Poll's Aim is to Uncover Why Bankruptcies are Increasing:
1 Million Americans Declared Bankruptcy in 1996
Quicken Financial Network (QFN) Launches Free Debt Reduction
Planner in Conjunction with Survey
NEW YORK, NY - April 29, 1997 - Intuit's Quicken Financial
Network(TM) (www.quicken.com), and Money Talks, (www.talks.com)
an online personal investment e-zine, announced today they would
launch a first-of-its-kind online bankruptcy survey to determine
why so many Americans are falling into debt. Last year, according
to the American Bankruptcy Institute, over 1 million Americans
filed for personal bankruptcy - a 25% increase over 1995.
The online survey, which is being conducted simultaneously on
www.quicken.com and www.talks.com, will be posted from April 30th
through May 16th and will be easily found on each site's
homepage. It will address such issues as heavy credit card debt,
spending a paycheck before getting it, and borrowing money, all
of which are telltale signs of heading into bankruptcy. Based on
the answers to these questions, the respondents will be able to
determine immediately after completing the survey if they should
be concerned about their debt.
The overall survey results and a detailed analysis of the
findings will be posted on both sites on May 19th. A chat session
will also be hosted by QFN and Money Talks personal finance
experts on the Money Whiz personal finance site on AOL (keyword
MoneyWhiz) on May 20th at 11 p.m. EST. The chat session will give
visitors the opportunity to ask specific questions about the
results and allow the hosts to offer debt-busting alternatives.
Free Debt Reduction Planner In conjunction with the survey,
QFN today introduced its free Debt Reduction Planner, located at
www.quicken.com. The planner, currently available to Windows '95
and Windows NT users, assesses financial information provided by
the visitor, and creates a plan to help him or her get out of
debt faster. The visitor will have a chance to compare his or her
current financial picture against the new plan and make
adjustments. Tips are also included to help educate consumers on
the tradeoffs between saving money and paying down debt, and also
finding ways to cut back on expenses.
"We are a nation of debtors and our personal debt keeps
rising," said Nancy Dunnan, personal finance author and
columnist for Money Talks. "Credit card debt is one of the
most prevalent personal finance problems we face. It is extremely
seductive and becomes a habit that is hard to break without help
from outside sources. I believe QFN's Debt Reduction Planner is
to personal debt management what Weight Watchers is to losing
weight."
Christy Bulkeley, QFN product manager, added, "We saw the
survey as the ideal way in which to introduce our Debt Reduction
Planner. As people take the quiz, they'll be able to link
directly to the Planner, which provides a road map to help them
avoid the consumer debt morass."
Give-Aways QFN and Money Talks will be giving away Intuit
software packages and copies of Nancy Dunnan's best selling book,
"Never Call Your Broker on Monday, and 300 Other Financial
Lessons You Can't Afford Not to Know." Visitors to
www.quicken.com and www.talks.com are eligible for the give-aways
upon completing the survey. Winners will be chosen at random.
(Official give-away rules are available at PepperCom).
Money Talks, just over a year old, prides itself on its
editorial excellence. With columns updated continuously, the site
offers savvy insight and timely topics written by a seasoned
staff, some of whom were formerly with The New York Times and The
Wall Street Journal.
The Quicken Financial Network
(http://www.quicken.com)is a comprehensive personal
finance site that helps consumers on the Web save time and money
by better managing all aspects of their financial lives. QFN
contains objective information, decision- making tools and
financial marketplaces, covering investments, insurance, banking
and other financial areas.
QFN, one of the top personal finance Web sites, is developed
by Intuit, a financial software and web-based services company.
Intuit's products and services enable individuals, small
businesses and financial professionals to better manage their
financial lives and businesses.
SOURCE PepperCom /CONTACT: Karen Cleeve or Steve Cody of
PepperCom, 212-681-1333; or Debra Kelley of Intuit, 415-944-5628/
Borland Reports Fourth Quarter Fiscal
1997 Results
SCOTTS VALLEY, Calif., April 29, 1997 - Borland International,
Inc. (Nasdaq: BORL) today announced results for its fiscal fourth
quarter ending March 31, 1997. Fourth quarter revenues were $37.2
million, compared with $70.5 million for the fourth quarter of
the previous fiscal year. The fourth quarter revenues were up
$400,000 over the third quarter of fiscal 1997.
The company reported a net loss for the fourth quarter of
$42.5 million or $(1.15) per share, compared with net income of
$7.0 million or $.18 per share for the fourth quarter of fiscal
1996. Borland's financial results for the quarter include a $23.1
million charge associated with a worldwide restructuring and
reserves for other non-recurring expenses aimed at returning the
company to profitability in fiscal 1998. The restructuring
included a 30 percent reduction in the company's workforce.
Revenues for fiscal 1997 were $151.4 million compared with
revenues of $245.1 million for the prior fiscal year. The company
reported a net loss for fiscal 1997 of $108.0 million or $(2.96)
per share compared with a net income of $14.7 million or $.40 per
share for fiscal 1996. Revenues were impacted by slowing sales of
existing, mature products as customers anticipated revisions and
new products not yet shipped. In the third quarter, Borland
licensed its Paradox product line to Corel after determining that
Paradox was no longer strategic to the company's product
direction.
Additionally, the net loss for fiscal 1997 is due, in part, to
the acquisition of Open Environment. As part of the acquisition,
Borland assumed net losses of $12.2 million incurred by Open
Environment in their first and second quarters of 1996.
"The results for the fourth quarter were consistent with
our expectations," said Delbert W. Yocam, Borland's Chairman
and CEO. "We have begun to implement a business plan that is
addressing the weaknesses in Borland's operations that
contributed to the company's declining revenues and profits in
fiscal 1997."
Yocam added, "Borland is beginning to make significant
strides in its ability to execute. As indicated earlier this year
our goal is to ship a new product or major release each quarter.
Already, these revised product development schedules are
beginning to positively affect revenues. Borland's C++Builder
product, which we began shipping toward the end of the fourth
quarter, has exceeded its initial sales forecasts on all
continents."
Beginning in the fourth quarter, Borland took significant
steps toward strengthening the company's new product development
efforts, business planning, industry partnerships and executive
management team. These four areas will continue to be a key focus
in fiscal 1998.
Following are some more of the developments Borland achieved
during the fourth quarter:
New Product Releases
In the fourth quarter, the company continued to execute on its
Golden Gate strategy for delivering products that bridge the
worlds of Internet and client/server application development. In
March, Borland shipped C++Builder, which replaced Microsoft's
Visual C++ on Windows Magazine's Recommended List. In February,
the company also shipped Delphi/400 Client/Server Suite for the
IBM AS/400 hardware platform to meet the rapid client/server
development needs of the AS/400 community. Borland launched a
pre-release version of JBuilder for customer evaluation on
Borland's website in March, and completed its second beta release
in April.
Upcoming product releases include: Delphi 3, MIDAS, JBuilder,
IntraBuilder 2.0, and Entera 4.0. MIDAS, a new addition to
Borland's product line, is Borland's recently announced
Multi-Tier Distributed Application Services Suite that provides a
set of advanced middleware technologies for corporate IT
organizations. JBuilder, a visual client/server development tool
for Sun Microsystems Inc.'s Java(TM) platform, is expected to
ship in the second quarter of fiscal 1998.
Business Planning Developments
Borland is continuing to take decisive action aimed at
streamlining operations. As part of the company's new fiscal 1998
business plan, it has increased its focus on new product
development in high-growth markets relating to application
design, development, deployment and management. The company has
moved away from areas that are not strategic to its core
business. Today, Borland announced that it is forming a separate
subsidiary for its InterBase database product, and last week
announced that it has executed a strategic relationship with a
group of former Open Environment consultants who left the company
to form a separate consulting group, NetNumina Inc.
To accelerate development of corporate tools and middleware
from Open Environment, Borland last month closed Open
Environment's Boston facilities and relocated key engineers to
Scotts Valley to form an integrated development team for the
Entera product line.
New Industry Partnerships
As previously announced, Borland is placing a high priority on
partnerships with other IT leaders. In February, Borland signed
an agreement with Oracle Corporation in which Oracle will license
Borland's JBuilder and Borland C++Builder development
technologies for use in its database systems and application
development tools. In March, Borland launched a co-marketing
program with Microsoft to provide trial versions of Borland's new
IntraBuilder Client/Server development tool to the nearly 500,000
members on Microsoft's Site Builder Network. In order to leverage
the expertise of an industry-leading IBM business partner to
provide high-quality sales, marketing and support for AS/400
developers, Borland signed a VAR agreement with MIS Systems of
Nashville, Tenn. and formed the Value Added Partner/400 Program
in February.
New Executive Appointments
"Borland is assembling a strong, new management team to
bring new focus to the company and its ability to execute,"
added Yocam.
Today, Borland announced the appointment of Dr. Rick LeFaivre
as chief technology officer. LeFaivre has more than 20 years
experience in computer and software technology research and
management, and will focus on developing new, advanced
technologies and cross-platform products for the high-growth
client/server and Internet markets. (See today's related press
release for more information.)
In April, Borland announced that John Floisand joined Borland
as vice president of U.S. Sales, and will leverage his more than
25 years of experience in sales, customer service, operations and
support to help build Borland's direct support business. A key
component of Borland's sales plan will involve increasing
relationships with VARs and systems integrators in order to
extend support for corporate customers.
In the fourth quarter, Yocam appointed Hobart Birmingham as
vice president and general counsel, and promoted Zack Urlocker to
vice president of Product Management.
Preparing for Profitability in Fiscal 1998
"While we have considerable work ahead of us, we are already
seeing signs that Borland is moving in the right direction,"
added Yocam. "We are pleased with the uptick in revenues for
the fourth quarter, and with our ability to meet our scheduled
product delivery dates. With the strong initial sales of
C++Builder and Delphi 3 on the way, we have many reasons to be
optimistic. At the same time, we are in a highly competitive
market and have several more critical steps ahead of us before we
will have achieved our performance objectives for fiscal 1998. We
believe that the restructuring that took place in the fourth
quarter puts us in a good position to achieve profitability in
fiscal 1998."
As part of the company's fiscal 1998 business plan, Borland
plans to continue to build upon its products, people and
partnerships in order to grow its business and take advantage of
high-growth market opportunities. A strategic plan for the
company will be presented in July at Borland's eighth annual
conference in Nashville, Tenn.
Borland: Making Development Easier
Borland International, Inc. is a leading provider of high-
quality software products for software application developers
worldwide. Borland is distinguished for its award-winning family
of rapid application development tools and scaleable middleware
technology for desktop, client/server, Internet/intranet, and
enterprise systems. The Company's products are supported through
comprehensive corporate and independent developer programs, value
added resellers, and systems integrators. Founded in 1983,
Borland is headquartered in Scotts Valley, California. For more
information on Borland, customers can visit Borland Online at
http://www.borland.com.
NOTE: Forward-looking statements in this release, including
but not limited to, those concerning Borland's future financial
performance, product availability dates, and the potential
features of or benefits to be derived from the Company's
products, involve a number of uncertainties and risks, and actual
events or results may differ materially. Factors that could cause
actual events or results to differ materially include, among
others, the following: possible disruptive effects of
organizational or personnel changes, shifts in customer demand,
market acceptance of the Company's new or enhanced products,
delays in scheduled product availability dates, actions or
announcements by competitors, software errors, general business
conditions and market growth rates in the client/server and
Internet software markets, and other factors described in the
Company's S.E.C. reports on forms 10-K, 10-Q, 8-K, and the
Borland prospectus relating to the acquisition of Open
Environment Corporation.
BORLAND INTERNATIONAL INC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data, unaudited)
Three Months
Ended March 31,
1997 1996
Net Revenues $ 37,167 $ 70,462
Cost of revenues 6,031 9,983
Gross profit 31,136 60,479
Selling, general and administrative 37,495 38,457
Research and development 13,276 15,493
Total continuing expenses 50,771 53,950
Restructuring charges 5,976 --
Other non-recurring charges 17,100 --
Total restructuring and other
non-recurring charges 23,076 --
Total operating expenses 73,847 53,950
Operating profit (loss) (42,711) 6,529
Interest income, net and other 576 1,510
Income (loss) before income taxes (42,135) 8,039
Income tax provision 340 1,082
Net income (loss) $ (42,475) $ 6,957
Net income (loss) per common
and common equivalent share $ (1.15) $ 0.18
Weighted average number of common and
common equivalent shares outstanding 37,006 38,294
BORLAND INTERNATIONAL INC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data, unaudited)
Years Ended March 31,
1997 1996
Net Revenues $ 151,376 $ 245,087
Cost of revenues 29,450 38,157
Gross profit 121,926 206,930
Selling, general and administrative 143,289 141,744
Research and development 55,173 50,714
Total continuing expenses 198,462 192,458
Restructuring and acquisition charges 18,944 679
Other non-recurring charges 17,100 --
Total restructuring and
other non-recurring charges 36,044 679
Total operating expenses 234,506 193,137
Operating profit (loss) (112,580) 13,793
Interest income, net and other 5,137 4,221
Income (loss) before income taxes (107,443) 18,014
Income tax provision (benefit) 517 3,295
Net income (loss) $(107,960) $ 14,719
Net income (loss) per common and
common equivalent share $ (2.96) $ 0.40
Weighted average number of common and
common equivalent shares outstanding 36,512 37,167
BORLAND INTERNATIONAL INC
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)
March 31,
1997 1996
ASSETS
Current assets:
Cash and short-term investments $ 54,360 $ 107,836
Accounts receivable,
net of allowances 17,785 41,760
Inventories 1,047 1,599
Other current assets 5,837 12,789
Total current assets 79,029 163,984
Property, equipment, net of accumulated
depreciation and amortization 106,563 117,826
Other non-current assets, net 7,110 10,424
Total Assets $ 192,702 $ 292,234
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and
accrued expenses $ 52,298 $ 44,023
Income taxes and other 28,020 33,333
Total current liabilities 80,318 77,356
Long-term debt and other 22,508 14,583
Total liabilities 102,826 91,939
Stockholders' equity:
Common stock 371 365
Additional paid-in-capital 309,800 306,305
Retained deficit (A) (223,497) (110,573)
Cumulative translation adjustment 3,202 4,198
Total stockholders' equity 89,876 200,295
Total liabilities and
stockholders' equity $ 192,702 $ 292,234
(A) Prior to the acquisition, Open Environment's (OEC) fiscal
year ended December 31. Accordingly, OEC's fiscal year was
conformed to Borland's March year end for fiscal 1997. For periods
prior to 1997 the combined financial statements of Borland and OEC
include OEC's December year end financial statements with OEC's
results of operations for the quarter ended March 31, 1996 reported
as an adjustment to the combined Accumulated Deficit.
SOURCE Borland International Inc. /CONTACT: Paul Emery, Chief
Financial Officer, 408-431-1084, or Vallee Hubbard, Public
Relations, 408-431-4705, both of Borland International, Inc./
Aerospace Creditors Liquidating Trust announces
receipt of Thomson proceeds from Thomson Litigation
NEW YORK, NY --April 29, 1997--The Trustees of the Aerospace
Creditors Liquidating Trust (PCX: ARO.TT) announced today that
the Trust has received $14,669,479.94 of the proceeds paid by
Thomson-CSF S.A. ("Thomson") to
in connection with the action entitled LTV Aerospace and Defense
Co. v. Thomson-CSF S.A., Adv. Proc. No. 92-9531A (Bankr.
S.D.N.Y.) (the "Thomson Litigation").
The Trust is entitled to the first $10 million in proceeds,
plus a pro rata portion of any interest received by LTV under any
judgment or settlement, from the claims of LTV Aerospace and
Defense Company in the Thomson Litigation ("Thomson
Proceeds"). The payment of the Thomson Proceeds by Thomson
is as a result of the decision on March 24, 1997 of the United
States Court of Appeals for the Second Circuit affirming the
ruling by the United States District Court of the Southern
District of New York, which had affirmed the Bankruptcy Court's
ruling ordering Thomson to pay LTV, Vought Industries, Inc. and
Vought International, Inc. the sum of $20 million, with interest
thereon at the rate of nine percent (9%) from August 1, 1992.
The Trust was formed in 1993 when certain assets, including
the Thomson Proceeds, were transferred to the Trust pursuant to
the LTV Second Modified Joint Plan or Reorganization (the
"Joint Plan"). Certificates of beneficial interest
("CBIs") in the Trust were issued to the unsecured
creditors of LTV Aerospace and Defense Company
("Aerospace") to evidence their interests in the Trust.
LTV and 66 affiliates, including Aerospace, had filed for Chapter
11 protection in July of 1986 and the Joint Plan was confirmed by
the bankruptcy court in May 1993.
The Trustees anticipate that they will distribute, in two
installments to CBI holders, the Thomson Proceeds and any cash
remaining in the Trust's cash reserves: (i) the first
distribution is expected to occur shortly and will consist of the
bulk of the Thomson Proceeds, and (ii) the second and last
distribution to CBI holders is expected to occur after the
Trustees determine final wind- up and liquidation costs of the
Trust, distribute a final report to CBI holders, and after any
necessary Bankruptcy Court approval of final wind-up matters.
CONTACT: Aerospace Creditors Liquidating Trust, New York Linda
Hitchings, 212/317-8292
Marvel Bondholders Submit Reorganization
Plan to Bankruptcy Court
NEW YORK, NY --April 29, 1997-- The Official Committee of
Bondholders of Marvel Holdings,
Inc., Marvel (Parent) Holdings, Inc. and Marvel III Holdings,
Inc. ("Bondholders' Committee") announced today that
together with Marvel Holdings, Inc. they have submitted a joint
reorganization plan for Marvel Entertainment Group, Inc. (NYSE:
MRV) to the United States Bankruptcy Court for the District of
Delaware. Pursuant to the proposed plan, Marvel bondholders and
public shareholders will participate in a $365 million rights
offering on a pro-rata basis, the proceeds of which will be used
to recapitalize the Company and repay Marvel's unsecured
creditors in full. The plan also contemplates a transition team
headed by former Marvel executive Joseph Calamari to run the
Company.
Pursuant to the plan of reorganization, High River Limited
Partnership, an entity controlled by Carl C. Icahn, Westgate
International L.P. and United Equities Commodities Company will
guarantee the $365 million rights offering through a standby
purchase agreement. The reorganization plan is subject to
confirmation by the Delaware Bankruptcy Court. Marvel
Entertainment's exclusivity period, under which the Company was
solely permitted to file a plan for reorganization, expired
yesterday without Marvel Entertainment filing a plan.
The proceeds of the rights offering will be used to retire
Marvel's $100 million debtor-in-possession credit facility and to
repay in full unsecured creditors. The balance of the funds
raised will be used to satisfy Marvel's working capital needs and
to help restore Marvel to financial and operational health.
Pursuant to the plan, Marvel's prepetition secured bank debt
remaining after the retirement of debt pursuant to the rights
offering is to be satisfied in full through (i) the distribution
of the stock of Fleer/Skybox and Panini S.p.A. and (ii) the
issuance of a secured 10-year promissory note for the remaining
amount.
The Bondholders' Committee has selected former Marvel
executive Joseph Calamari to head-up a transition team with
respect to the management of Marvel Entertainment, if their plan
is approved by the Bankruptcy Court. Mr. Calamari has over 25
years of experience at Marvel Entertainment and has valuable ties
to the industry's creative community.
"The bondholders' reorganization plan represents the best
opportunity to bring Marvel out of bankruptcy and to return the
Company to profitability," said David S. Rosner of Kasowitz,
Benson, Torres & Friedman LLP, attorneys for the Bondholders'
Committee. "The Company is desperately in need of a cash
infusion and our plan devotes the necessary amount of the funds
raised to the Company's recapitalization. Our plan is the only
plan that should properly proceed because it provides for much
needed investment in the Company, pays creditors in full and
permits Marvel shareholders to invest to retain their stake in
the Company."
The Bondholders' Committee, together with Marvel Holdings,
Inc., which owns the majority interest in Marvel Entertainment
pledged to the bondholders, also filed the same plan of
reorganization yesterday, April 28, in the chapter 11 case of
Marvel Holdings, Inc. The Bondholders' Committee, which
represents the owners of $894 million in bonds secured against
approximately 80% of the equity in Marvel Entertainment, had
opposed the original reorganization plan proposed by Marvel
Entertainment.
The Official Committee of Bondholders of Marvel Holdings,
Inc., Marvel (Parent) Holdings, Inc. and Marvel III Holdings,
Inc. was formed on January 9, 1997 in Wilmington, Delaware. The
members of the Bondholders' Committee include High River Limited
Partnership (Chairman), Westgate International, L.P.
(Vice-Chairman), United Equities Commodities Company, Jeff
Schultz Investments, Whereco, Inc. and M3, LLC. The Bondholders'
Committee has retained Jefferies & Co. Inc. as its financial
advisors.
CONTACT: Sard Verbinnen & Co George Sard/Paul
Caminiti/Tracy Williams 212/687-8080
Marvel Equity Security Holders Committee
Reacts to Debtor's Plan Proposal
PHILADELPHIA, PA - April 29, 1997 - Adelman Lavine Gold and
Levin, P.C., counsel for the Official Committee of Equity
Security Holders of Marvel Entertainment Group, Inc., released
the following:
The Official Committee of Equity Security Holders of
(NYSE: MRV) (the "Committee") has announced its
vigorous objection to the process which led to Marvel executing a
letter of intent with Toy Biz Inc. (NYSE: TBZ) The Committee,
which was appointed to protect and advise the public stockholders
of Marvel in the bankruptcy cases, has repeatedly attempted to
consult with the Debtor regarding a plan of reorganization.
Unfortunately, the Debtor has steadfastly refused to discuss any
proposed reorganization plan with the duly appointed
representatives of its public stockholders and has strenuously
resisted providing the Committee's representatives with access to
Marvel. The Debtor's antagonistic attitude to its public
stockholders stands in stark contrast to its apparent close
cooperation with its lenders in formulating a plan.
At this time, the Committee cannot support the Debtor's
proposals and will explore all available alternatives.
SOURCE Official Committee of Equity Security Holders of Marvel
Entertainment,
Inc. /CONTACT: Gary M. Schildhorn, Esquire of Adelman Lavine
Gold and Levin, 215-568-7515, for the Official Committee of
Equity Security Holders of Marvel Entertainment Group/
Reddi Brake Supply Corp. announces
agreement on sale of assets
VENTURA, Calif.--April 29, 1997--Reddi
Brake Supply Corp. (NASDAQ NMS:REDI) Tuesday announced that
it has reached definitive agreement with Express Parts Warehouse
Inc., a privately owned company based in Raleigh, N.C., to sell
to the operating assets of Reddi Brake Supply Company Inc., the
operating subsidiary of Reddi-Brake presently in Chapter 11
bankruptcy.
A motion has been filed with the U.S. Bankruptcy Court
requesting approval of the sale and a hearing has been set for
May 21. The sale is subject to approval by the Court.
Express Parts Warehouse has agreed to pay approximately $6.2
million in cash at closing for warehouse and headquarters assets,
including inventory, accounts receivable, company owned vehicles,
fixtures and equipment, and the name "Reddi Brake."
Pursuant to the asset purchase agreement, Reddi Brake Supply
Company will sell substantially all of its assets except for two
notes with current face values of approximately $1.8 million
which will remain with the seller.
Reddi Brake Supply Company Inc., the operating subsidiary of
Reddi-Brake, went into Chapter 11 bankruptcy on March 17, 1997
and immediately suspended operations.
Prior to suspension of operations, Reddi-Brake operated 84
Reddi Brake outlets in 26 states, providing two-step distribution
of brake systems, chassis components and other undercarriage
parts to professional installers.
The agreement announced, if completed, will leave Reddi Brake
Supply Company Inc. with cash and notes totally approximately $8
million, but with no operating assets. Liabilities of Reddi Brake
Supply Company Inc. (the company in Chapter 11 bankruptcy)
consist of a total of approximately $14 million owed to a secured
lender, former employees for unpaid wages, and to unsecured
creditors.
If the sale is approved by the Court and consummated, Reddi
Brake Supply Company expects to submit a plan of reorganization
to the Court providing for the distribution of all available cash
and the notes to creditors of the company, at which time Reddi
Brake Supply Company would liquidate.
Reddi Brake (the parent company) assets consist only of the
stock of the operating company, Reddi Brake Supply Company.
Liabilities at the parent company are primarily $6.9 million of
subordinated convertible notes. If the asset sale closes, and if
the proceeds of the sale are distributed to creditors as part of
the bankruptcy proceedings, then Reddi Brake will have no
significant assets or operations.
For further information, contact Sandford T. Waddell, interim
Chief Executive Officer at 805/644-8355.
CONTACT: Sandford T. Waddell Interim chief executive officer
805/644-8355
CyberCash, Inc. Announces First
Quarter 1997 Results
RESTON, Va., April 29, 1997 - CyberCash, Inc. (Nasdaq: CYCH),
leading provider of secure Internet payment solutions, today
announced business and operating results for the first quarter
ended March 31, 1997.
CYBERCASH, INC.
Financial Summary Table
Three Months Ended
March 31,
1997 1996
Revenues $155,395 $21,619
Costs and expenses $(9,744,924) $(5,008,574)
Interest and other income, net $381,963 $372,086
Net loss $(9,207,566) $(4,614,869)
Net loss per share $(0.86) $(0.72)
Weighted average shares
outstanding 10,730,657 6,443,475
Commenting on the first quarter's results, CyberCash President
and Chief Executive Officer Bill Melton said, "We have made
significant progress this quarter toward implementing our
strategic initiatives for 1997. We established several major
alliances, rolled out planned new products, and made significant
progress in establishing an international presence. In addition,
we continued to make progress on our core business. The credit
card service grew by 66%, to over 500 active merchants, and we
signed 70 coin merchants, 30 of whom are now active. Recurring
revenues for the quarter totaled $69,453. Other revenues
consisted of $85,942 of consulting services.
In the area of strategic alliances, we expanded our already
strong relationship with Netscape and signed agreements with a
number of key technology partners, including IBM and Lotus. In
January, we launched a pilot program for the PayNow(TM) Secure
Electronic Check Service, and in March we launched the Digital
NewsStand(TM).
The Internet is borderless, and it is therefore critical to
our success to forge relationships with major multinational
financial institutions. We announced the first such relationship
in March of this year, a joint venture with Dresdner Bank, the
second largest commercial bank in Germany, and Sachsen
Landesbank, one of that country's largest consumer banks.
Continuing to expand our international presence through similar
arrangements is one of our key strategic initiatives for 1997.
In addition to leading-edge technical strength, a sound
strategic focus and experienced management, the Company
implemented significant cost controls this quarter. As a result
of these cost controls, which will continue during the year,
operating expenses were reduced 12% to $7.6 million, including a
one-time $300,000 restructuring charge, compared to the fourth
quarter of 1996," Mr. Melton said.
First Quarter 1997 Highlights
-- CyberCash introduced the PayNow Secure Electronic Check
Service, which completed the suite of three payment systems, in a
pilot program with leading bill presentment services. In
addition, the Company expanded its relationship with CheckFree's
new E-Bill bill presentment and payment service. This service is
available to more than 225 financial institutions and 1.3 million
consumers.
- CyberCash introduced the Digital NewsStand expanding the
pay-per-view concept to the Internet for high-value information
from magazines, newspapers and media services. BARRON'S Online,
Financial Times of London, Bloomberg L.P., Quote.com, American
Banker Online, Data Broadcasting Corp. and William O'Neill + Co.
are currently participating, Yahoo!, InfoSeek and Lycos are three
Internet navigation engines promoting the Digital NewsStand.
- CyberCash partnered with ESPNet SportZone, worldwide leader
in online sports coverage, to provide single-day access to its
premium content using the electronic coin service CyberCoin(TM),
marking the introduction of a subscription-based Web site making
premium content available on a single-day viewing basis.
- Netscape and CyberCash expanded their relationship to bring
the Company's three payment systems to Netscape's current and
future customers.
- Online Resources and CyberCash agreed to pilot a real-time
system for purchasing goods and services on the Internet. This
service will provide merchants with faster guaranteed payments
and lower transaction costs and will mimic an ATM (automated
teller machine) withdrawal in the physical world. Additionally,
it will permit financial institutions to brand the CyberCash
Wallet, enabling banks to retain control of their customers.
- Donaldson Lufkin & Jenrette's Pershing Division will
offer the CyberCash Wallet and the CyberCoin service to online
investors at Dreyfus Service Corporation, First Chicago NBD and
Ryan, Beck & Company. The firm's online PC Financial Network
teamed with CyberCash to offer the Wallet to its self-directed
investors under the PC Financial Network brand name.
- Dresdner Bank AG and Sachsen LB, two leading German banks,
and CyberCash announced a joint venture to offer the Credit Card
service and the CyberCoin micropayment service to the German
electronic commerce community. The banks will incorporate the
services in their own branded CyberCash Wallets. During the
quarter, First Union, the nation's sixth-largest bank holding
company, announced its branded Wallet.
- CyberCash commenced integration of the CyberCoin with
Microsoft wallet and merchant server.
- Increased the number of Credit Card merchants by 66%, to
more than 500 active merchants.
- Increased CyberCoin participation to more than 70 merchants.
CyberCash, Inc., of Reston, Virginia, is a leading provider of
safe, secure and low-cost payment systems over the Internet. The
three systems are Electronic Credit Card that uses all major
credit cards, CyberCoin micropayment service that allows cash
transactions, and PayNow Secure Electronic Check Service that
allows consumer-to-business funds transfer via checking accounts.
CyberCash works with virtually all transaction processing
institutions, and allows banks to offer secure Internet payment
systems to their customers.
This press release contains statements that are forward
looking. They are based on the Company's current expectations,
and are subject to a number of uncertainties and risks, and
actual results may differ materially. The uncertainties and risks
include the pace of growth of Internet commerce, the development
by the Company and its competitors of new products and services,
strategic decisions by major participants in the industry,
competitive pricing pressures, legal and regulatory developments,
and general economic conditions. Further information about these
and other relevant risks and uncertainties may be found in the
Company's report on Form 10-K, and its other filings with the
Securities and Exchange Commission, all of which are available
from the Commission and from the Company's worldwide web site
(www.cybercash.com) as well as other sources.
To receive CyberCash's latest news and other corporate
developments via fax at no cost, please call 1-800-PRO-INFO. Use
company code CYCH. Additional information on the Company can be
obtained at www.cybercash.com." target=_new>http://www.cybercash.com">www.cybercash.com.
CYBERCASH, INC.
Consolidated Statements of Operations
Three Months Ended
March 31,
1997 1996
Revenues $155,395 $21,619
Costs and expenses $(9,744,924) $(5,008,574)
Interest and other income, net $381,963 $372,086
Net loss $(9,207,566) $(4,614,869)
Net loss per share $(0.86) $(0.72)
Weighted average shares outstanding 10,730,657 6,443,475
CYBERCASH, INC.
Consolidated Balance Sheets
March 31, 1997 December 31, 1996
Cash and cash equivalents $26,376,147 $33,687,076
Other assets 1,602,627 1,733,341
Property and equipment, net 5,568,514 5,629,664
Total Assets $33,547,288 $41,050,081
Current liabilities $2,234,434 $2,940,595
Total stockholders' equity 31,312,854 38,109,486
Total liabilities and
stockholders' equity $33,547,288 $41,050,081
SOURCE CyberCash, Inc./CONTACT: Bill Melton, President and CEO
of CyberCash, 703-716-5204; or Marianne Stewart, General Info,
Carolynne O'Grady, investors, or Martin Gitlin, media, all of The
Financial Relations Board, 212-661-8030, for CyberCash/
Resurgence Properties Inc. Announces
Plan of Liquidation and Dissolution
GREENWICH, Conn., April 29,1 997 - Resurgence Properties Inc.,
(Nasdaq-SmallCap: RPIA) announced today that the Board of
Directors has approved a plan of complete liquidation and
dissolution of the Company (the "Plan") for submission
to its shareholders for their approval. The shareholders meeting
is exported to be held during the third quarter of 1997. The
effective date of the Plan will be upon the majority vote of the
Company's shareholders.
Among the key features of the Plan are: (1) the cessation of
all business activities, other than those in furtherance of the
Plan; (2) the sale or disposition of all of the Company's assets;
(3) the satisfaction of all outstanding liabilities; (4) the
payment of liquidating distributions to shareholders in complete
redemption of the Common Stock and; (5) the filing of Articles of
Dissolution.
In addition, the Board of Directors has agreed to extend the
management agreement with Wexford Management LLC under a reduced
fee arrangement through December 31, 1997 and to replace all of
the Management Options issued to Wexford with a compensation
package designed to provide the same benefits as the Management
Options.
Resurgence is engaged in diversified real estate activities
including the ownership, operation and management of retail,
office, industrial/warehouse and multi-family real estate located
throughout the United States, and investments in mortgage loans.
Resurgence was formed as a result of the consummation of the
Chapter 11 reorganization of Liberte Investors (f/k/a Lomas and
Nettleton Mortgage Investors) on April 7, 1994. Pursuant to the
reorganization, Liberte transferred most of its assets to
Resurgence. Resurgence is managed and administered by Wexford
Management LLC. Resurgence currently has 10,000,000 shares of
common stock outstanding.
SOURCE Resurgence Properties Inc. /CONTACT: Jay L. Maymudes of
Wexford Management LLC, 203-862-7050; or Josh Reiss of
Burson-Marsteller, 212-614-5084/