WESTBORO, Mass. -- July 22, 1996 -- Banyan Systems
Inc. (NASDAQ:BNYN), a leading provider of enterprise networking
services, today reported that net income for the second quarter
ending June 30, 1996, was $186,000, or $0.01 per share, compared
with a net loss of $3,292,000, or $0.20 per share, for the same
period in 1995.
Revenues for the second quarter of 1996 were even with 1995's
second quarter at $30.2 million.
For the first six months of 1996, Banyan reported net income of
$555,000, or $0.03 per share, compared with net income of $265,000,
or $0.01 per share, for the same period last year. Revenues for the
six months were $60.1 million, compared with $70.5 million in the
first half of 1995.
Banyan's software revenues in the second quarter of 1996 were
$25.7 million, compared with $24.3 million for the same period in
1995. Banyan's international business reported sales of $6.4
million, compared with last year's second-quarter level of $7.1
million.
David C. Mahoney, Banyan's president and chief executive
officer, stated, "Banyan's second-quarter performance reflects a
substantial improvement over last year's second quarter. The steps
that we have taken over the past year to restructure Banyan, reduce
costs and streamline our operations are allowing us to extend our
technologies into new markets while also meeting the expanding needs
of our existing end user customers. The second quarter was marked
by an increased level of business with existing customers as well as
by the addition of a number of new accounts, and the announcement of
several major partnering agreements.
Mahoney continued, "Our recent minority investment in
Software.com, a leading provider of Internet messaging server
software, underscores our commitment to develop innovative directory-
based and messaging-based solutions for the Internet and intranet
marketplaces. In addition to our capital investment, we also have
established a partnership to jointly develop intranet-based mail
solutions which will integrate and leverage the strength of our
world-class StreetTalk directory technology.
"From both a visibility and marketing perspective,
Coordinate.com, our Internet Products Division, continues to attract
strong interest from both businesses and consumers as it has firmly
established Switchboard as one of the Internet's most popular sites
for locating people and information," commented Mahoney. "In recent
months, Coordinate.com also has introduced several new BeyondMail
offerings for the Internet marketplace, such as the Personal
Internet Edition for home consumers and BeyondMail Internet Edition
for intranet-based messaging. These initiatives clearly demonstrate
the strength and applicability of Banyan's technology in the rapidly
expanding market for Internet/intranet applications. We are pleased
that the response to these products has been enthusiastic."
Mahoney added, "Since last year's second quarter, we have taken
substantial action to revitalize our core end user software
business. Organizations worldwide that are looking to build and
expand their enterprise networks continue to depend on Banyan's
enterprise solutions. In particular, we have been encouraged by the
market's response to our NT-based StreetTalk solutions, which allows
businesses to integrate Windows NT environments into their
enterprise."
Mahoney concluded, "Moving forward, we are focused on maximizing
visibility for Switchboard, and expanding its business content,
functionality and revenue potential. We also see significant
opportunities to broaden the use of BeyondMail's messaging solutions
for both consumer and business Internet e-mail applications. Our
product development strategy also calls for the continued
enhancement of our NT, VINES and other core enterprise networking
solutions."
The company noted that each of the above forward-looking
statements were subject to change based on various important
factors, including, without limitation, competitive actions in the
marketplace and buying trends by businesses. Further information on
potential factors which could affect the company's financial results
are included in the company's Form 10-K for the 1995 fiscal year,
which was filed with the SEC at the end of March 1996, and the
company's Form 10-Q for the period ended March 31, 1996, which was
filed with the SEC at the end of April.
The consolidated statements of operations and condensed balance
sheets are attached.
Banyan Systems Incorporated
Consolidated Statements in Operations
(in thousands, except per share amounts)
Three months ended Six months ended
June 30, June 30,
1996 1995 1996 1995
(Unaudited) (Unaudited)
Revenues:
Software $25,745 $24,342 $50,676
$58,021
Support and training 3,895 5,209 8,364
10,527
Hardware 561 603 1,093
1,955
Total revenues 30,201 30,154 60,133 70,503
Cost of related revenues 6,270 7,020 12,241
14,704
Gross margin 23,931 23,134 47,892
55,799
% 79% 77% 80% 79%
Operating expenses:
Sales and marketing 15,425 19,968 30,604
38,691
Product development 5,639 5,850 10,972
11,556
General & administrative 2,732 2,969 5,832
6,158
Total operating
expenses 23,796 28,787 47,408 56,405
Income (loss) from
operations 135 (5,653) 484
(606)
Other income, net 155 418 382
896
Income (loss) before
income taxes 290 (5,235) 866
290
Provision (benefit) for
income taxes 104 (1,943) 311
25
Net income (loss) $186 ($3,292) $555
$265
Net income (loss) per
common share $0.01 ($0.20) $0.03
$0.01
Weighted average number
of common and dilutive
common equivalent shares
outstanding 17,262 16,836 17,264
17,657
Condensed Consolidated Balance Sheets
(in thousands)
June 30, Dec. 31,
1996 1995
(Unaudited)
ASSETS
Cash and marketable securities $24,446 $31,263
Accounts receivable, net 28,857 24,288
Income tax receivable 233 6,042
Other current assets 7,821 10,454
Property, equipment and other assets 25,406 21,896
Deferred tax asset 10,545 12,366
Total assets $97,308 $106,309
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $23,928 $36,378
Deferred revenue 24,771 22,323
Other liabilities 3,428 3,266
Stockholders' equity 45,181 44,342
Total liabilities and stockholders'
equity $97,308 $106,309
Banyan Systems (NASDAQ:BNYN) is a pioneer and leader in enterprise
network services. These products make it easy to find, share and
manage information and resources within enterprise networks.
Founded in 1983 and headquartered in Westboro, Mass., USA, the
company markets products worldwide through authorized network
integrators, resellers and international distributors. Banyan can
be reached on the World Wide Web at http//www.banyan.com. StreetTalk
is a product of Banyan Systems Inc. and not a product of McCarthy,
Crisanti & Maffei Inc.
CONTACT: Banyan Systems Inc., Westboro
Jeffrey D. Glidden or Richard M. Spaulding 508/871-2271
GLENVIEW, Ill., July 22, 1996 - Zenith Electronics
Corporation (NYSE: ZE) today reported a second-quarter 1996 net loss
of $33.2 million or 51 cents per share, compared with a net loss of
$45.3 million or 97 cents per share, in the 1995 quarter. (Second-
quarter 1995 results included $18 million, or 39 cents per share, of
restructuring charges.)
Total second-quarter sales were $282 million in 1996 and $285
million in 1995.
The 1996 quarterly loss reflected continuing soft color TV
industry conditions, lower prices and higher advertising expenses
(resulting from distribution changes), as well as $5 million of one-
time items, primarily consulting fees. Major cost reductions from
re-engineering programs, reduced material costs and improved
efficiencies helped off- set some of the negative factors in the
quarter.
In consumer electronics, Zenith's sales increased in the
quarter, although selling prices declined by $14 million, compared
with the 1995 quarter.
Domestic industry direct-view color TV sales to dealers, which
were weaker in the quarter than in 1995, rebounded in June to a
record pace. Industry sales to dealers of giant-screen projection
television sets were up again in the quarter. Zenith's domestic
color TV market share increased during the quarter in both key
categories.
Zenith's color TV unit sales in international markets were
higher compared with the 1995 quarter, as were sales of commercial
TV products for lodging, educational and health care markets. Sales
of color picture tubes to other manufacturers declined in the
quarter.
Sales of Network Systems products - primarily set-top boxes sold
mostly to the cable television industry - declined in the quarter as
industry demand for analog set-top boxes softened. However, Zenith
and industry sales of cable modems, while still relatively small,
rose in the quarter.
New alliances, products and technologies were announced in the
second quarter:
ZENITH ELECTRONICS CORPORATION
STATEMENTS OF CONSOLIDATED OPERATIONS (UNAUDITED)
(In millions, except per share amounts)
Three months ended Six months ended
June 29, July 1, June 29, July 1,
1996 1995 1996 1995
Net sales $282.1 $284.6 $519.5 $546.7
Costs, expenses and other
cost of products sold 269.7 274.6 449.0 520.8
Selling, general and
administrative 37.0 26.7 71.8 55.7
Engineering and
research 11.7 11.6 22.9 23.4
Other operating expense
(income), net (5.8) (5.9) (9.9) (10.4)
Restructuring and other
charges -- 18.0 -- 18.0
Operating income
(loss) (30.5) (40.4) (64.3) (60.8)
Gain on asset sales,
net -- -- 0.3 --
Interest expense (3.6) (5.3) (6.9) (9.4)
Interest income 0.9 0.2 2.4 0.4
Income (loss) before
income taxes (33.2) (45.5) (68.5) (69.8)
Income taxes (credit) -- (0.2) -- (0.2)
Net income (loss) $ (33.2) $ (45.3) $ (68.5) $ (69.6)
Net income (loss)
per common share $ (0.51) $ (0.97) $ (1.06) $ (1.50)
Weighted average shares
outstanding 65.0 46.9 64.3 46.4
CONTACT: John Taylor, 847-391-8181, or Bill McNitt, investors,
847-391-7713, both of Zenith Electronic Corporation
CHICAGO, July 22, 1996 - USG
Corporation (NYSE: USG)
today reported 1996 second-quarter EBITDA of $110 million and net
sales of $642 million, both records since its 1993 restructuring.
These results compare favorably with 1995's second-quarter EBITDA of
$103 million and net sales of $615 million. Net sales for the first
six months of 1996 were $1,244 million, up 3 percent from net sales
of $1,213 million for the same period in 1995. EBITDA for the six
months was $189 million, down 10 percent from $209 million last
year.
Commenting on USG's performance, Chairman William C. Foote said,
"After the difficult winter weather of the first quarter, earnings
rebounded sharply in the second quarter driven by strong demand for
USG's gypsum wallboard and suspended ceilings products. As we enter
the third quarter, shipments of these products continue to be at
high levels. Based upon demand, we implemented in July an $8 per
thousand square foot wallboard price increase and a 3 percent price
increase on ceiling tile and suspension grid. Our outlook is
positive for the balance of 1996. The U.S. construction market
should continue to benefit from ongoing moderate economic growth and
relatively low interest rates. Conditions in Asia and Latin America
are expected to remain favorable. Finally, Europe and Canada are
starting to show some signs of gradual economic improvement.
USG made further progress in the second quarter toward its two-
prong strategy of investing for growth and increasing financial
flexibility," added Foote. "Capital spending during the first six
months was $73 million, and the corporation reduced the principal
value of its debt by $62 million."
Capital investments under way or completed to date at United
States Gypsum Company include various projects to lower
manufacturing costs, increase wallboard-paper manufacturing capacity
and increase joint compound capacity. USG's worldwide ceilings
business completed its new Auratone ceiling tile production line at
the Greenville, Miss., plant three months ahead of schedule and
started ceiling suspension grid manufacturing in Taiwan and Saudi
Arabia. It continues to work on reducing the manufacturing cost of
ceiling tile.
NORTH AMERICAN GYPSUM
USG's North American gypsum business recorded net sales of $512
million and EBITDA of $102 million, increases of 6 percent and 7
percent, respectively, over the second quarter of 1995. Record
second-quarter U.S. shipments of gypsum wallboard, joint treatment
and DUROCK cement board, recently improved activity in the
Canadian construction industry, and lower wastepaper furnish costs
were the primary reasons for these increases. Lower wastepaper
furnish prices positively affected EBITDA by about $16 million vs.
the second quarter of 1995.
U.S. Gypsum's wallboard plants ran at 93 percent of capacity in
the second quarter, and its average selling price of $106.78 per
thousand square feet was about 3 percent higher than in the first
quarter of 1996, but was 5 percent lower than in the second quarter
of 1995. The company's second-quarter shipments of gypsum wallboard
totaled 1.969 billion square feet, a record for any second quarter
and 9 percent above second-quarter 1995 shipments of 1.801 billion
square feet. The first six months shipments totaled 3.850 billion
square feet, a record for the period.
WORLDWIDE CEILINGS
USG's worldwide ceilings business recorded net sales of $154
million compared with $153 million in the second quarter of 1995,
while EBITDA of $17 million was unchanged. Worldwide ceilings'
1996 second quarter and first six months results reflect record
ceiling tile shipments attributable to the improving U.S. commercial
renovation market and strong demand from Latin America and Asia.
However, soft economic conditions in Europe continued to negatively
affect EBITDA for the second quarter and first six months of 1996.
CONSOLIDATED EARNINGS AND EARNINGS-PER-SHARE ADJUSTMENTS
Interest expense declined $5 million, or 20 percent, compared
with the second quarter of 1995, primarily reflecting a lower level
of debt in 1996. Selling and administrative expenses increased $5
million, or 8 percent, largely because of a joint initiative by
USG's worldwide ceilings and North American gypsum units to upgrade
their order entry and fulfillment computer systems as well as
increased compensation and benefits expenses and marketing program
expenditures.
Excess reorganization value, which was established in connection
with USG's financial restructuring in May 1993, is currently being
amortized over a five-year period. Another adjustment relating to
the difference between the face value and the market value of the
corporation's debt also was recorded. The amortization of these
non- cash, no-tax-impact adjustments reduced USG's second-quarter
1996 net earnings by $43 million, or $0.91 per share.
USG Corporation is a Fortune 500 company with subsidiaries that
are market leaders in their key product groups of gypsum wallboard,
joint compound and related gypsum products; ceiling tile and grid;
and building products distribution. For more information about USG
Corporation, visit the USG home page at http://www.usgcorp.com.
USG CORPORATION
(dollars in millions except per share figures)
Periods ended June 30 Three Months Six Months
1996 1995 1996 1995
Condensed Consolidated Statement of Earnings:
Net sales $642 $615 $1,244 $1,213
Cost of
products sold 482 466 953 912
Gross profit 160 149 291 301
Selling and
administrative
expenses 65 60 132 120
Amortization of excess
reorganization
value (a) 42 42 84 84
Operating profit 53 47 75 97
Interest expense 20 25 39 52
Interest income (1) (1) (1) (3)
Other
expense, net 1 -- 1 --
Taxes on income 29 26 47 53
Net earnings/
(loss) (b) 4 (3) (11) (5)
Net earnings/
(loss)
per common
share (b)(c) 0.09 (0.07) (0.23) (0.12)
Other Financial Information:
EBITDA (d) 110 103 189 209
EBITDA margin % 17.1% 16.7% 15.2% 17.2%
Depreciation
and depletion 15 14 30 28
Capital
expenditures 31 32 73 56
Cash and cash
equivalents
(As of June 30) 54 103
Principal amount
of total debt
(As of June 30) 864 1,022
Average common
shares outstanding(c) 45,506,148 45,088,163 45,466,664 45,086,916
(b) The noncash amortization of excess reorganization value and
reorganization debt discount (included in interest expense) reduced
reported net earnings by $43 million, or $0.91 per share, in the
three months ended June 30, 1996 and by $86 million, or $1.88 per
share, in the six months ended June 30, 1996. The noncash
amortizations reduced earnings for the respective 1995 periods by
$43 million, or $0.95 per share, and $86 million, or $1.92 per
share.
(c) Net earnings per common share of $0.09 in the three months
ended June 30, 1996 was calculated using diluted common shares of
47,465,887 which included common stock equivalents of 1,959,739. In
accordance with APB Opinion No. 15, net earnings per common share is
subject to the impact of dilution. Dilution is not calculated when
net losses are incurred, which, in the case of USG Corporation, have
occurred in previous quarters and may occur in future quarters as a
result of the restructuring-related amortizations described in
footnotes (a) and (b).
(d) EBITDA represents earnings before interest, taxes,
depreciation, depletion and amortization and items classified as
other expense, net. The Corporation believes EBITDA is helpful in
understanding cash flow generated from operations that is available
for taxes, debt service and capital expenditures.
USG CORPORATION
(dollars in millions)
Core Business Results:
Periods ended June 30
Net Sales
Three Months Six Months
1996 1995 1996 1995
U.S. Gypsum
Company $ 338 $325 $660 $657
L&W Supply
Corporation 212 191 400 365
CGC Inc. (gypsum) 28 27 51 52
Other
subsidiaries (a) 19 16 35 33
Eliminations (85) (76) (161) (154)
North American
Gypsum 512 483 985 953
USG Interiors, Inc. 100 95 196 190
USG International 57 61 112 117
CGC Inc. (interiors) 7 6 15 14
Eliminations (10) (9) (20) (19)
Worldwide
Ceilings 154 153 303 302
Eliminations (24) (21) (44) (42)
Total USG
Corporation 642 615 1,244 1,213
Core Business Results:
Periods ended June 30 EBITDA
Three Months Six Months
1996 1995 1996 1995
U.S. Gypsum
Company $ 84 $81 $154 $167
L&W Supply
Corporation 7 7 12 11
CGC Inc. (gypsum) 4 2 6 5
Other
subsidiaries (a) 7 5 11 10
North
American Gypsum 102 95 183 193
USG
Interiors, Inc. 14 15 26 30
USG International 2 1 (3) 3
CGC Inc.
(interiors) 1 1 2 2
Worldwide Ceilings 17 17 25 35
Corporate (9) (9) (19) (19)
Total USG
Corporation 110 103 189 209
CONTACT: USG Corporation: Matthew P. Gonring, vice president,
Corporate Communications, 312/606-4124, or Keith E. Kahl, manager,
Investor Relations Department, 312/606-4125.
BELLEVUE, Wash., July 22, 1996 - AQUA VIE ADVANCE
COMPANY, announced today that Tom Gillespie, the Founder and past
CEO of Aqua Vie Beverage Corporation, filed a proposed Plan of
Reorganization and Disclosure Statement with the Federal Bankruptcy
Court, to recommence the Company's operations, subject to Court
approval. Mr. Gillespie's proposed Plan of Reorganization was filed
18 months to the day, from the filing of an "Involuntary chapter 11
petition" against Aqua Vie Beverage Corporation that was part of an
unsuccessful hostile takeover attempt of the Company, in January
1995.
At the time of the original petition, an interim trustee was
appointed which technically eliminated the Company's ability
complete the launch of its "all natural" functional beverage line
called Hydrators(TM).
Through Aqua Vie Advance Company, Mr. Gillespie, is presently
completing an initial administrative loan of up to $750,000, which
along with his proposed Plan, appears to have the full support of
the office of the trustee.
In commenting on the announcement, Mr. Gillespie said, "with the
forces that have been working against this reorganization, it would
have been difficult to even propose a Plan, if it hadn't been for
the support of many creditors, shareholders, professionals, and
friends of the Company."
In May, 1996 the Assistant U.S. Attorney filed a motion to
convert the case to chapter 7, or to dismiss it. On June 15, 1996,
the trustee, who has managed the affairs of the Company for the past
17 months recommended, and filed a Plan of Liquidation for Aqua Vie
Beverage Corporation.
On July 17, 1996, Tom Gillespie, Founder of Aqua Vie Beverage
Corporation, filed a proposed Plan of Reorganization and Disclosure
Statement for Aqua Vie Beverage Corporation, for the benefit of
creditors and shareholders in the Company, and for the restart of
the Company's operations.
Additional information about Aqua Vie Beverage Corporation can
be found on the Internet at:
" target=_new>http://ourworld.compuserve.com/homepage/aquavie/aviea.htm">http://ourworld.compuserve.com/homepage/aquavie/aviea.htm
CONTACT: Tom Gillespie of Aqua Vie, 206-990-6411