TCR_Public/960829.MBX BANKRUPTCY CREDITORS' SERVICE, INC.


Bankruptcy and Troubled Company News


August 29, 1996



  1. Comprehensive Care Corporation Reports Fourth Quarter and Year End Results
  2. Concurrent Computer Corp. reports fourth quarter results





Return To The InterNet Bankruptcy Library Homepage



Comprehensive Care Corporation Reports Fourth Quarter and Year End Results


        


            CORONA DEL MAR, Calif., Aug. 29, 1996  --  Comprehensive
        Care Corporation
(NYSE: CMP) (CompCare(R)) today reported a loss of
        $4.2 million, or $1.60 loss per share on 2.6 million weighted
        average shares outstanding, and revenues of $32.4 million for the
        year ended May 31, 1996.  Included in this loss is the $2.6 million
        tax benefit related to the carryback of fiscal 1995 losses.  This
        year's results are an improvement of $7.3 million, or $3.51 per
        share, compared to the loss of $11.5 million, or $5.11 loss per
        share on 2.3 million weighted average shares outstanding, and
        revenues of $29.2 million for the same period ended May 31, 1995.
        Managed care revenues increased by $10.5 million, or 192%, in fiscal
        1996, while freestanding facility revenues declined by $7.5 million,
        or 41%.  This shift in revenues is in line with the company's
        strategy to increase managed care business and to decrease
        unprofitable freestanding facility operations.
        


            For the fourth quarter ended May 31, 1996, the company reported
        a loss of $2.5 million, or $0.94 loss per share on 2.6 million
        weighted average shares outstanding, and revenues of $8.5 million.
        This compares to a loss of $3.3 million, or $1.39 loss per share on
        2.4 million weighted average shares outstanding, and revenues of
        $7.4 million for the same quarter last year. Included in the fourth
        quarter of 1996 is a write-off of $0.8 million in goodwill and $0.1
        million for restructuring charges related to the closing of the
        Cincinnati, Ohio facility, which is scheduled for closure on August
        31, 1996, and $0.2 million for the equity in loss of unconsolidated
        joint ventures.  Also included in the fourth quarter were $0.3
        million favorable settlements related to prior year third party
        liabilities and $0.3 million gain on sale of one of the company's
        facilities.
        


            The independent auditor's report on the company's consolidated
        financial statements for the year ended May 31, 1996 by Ernst &
        Young LLP continues the explanatory paragraph included in that
        firm's report on the company's consolidated financial statements for
        fiscal 1995 related to uncertainties that give rise to substantial
        doubt about the company's ability to continue as a going concern.
        Uncertainties cited include the company's financial position,
        history of losses and default of the company's 7 1/2% convertible
        subordinated debentures.  CompCare is seeking to remedy the default
        on the $9.5 million in bonds through an exchange offer that is now
        pending with the SEC.
        


            Chriss W. Street, chairman and president of CompCare stated, "We
        have made significant progress in fiscal year 1996 in a number of
        areas.  These accomplishments include:
        


            The company is positioned to become a dominant player in the
        "carve-out" behavioral managed care business and to rapidly achieve
        profitability in the coming fiscal year.  It is our goal to become
        cash flow positive from operations.  We continue to make headway in
        reaching this goal.
        


            Our recent contract announcements with Harris Methodist and Blue
        Cross Blue Shield of Texas have proven our ability to land
        significant contracts. Our managed care business has dramatically
        increased with the number of covered lives growing to approximately
        1.1 million as of July 31, 1996," Street concluded.
        


            CompCare provides care and care coordination on a contractual or
        at-risk ("managed care") basis of chronic and catastrophic diseases
        to HMOs, hospitals, the government and corporations throughout the
        United States and its protectorates through its Disease State
        Management(SM) products.
        



                   COMPREHENSIVE CARE CORPORATION AND SUBSIDIARIES
                         Consolidated Statement of Operations
                   (Amounts in thousands, except per share amounts)
                                       Audited
        
                                                Three Months Ended Twelve
        Months Ended
        
                                                  May 31,               May 31,
                                             1996      1995      1996      1995
         Revenues
         Operating revenues                $8,524    $7,423   $32,488   $29,282
        
         Costs and expenses:
         Direct healthcare operating expenses7,715    8,231    29,208    31,497
         General and administrative expenses1,807     1,349     7,632     4,331
         Provision for doubtful accounts       14         6       934     1,423
         Depreciation and amortization      1,116       449     2,099     1,797
         Write-down of assets                   0       741         0       741
         Restructuring expenses                94         0        94         0
         Equity in loss of
          unconsolidated affiliates           191         0       191         0
        
         Total Costs and expenses          10,937    10,776    40,158    39,789
        
         Loss from operations             (2,413)   (3,353)   (7,670)  (10,507)
        
         Other income/(expenses):
         Gain on sale of assets               269       817     1,336       836
         Loss on sale of assets              (38)     (354)      (82)     (354)
         Interest income                       46         7       210        38
         Interest expense                   (321)     (426)   (1,374)   (1,366)
         Non-operating gain                     0         0       860         0
        
         Net Loss before income taxes     (2,457)   (3,309)   (6,720)  (11,353)
        
         Provision (benefit) for income taxes  28         4   (2,478)       180
        
         Net Loss                        ($2,485)  ($3,313)  ($4,242) ($11,533)
        
         Net  loss per common share and
         common equivalent share          ($0.94)   ($1.39)   ($1.60)   ($5.11)
        
         Weighted average common and common
         equivalent shares outstanding      2,654     2,390     2,654     2,257
        
                      COMPREHENSIVE CARE CORPORATION AND SUBSIDIARIES
                              Fiscal Year Ended May 31, 1996
                                 Supplemental Information
        
                                                                      May 31,
                                                            1996           1995
        
         Facility inventory
         Psychiatric hospitals/Chemical
          dependency treatment facilities                      2              4
         Adult CareUnits(R)                                    8             11
         Adolescent CareUnits                                 --             --
         Adult CarePsych Centers(R)                            2              2
         Partial Hospitalization                               6              3
         Eating disorder units                                 1              1
                                                              19             21
        
         Comprehensive Behavioral Covered Lives        1,037,413        442,946
        
                                                    Fourth Quarter   Fiscal
        Year Ended
        
                                                              May 31
                                             1996      1995      1996      1995
         Operations
         Patient days
         Freestanding facilities            1,803     4,273     9,361    27,774
         Comprehensive Care Integration
           contracts                        2,972     6,230    15,875    29,082
        
         Freestanding facilities
         Occupancy rate                       29%       18%       19%       25%
         Admissions                           331       646     1,632     3,329
         Average length of stay (days)          5         7         6         8
        
         Comprehensive Care Integration contracts
         Average occupied beds per contract     5         5         4         7
         Admissions                           492       809     2,304     3,634
         Average length of stay (days)          6         8         7         8
        
         Total beds available at end of period
         Freestanding facilities               58       237        58       237
         Comprehensive Care Integration
           contracts                          105       157       105       157


CONTACT:  Chriss W. Street of Comprehensive Care, 800-678-2273; or Linda Staley of Coffin-KCSA, 818-789-0100


Concurrent Computer Corp. reports fourth quarter results for period ended June 30, 1996


        


            FORT LAUDERDALE, Fla.  --  Aug. 29, 1996  --  
        Concurrent Computer Corp. (NASDAQ:CCUR) Thursday reported revenues
        of $18.7 million for the fourth quarter ended June 30, 1996,
        compared to $26.2 million for the quarter ended March 31, 1996 and
        $30.5 million for the quarter ended June 30, 1995.  
        


            Revenue for fiscal year 1996 was $95.8 million compared to $140
        million for fiscal year 1995.  Loss for the quarter ended June 30,
        1996 was $34.1 million and $39.7 million for the year.  The loss
        included a $29 million charge for restructuring and the write down
        of inventory and other assets in conjunction with the purchase of
        the real-time business of Harris Computer Systems Corp. which was
        completed on June 27, 1996.  
        


            "The fourth quarter results were not unexpected.  The quarter
        was a very challenging time for both Concurrent Computer Corporation
        and Harris Computer Systems Corporation due to the prolonged nature
        of the transaction.  Concurrent is looking forward to the future and
        believes that with our new products and markets and an integrated
        employee base we are well positioned to meet our goals, and based on
        shipments and backlog as of this date we are enthusiastic about the
        future of the business," said E. Courtney Siegel, president and
        chief executive officer of Concurrent.  
        


            "The Company is currently working on merging the two
        organizations and expects the integration to be largely completed by
        September 30, 1996.  The Company rolled out its new product concept,
        which combines the most advanced features of both company s
        products, to our sales force during a worldwide sales meeting held
        in Fort Lauderdale in mid-July.  The integration of Sales, Marketing
        and Development has been completed and has been well received by our
        customers and employees," Siegel explained.  
        


            "The telecommunications market and interactive real-time (which
        includes video-on-demand and wagering and gaming) market provides us
        with real opportunities for growth.  These markets, as well as our
        solid core business of real-time, offer potential benefits for our
        customers and shareholders," Siegel concluded.  
        


            Concurrent Computer Corp., headquartered in Fort Lauderdale, is
        the leading supplier of high-performance real-time computer systems,
        software and solutions to commercial and government markets.  The
        company focuses on five distinct business areas:  simulation; data
        acquisition; instrumentation & process control; telecommunications;
        and interactive real-time which includes video-on-demand and
        wagering & gaming.  Operating in 22 countries worldwide, they
        provide sales and support from offices throughout North America,
        Europe, and Asia, as well as through authorized distributors,
        resellers and representatives.


        
        CONSOLIDATED STATEMENTS OF OPERATIONS - CONCURRENT COMPUTER CORP.
        (Dollars in thousands except earnings per share)
        
                              Three Months Ended      Twelve Months Ended
                              June 30,   June 30,     June 30,   June 30,
                               1996       1995         1996       1995
        
        Net Sales
         Computer systems        $ 6,734    $14,202      $42,430    $72,074
         Service and other        11,958     16,304       53,370     68,070
           Total sales            18,692     30,506       95,800    140,144
        
        Cost of sales
         Computer systems          7,358      8,219       27,487     38,639
         Service and other         8,751      9,067       33,048     40,838
           Total cost of sales    16,109     17,286       60,535     79,477
        
        Gross margin               2,583     13,220       35,265     60,667
        
        Other operating expense
         Research and development  3,974      4,009       13,837     19,464
         Selling, general and
          administrative           7,881      7,972       29,818     36,921
         Provision for
          restructuring           23,180        500       24,480      3,200
         Sales and use tax credit      0          0            0     (1,000)
           Total other
        operating expenses    35,035     12,481       68,135     58,585
        
        Operating income (loss)  (32,452)       739      (32,870)     2,082
        
        Interest expense            (465)      (529)      (2,316)    (2,638)
        Interest income               33        101          226        513
        Other non-recurring
         charge                        0          0       (1,700)    (1,000)
        Other income
         (expense) - net          (1,022)       254       (1,502)       737
           Total income/
        (expense)             (1,454)      (174)      (5,292)    (2,388)
        
        Income (loss) before
         provision for
         income taxes            (33,906)       565      (38,162)      (306)
        
        Provision for
         income taxes                150        300        1,550      1,700
        
        Net income (loss)      ($34,056)       $265     ($39,712)   ($2,006)
        
        Net income (loss)
         per share               ($1.10)      $0.01       ($1.30)    ($0.07)
        

        CONTACT:  Concurrent Computer Corp., Fort Lauderdale  --  Corporate Communications  --  Beth Alonzo, 305/973-5100