CalComp Reports Financial Results for Third Quarter, Nine-Months
ANAHEIM, Calif., Nov. 5, 1996 - CalComp Technology, Inc. (Nasdaq: CLCP), formerly Summagraphics
Corporation (Nasdaq: SUGR), today announced financial results for the third quarter and nine months ended
September 29, 1996, representing the Company's initial reporting period since the closing of its reorganization
with CalComp Inc.
On July 23, 1996, Summagraphics Corporation (Summagraphics) and CalComp Inc. (CalComp), a wholly-owned
subsidiary of Lockheed Martin Corporation, entered into a plan of reorganization for the exchange of CalComp
stock for Summagraphics stock and the creation of a new company named CalComp Technology, Inc. The newly
formed company adopted a fiscal year ending on the last Sunday of December. For accounting purposes,
CalComp was treated as the acquiring company. Therefore the financial statements for the prior year periods are
those of CalComp and the financial statements for the current year reflect CalComp's acquisition of
Summagraphics as of July 23, 1996. Selective pro forma data reflecting the transaction as if it were consummated
at the beginning of each nine month period presented follows the historical information.
For the third quarter, net sales were $65.6 million as compared to $65.3 million a year earlier. CalComp
Technology, Inc. sustained a net loss of $10.7 million, equal to $.24 per share, for the period, compared with a
net loss of $2.9 million, or $.07 per share, for the same quarter of the previous year.
Net sales for the nine months ended September 29, 1996 declined to $168.4 million from $206.6 million a year
ago. The net loss for the year-to-date period amounted to $32.7 million, equal to $.78 per share, compared with a
net loss of $11.8 million or $.29 per share, for the corresponding period last year.
Gary R. Long, president and chief executive officer, said, "As anticipated, our third quarter results were
negatively impacted by continued competitive pressures on output products, lower service and supplies revenues,
and operating expenses not yet eliminated in connection with the integration of Summagraphics and CalComp
operations. Additionally, delays were experienced in the introduction of new products. During the final quarter of
fiscal 1996, we plan to substantially complete the integration of Summagraphics into our organization, continue
our investment in new products and technologies, introduce one new inkjet product and a new small format image
setter, and continue to reduce operating costs all of which should have a positive impact on our performance."
This press release contains certain forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such statements as a
result of various factors, including those discussed in the company's Form 10- K on file with the SEC.
CalComp Technology, Inc. is a leading supplier of computer graphics peripheral products, including large format
LED, direct and dry imaging, vector and ink jet plotters and printers, sign cutters, digitizers and large format
scanners. The company's products are marketed throughout the world to the CAD/CAM and graphic arts markets.
CalComp Technology, Inc. provides full service product support and technical assistance, sells supplies and
provides after-warranty service.
CalComp Technology, Inc.
Condensed Consolidated Statement of Operations (Unaudited)
Three Months Ended Nine Months Ended
Sept. 29, Sept. 24, Sept. 29, Sept. 24,
1996 1995 1996 1995
(Dollars in Thousands, Except Share Data)
Net Sales $65,564 $65,289 $168,370 $206,565
Cost of Sales 49,759 46,782 130,427 147,246
Gross Profit 15,805 18,507 37,943 59,319
Operating Expenses 26,769 21,473 70,998 70,577
Loss from Operations (10,964) (2,966) (33,055) (11,258)
Other (Expense)
Income, Net 443 76 1,185 1,426
Loss Before Taxes (10,521) (2,890) 0 (9,832)
Provision (Benefit)
for Taxes 213 (33) 831 1,974
Net Loss ($10,734) ($2,857) ($32,701) ($11,806)
Net Loss Per
Common Share ($0.24) ($0.07) ($0.78) ($0.29)
Weighted Average Shares
Outstanding 44,119,613 40,742,957 41,868,509 40,742,957
PROFORMA LOSS SUMMARY
Net Sales $198,025 $261,566
Net Loss ($49,179) ($25,874)
Loss Per Share ($1.08) ($0.57)
Weighted Average
Shares Outstanding 45,398,650 45,398,650
Condensed Consolidated Balance Sheet (Unaudited)
Sept. 29, Dec. 31,
1996 1995
Assets (Dollars in thousands)
Cash $14,787 14,574
Accounts Receivable, net 59,779 58,612
Inventories 55,323 40,308
Other Current Assets 3,868 3,504
Total Current Assets 133,757 116,998
Plant and Equipment 53,261 51,060
Goodwill 83,491 50,427
Other Assets 16,918 13,079
Total Assets $287,427 $231,564
Liabilities and Stockholders' Equity
Short-Term Debt $19,373 $ ---
Accounts Payable 21,034 17,592
Deferred revenue 10,565 10,122
Other Current Liabilities 53,810 28,387
Total Current Liabilities 104,782 56,101
Other Long-Term Liabilities 9,491 8,720
Stockholders' Equity 173,154 166,743
Total Liabilities and
Stockholders' Equity $287,427 $231,564
SOURCE CalComp Technology, Inc./CONTACT: Gary R. Long, President and Chief Executive Officer, or John
J. Millerick, Senior Vice President and Chief Financial Officer of CalComp Technology, Inc., 714-821-2000; or
Roger S. Pondel or Michael Pollock of Pondel Parsons & Wilkinson, 310-207-9300/ (
Conductus Reports Third-Quarter Results and Product Milestones
SUNNYVALE, Calif., Nov. 5, 1996 - Conductus, Inc. (Nasdaq: CDTS) reported today that revenues for the third
quarter ended September 27, 1996 were $3,273,000, an increase of 9% over the $3,012,000 reported for the
same quarter in 1995. The net loss in the third quarter of 1996 was $1,244,000, or $0.18 per share, compared
with a net loss of $864,000, or $0.15 per share, in the third quarter of 1995.
Product revenues in the third quarter of 1996 increased by 33% over those reported in the second quarter of 1996
but decreased by 4% from the third quarter of 1995. The increased commercial revenues in 1996 came primarily
from shipments of magnetic sensing systems and related products. The decrease from the same quarter in 1995 is
due to changes in product mix reflecting several large system sales in the previous year's quarter.
Government contract revenues in the third quarter of 1996 increased by 3% over the previous quarter and by 13%
over the third quarter of 1995. The recent onset of several new programs contributed to the growth in contract
revenues.
Charles Shalvoy, president and CEO commented: "We continue to be pleased with our progress in achieving key
milestones leading to product commercialization in the wireless and healthcare markets. Our commercialization
efforts in wireless have intensified with the recent deployment of beta units of our ClearSite cellular filter
subsystem in Cellcom's Wisconsin network. At the same time, our work with Lucent Technologies (NYSE: LU)
and with several leading operating companies on developing filter subsystems for the PCS market continues to
show good progress. We plan to deliver a transceiver system for testing at Lucent during the fourth quarter."
Shalvoy added: "Last week at the Wireless World Expo, we unveiled our new system architecture for wireless
products. This split-architecture approach gives our customers greater flexibility for installation of our equipment
in equipment room and tower-top installations. In addition, the adoption of this common architecture for cellular
and PCS systems will lower our development costs and shorten the time-to-market of our products."
Shalvoy also noted that, "We continue to move forward in commercializing superconducting technology for the
NMR industry as well, shipping the first probe subsystem to an end user customer and entering into a sales
distribution agreement with Nalorac Corporation to expand the marketing of probes to an additional customer
base. In summary, the past quarter has seen good revenue growth - to record levels - and accelerated efforts to
bring wireless and healthcare products to the marketplace."
This news release, other than the historical financial information consists of forward-looking statements that
involve risks and uncertainties including quarterly fluctuations in results, the timely availability of new products,
the impact of competitive products and pricing, and the other risks detailed from time to time in the company's
SEC filings and reports, including the prospectus dated June 26, 1996 relating to the sale of 1,000,000 shares of
common stock by the company and the report on Form 10-Q for the quarter ended September 27,1996. Actual
results way vary materially.
Conductus, Inc., founded in 1987 and based in Sunnyvale, California, develops, manufactures and markets
electronic components and systems based on superconductors for applications in telecommunications, healthcare
and instrumentation. The unique properties of superconductors offer significant performance advantages over
products based on conventional copper electronic components. For many applications, the advantages can
provide improved price/performance at the system level because of enhanced sensitivity and efficiency as well
as reduced size and weight.
Bell Labs is the research and development arm of Lucent Technologies the new systems and technology company
formed by AT&T as part of AT&T's previously announced restructuring.
Cellcom, based in Green Bay, Wisconsin, operates approximately 100 base stations providing cellular service to
several rural and urban areas in Wisconsin and Iowa. The company was founded in 1987.
Nalorac Corporation, a privately held California corporation with headquarters in Martinez, California, has
served the scientific instrumentation market since 1975. Nalorac develops, manufactures and markets NMR
probes, NMR imaging instrumentation, NMR-grade superconductive magnets, and high-performance cryogenic
dewar systems. In addition to the home office, the company maintains an East Cost sales office and a growing
sales distribution network in Europe, Japan, Australia and New Zealand.
Press announcements and other information about Conductus are available on the Internet via the World Wide
Web using a tool such as Netscape or NCSA Mosaic. Type http://www.best.com/7/8cdtsat the prompt.
CONDUCTUS, INC.
Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
Revenues:
Contract $2,469 $2,176 $7,089 $5,675
Product 804 836 1,806 1,753
Total revenue 3,273 3,012 8,895 7,428
Operating expenses:
Cost of products 552 487 1,216 942
Research and development 3,011 2,438 8,724 7,351
Selling, general and
administrative 1,016 964 2,974 2,749
Total operating expenses 4,579 3,889 12,915 11,042
Loss from operations (1,306) (877) (4,019)
(3,614)
Interest, net and other 62 13 49 17
Net loss $(1,244) $(864) $(3,970)
$(3,597)
Net loss per common share $(0.18) $(0.15) $(0.65)
$(0.65)
Shares used in computing
per share amounts 6,782 5,609 6,084 5,506
SOURCE Conductus Inc./CONTACT: William J. Tamblyn, Chief Financial Officer of Conductus Inc.,
408-523-9950/
Somatix Reports Fiscal 1997 First Quarter Results
ALAMEDA, Calif., Nov. 5. 1996 - Somatix Therapy Corporation (Nasdaq: SOMA) today reported results for the
quarter ended September 30, 1996. The company reported a loss of $6,178,000 or $0.25 per share for the
quarter, compared with a loss of $4,576,000 or $0.21 per share for the same period last year. Results for the first
quarter of fiscal 1997 included one time restructuring costs of $1,060,000.
The company ended the quarter with approximately $14.3 million in cash, cash equivalents, and marketable
securities. In addition to this, subject to certain limitations, the company has the right to sell up to $10 million
worth of additional preferred stock over the next three years under the terms of a private placement completed
September 25, 1996. This financing has already provided $5 million in this quarter.
The company had earlier announced it will delay the start of a Phase III clinical trial of its GVAX(TM) cancer
vaccine in stage III melanoma patients pending execution of a corporate partnering agreement. As a result, the
company decreased its work force involved in the Phase III trial which significantly reduced its on-going
annualized burn rate.
"While the reduction in our clinical development work force was a difficult decision, we felt that it was fiscally
prudent to significantly reduce the Company's burn rate while we continue discussions with potential corporate
partners regarding the development of our autologous GVAX cancer vaccine programs. We remain encouraged
by the data from ongoing Phase I/II clinical trials and by the response we have received from potential corporate
collaborators. Concurrent with our GVAX cancer vaccine clinical and business development activities, Somatix
continues to develop and apply multiple gene transfer vector systems to clinically important targets including
Parkinson's Disease and Alzheimer's Disease, as well as in hematopoietic stem cell gene therapy programs,
including our planned Phase II/III clinical trial in CGD," stated David W. Carter, Somatix's chairman, president,
and chief executive officer.
Somatix Therapy Corporation is a leader in the field of gene therapy. The company intends to research, develop,
and commercialize proprietary processes for the genetic modification of cells and their use in the treatment of
human disease. Somatix's assets include its highly efficient gene transfer technology, broad-based intellectual
property, and focused product development programs. The company's most advanced clinical development
program, the GVAX cancer vaccine, is in Phase I/II clinical trials for the treatment of metastatic renal cell
carcinoma, advanced melanoma, and prostate cancer. Somatix is also in clinical trials evaluating genetically
modified hematopoietic stem cells for both genetic and acquired diseases, and is also developing gene
therapy-based approaches for Parkinson's disease and other neurodegenerative diseases.
This release contains certain forward-looking statements that involve risks and uncertainties, such as the ultimate
application of the Company's patents and future actions of the United States Patent and Trademark Office
("USPTO"). Actual results may differ substantially from the Company's expectations and may be influenced by a
variety of factors including decisions by third parties such as potential corporate partners or the U.S. Food and
Drug Administration and the other factors listed from time to time by the Company in its annual and periodic
reports to the Securities and Exchange Commission including the Company Report on Form 10-K for the period
ended June 30, 1996.
NOTE: GVAX cancer vaccine is a trademark of Somatix Therapy Corporation.
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share data)
First Quarter Ended September 30 1996 1995
Revenues $ -- $ --
Costs and Expenses
Research and Development 4,057 3,634
General and Administrative 1,366 1,160
Restructuring Cost 1,060 --
Total Costs and Expenses 6,483 4,794
Non-Operating Income, Net 305 218
Net Loss $(6,178) $(4,576)
Net Loss Per Share $(0.25) $(0.21)
Shares Used in Calculation of
Net Loss Per Share 24,377 21,816
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
ASSETS
September 30,
June 30,
1996 1996
(unaudited)
Cash, and Short- and Long-Term
Marketable Securities $14,342
$15,036
Other Current Assets 978
889
Restricted Cash 300
650
Net Equipment and Improvements 2,421
2,664
Long-Term Assets 520
131
$18,561
$19,370
LIABILITIES AND STOCKHOLDERS' EQUITY
September 30,
June 30,
1996 1996
(unaudited)
Current Liabilities $5,469 $4,867
Accrued Restructuring Costs, net of
current portion 727 834
Capital Lease Obligations, net of
current portion 1,192 1,217
Other Liabilities 136 249
Stockholders' Equity 11,037 12,203
$18,561
$19,370 SOURCE Somatix Therapy Corp.
/CONTACT: Edward Lanphier, Chief Financial Officer of Somatix Therapy Corp., 510-748-3036/
Zonic Reports Earnings & Sales Gains For Fiscal 2nd Qtr.
CINCINNATI, Nov. 5, 1996 - Zonic Corporation (OTC: ZNIC) reported a profit and increased sales for the
second quarter of its 1997 fiscal year.
For the three months ended Sept. 30, 1996, Zonic reported an operating profit of $230,954 on sales of $1,445,262
compared to an operating loss of $95,924 on sales of $1,000,906 in the comparable year ago period.
Net profit for the period was $123,542 or 4 cents per share compared to a net loss for the prior year period of
$80,334 or 3 cents per share.
For the six months ended Sept. 30, 1996, Zonic reported an operating profit of $124,024 on revenues of
$2,190,274 compared to an operating loss of $182,292 on sales of $2,253,368 in the previous year period.
A net loss of $68,448 or 2 cents per share was reported in the current period compared to net profit of
$1,461,822 or 47 cents per share in the prior year period. The prior year period included gains on the sale of an
asset and debt restructuring of $1,814,302 or 59 cents per share.
Jim Webb, president and chief executive officer, said that sales gains in the quarter were primarily in the
company's machinery monitoring products (primarily one large order to be completed in November 1996) and
also the 7000 series product line. "These products represented 70 percent of our revenues in the second quarter
compared to 32 percent in the comparable period last year."
Webb said that cost of products and services sold in the second fiscal quarter decreased to 41 percent of sales
compared to 50 percent of sales in the prior year period. For the first six months of the fiscal year, cost of
products and services sold decreased to 43 percent of sales compared to 52 percent of sales in the previous year
period.
Webb said that selling, general and administrative expense decreased by $15,000 in the second quarter and
$142,000 in the first six months of the fiscal year, compared to the prior year applicable periods.
"We're pleased with the second quarter results, but are more focused on future periods," Webb said. "Our
concentration is on determining means for increasing the new order rate and further improving productivity."
Webb said that total current liabilities increased substantially in comparison to March 31, 1996 because certain
bank loans which had previously been classified as long term debt are now classified as short term debt because
they mature in the next 12 months. He said the company continued to experience cash flow problems and was
unable to improve materially on the aging of its accounts payable and certain other accrued liabilities.
Zonic Corporation develops, manufactures and markets proprietary software and computerized test and
measurement instrumentation. Zonic systems have broad application in product testing, machine monitoring and
product design verification. Company headquarters are in the Greater Cincinnati metropolitan area.
Income Statement
(Unaudited)
Three Months Ended Sept. 30
1996 1995
Product and service revenues $1,445,262 $ 1,000,906
Operating Profit (loss) 230,954 (95,924)
Income (loss) before taxes
and extraordinary item 123,542 (80,334)
Net Income (loss) 123,542 (80,334)
Income(loss) per share $ 0.04 $ (0.03)
Weighted average
shares outstanding 3,044,136 3,094,136
Backlog of orders $ 711,000 $ 743,000
(Unaudited)
Six Months Ended Sept. 30
1996 1995
Product and service revenues $2,190,274 $ 2,253,368
Operating Profit (loss) 124,024 (182,292)
Income (loss) before taxes
and extraordinary item (68,448) 1,064,547
Net Income (loss) (68,448) 1,461,822
Income(loss) per share $ (0.02) $ 0.47
Weighted average
shares outstanding 3,044,136 3,094,136
Backlog of orders $ 711,000 $ 743,000
Balance Sheet
(Unaudited)
Sept. 30 March 31,
1996 1996
Assets:
Total Current Assets $ 1,647,293 $ 1,775,581
Property and Equipment - Net 1,208,118 1,467,185
Total Assets $ 2,855,411 $ 3,242,766
Liabilities:
Total Current Liabilities $ 7,523,798 $ 3,742,055
Long-Term Obligations -- 4,070,000
Deferred Rent 262,035 292,685
Shareholders' Deficit (4,930,422) (4,861,974)
Total Liabilities &
Shareholders' Equity $ 2,855,411 $ 3,242,766
SOURCE Zonic Corporation/CONTACT: James B. Webb, President and Chief Executive Officer, of Zonic
Corporation, 513-248-1911, or Nicholas G. Biro of Kemper Lesnik Communications, 312-755-3500/
NeoStar Retail Group in Discussions to Receive Financing
DALLAS, Nov. 5, 1996 - NeoStar Retail Group, Inc. (Nasdaq: NEOSQ), parent company of Babbage's and
Software Etc., reported that the Company is currently engaged in discussions with Leonard Riggio, a director and
stockholder of NeoStar, concerning possible financial support, such as a subordinated debtor-in- possession
("DIP") financing or a credit enhancement arrangement.
NeoStar also said that Riggio is having discussions with the Company's DIP lenders and major vendors to
determine if such a transaction is feasible. NeoStar said that until Riggio satisfactorily completes his legal
review and discussions with lenders and vendors, there can be no assurance that a financing transaction will be
consummated.
Separately, NeoStar's Chairman, Thomas G. Plaskett, reported that the Company has been required to use its cash
resources at a more rapid rate than anticipated when it commenced its Chapter 11 bankruptcy case because it has
been unable to achieve sufficient levels of trade credit on satisfactory terms.
Plaskett said that even though the consumer software retailer had obtained a $70 million DIP financing, its
suppliers have not provided trade credit at levels necessary to ensure an adequate mix of inventory in advance of
the holiday selling season. He also said that the shortfall in trade credit had resulted in an event of default under
the terms of the DIP financing, and that NeoStar is in discussions with its lenders concerning the default.
NeoStar filed a voluntary petition to reorganize under Chapter 11 of the U.S. Bankruptcy Code in Federal
Bankruptcy Court in Dallas on September 16, 1996.
NeoStar Retail Group is the nation's leading chain of consumer software specialty stores. The Company employs
over 5,000 people and operates over 650 stores in 49 states, the District of Columbia, Puerto Rico, and Canada
primarily under the names Software Etc. and Babbage's. Virtually all of the Company's stores are located in
major regional shopping malls.
"THE SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION ACT OF 1995.
This press release contains forward-looking statements that involve risks and uncertainties, including but not
limited to, projections of future operating results, the financial condition of the Company, bankruptcy court
approval of those actions requiring such approval, and other risks detailed from time to time in the Company's
Securities and Exchange Commissions filings.
SOURCE NeoStar Retail Group, Inc. /CONTACT: Paul R. Streiber of NeoStar Retail Group, Inc.,
817-424-2186/