to its customers and feels that this will be
possible with the support of its lenders and franchisees.
Ben Franklin Insurance Agency (BFIA) and Auto Artistry,
subsidiaries of Ben Franklin Retail Stores, Inc. will continue to
operate outside of the Chapter 11 Bankruptcy Code conducting
business in the ordinary course.
Ben Franklin will work toward emerging from bankruptcy as
quickly as practicable and is working with Price Waterhouse's
Corporate Recovery Group to that end. Ben Franklin intends to
emerge from bankruptcy as a more competitive company by focusing on
its core merchandise wholesaling business.
Headquartered in Carol Stream, Illinois, Ben Franklin is a
national broadline wholesaler of variety and craft merchandise and
franchisor and operator of variety and crafts stores.
CONTACT: David A. Brainard, Senior Vice President - Chief
Financial Officer, of Ben Franklin Retail Stores, Inc., 708-462-
6345
LA CROSSE, Wis., July 26, 1996 -- LaCrosse Footwear, Inc.
(Nasdaq: BOOT) today reported that net income for the second quarter
of 1996 was $276,000 or $.04 per share compared to $106,000 or $.01
per share for the same period last year. Through the first six
months of 1996, net income increased to $573,000 or $.08 per share,
from $54,000 for the same period last year. Net sales for the
current quarter were $23.1 million compared to $20.5 million for the
second quarter of 1995 and for the first six months of 1996 are
$45.2 million compared to $40.2 million for the same period in 1995.
During May 1996, the Company acquired the Red Ball(R) brand and
associated assets for a cash purchase price of approximately $5.0
million. Since Red Ball, Inc. and its parent Norcross Footwear,
Inc. had been operating under the protection of Chapter 11 of the
Federal Bankruptcy Code since February 1996, annualized revenues for
the balance of 1996 are expected to be well below Red Ball's 1995
level.
Also during May 1996, the Company formed an equal partner joint
venture which purchased substantially all of the assets of Rainfair,
Inc. for a cash purchase price of approximately $10.5 million.
According to Patrick K. Gantert, LaCrosse Footwear, Inc.
President and CEO, "the Red Ball purchase and the Rainfair joint
venture are two key strategic steps for the Company. The Red Ball
brand will facilitate the expansion of our protective footwear
distribution through mass merchant channels, while the Rainfair,
Inc. line of rainwear and protective clothing complements our
footwear products in all markets. A new line of LaCrosse brand farm
and work rainwear was introduced last month and preliminary sales
results have been very positive."
Net sales of LaCrosse(R) products for the quarter increased $.7
million to $16.2 million compared to $15.5 million in 1995,
resulting from initial shipments of the new LaCrosse leather work
boot line, introduced in February 1996, and increased shipments
under a current government contract. LaCrosse product orders for
the first half of 1996 were up about 3% over the 1995 first half
including the effects of an inventory reduction program at a large
private label customer and the current restructuring at Gander
Mountain. Excluding the impact of these large national accounts,
LaCrosse product orders are up 8% for 1996.
Danner(R) net sales for the quarter were down $.2 million from
last year, however, orders for the new Danner Dri-Foot series are
ahead of plan and will positively impact fall shipments.
The new Rainfair, Inc. joint venture began operations as of May
1, 1996 and contributed $2.1 million of sales for the quarter. Red
Ball sales will commence during the third quarter of 1996.
Gross profit for the second quarter of 1996 increased to 26.2%
of net sales compared to 24.7% in the second quarter of 1995. More
favorable pricing on key raw materials and productivity increases
and cost reduction at the LaCrosse factory were the primary reasons
for the increase. Rainfair gross margins for the quarter were 20%,
the result of lower factory utilization during the normally slow
summer season.
Operating expenses in the second quarter of 1996 were
$5,381,000, or 23.3% of net sales, compared to $4,666,000, or 22.8%
of net sales, for the second quarter of 1995. Planned increases for
marketing/advertising support for LaCrosse products and the addition
of the Rainfair, Inc. business were the main reasons for the
increase in spending.
Interest expense increased $50,000 during the second quarter of
1996 compared to the second quarter of 1995 reflecting the increased
long-term debt of $12.5 million added during the quarter to finance
the Rainfair and Red Ball purchases.
Accounts receivable and inventories are up $4.2 million and $5.9
million, respectively, in the second quarter of 1996 compared to the
second quarter of 1995 as a result of the Rainfair and Red Ball
purchases. Comparable LaCrosse/Danner inventories at June 30, 1996
were more than $3.5 million below the July 1, 1995 level.
LaCrosse Footwear designs, manufactures and markets premium
quality rubber, leather and vinyl footwear and rainwear and
protective clothing for the sporting and outdoor, farm and general
utility, occupational and children's markets under the LaCrosse(R),
Danner(R), Red Ball(R) and Rainfair(R) brands and for private label
customers.
LACROSSE FOOTWEAR, INC.
SELECTED FINANCIAL DATA
(UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
SECOND QUARTER ENDED SIX MONTHS ENDED
6/29/96 7/1/95 6/29/96 7/1/95
(Income Statement)
Net Sales $23,054 $20,486 $45,185 $40,162
Gross Profit 6,032 5,055 11,839 10,147
Operating Expenses 5,381 4,666 10,634 9,724
Income from Operations 651 389 1,205 423
Interest Expense (408) (358) (587) (595)
Other income (Expense) 92 142 204 260
Income before Income Taxes 335 173 822 88
Income Taxes (132) (67) (322) (34)
Minority Interest 73 -- 73 --
Net Income (Loss) 276 106 573 54
Net income (Loss) Applicable
to Common Shareholders $267 $77 $534 ($5)
Net Income Per Average Common
Share and Common Share
Equivalents $0.04 $0.01 $0.08 $0.00
Weighted Average Common and
Common Equivalent Shares
Outstanding 6,681 6,668 6,680 6,691
(Balance Sheet Data)
Accounts Receivable -
Net $21,433 $17,220
Inventories - Net $42,043 $36,175
Short-term Borrowings $14,039 $13,664
Long Term Debt $17,032 $6,690