NeoStar Retail Group Auction Hearing Set Bankruptcy Court to Consider Bids on
Monday, Nov. 25, 1996
DALLAS, TX - Nov. 25, 1996 - NeoStar Retail Group, Inc.(Nasdaq: NEOSQ), parent
company of Babbage's and Software Etc., reported that a hearing is scheduled to be
held on Monday, Nov. 25, 1996, in Federal Bankruptcy Court in Dallas to consider
bids to purchase various assets of NeoStar as part of the auction process which
recently received Court approval.
NeoStar filed a voluntary petition to reorganize under Chapter 11 of the U.S.
Bankruptcy Code in Federal Bankruptcy Court in Dallas on Sept. 16, 1996. The
Company previously announced that it had decided to auction its assets due to the
absence of viable financing alternatives.
NeoStar Retail Group operates more than 650 stores and employs more than 5,000
people. The stores, located in 49 states, the District of Columbia, Puerto Rico and
Canada, operate 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 bankruptcy court
approval of those actions requiring such approval, and other risks detailed from time
to time in the Company's Securities and Exchange Commission filings.
SOURCE Neostar Retail Group, Inc. /CONTACT: Paul R. Streiber of NeoStar Retail
Group, Inc., 817-424-2186/
Quarterdeck Announces Fourth Quarter and Year End Results
MARINA DEL REY, Calif., Nov. 25, 1996 - Quarterdeck Corporation (Nasdaq:
QDEK) today reported a loss of $75 million for the fiscal year ended September 30,
1996. As previously announced, the loss was primarily a result of charges associated
with recent acquisitions and restructuring, lower demand for memory management
products, additional return reserves and the delay in the development of certain
Internet markets. Gross revenues for the year were $165 million. The Company
believes its current strategic efforts will return the Company to profitability.
Financial summary ($000)
Three months ended
Twelve months ended
September 30,
September 30,
1996 1995
1996 1995
Gross Revenues $32,067 $34,237
$164,988 $126,742 Net Revenues
19,741 31,304 133,100 117,606 Net Income
(56,223) 277 (76,375)
11,252
Commenting on the results, King R. Lee, member of the Board of Directors and Office
of the President, said, "During the September quarter, we took important steps in our
restructuring efforts aimed at implementing our new strategic plan. Additionally, we
required higher than anticipated return reserves which contributed to the negative
impact on our bottom line. However, based upon the review and analysis of our
market opportunities, we are confident that following our restructuring we will see a
return to profitability."
Outlining details of the loss, Frank R. Greico Chief Financial Officer said, "The loss
for the quarter includes approximately $15 million in non-cash write-offs of
in-process R&D relating to acquisitions, $13 million of restructuring charges and $8.4
million of additional return reserves."
Strategic Direction
Quarterdeck's restructuring positions the Company to re-establish itself as a leading
provider of software products with solid revenue and earnings growth. The Company
plans to utilize its leading technology to build on its core product franchises
developing smart tools that enhance computing on the Internet, intranet and desktop
PC. These franchises include automated performance enhancement, automated
application and system conflict resolution, disk file and space management,
communication and Internet search.
Technology Strategy
At the core of the Company's desktop and Internet technology strength is its knowledge
and understanding of the interaction among applications, hardware and the operating
system. This competence is critical to the development of new products that
automatically make the user's computing experience faster, easier, and more trouble-
free through the utilization of intelligent agents. As the Internet comes to the desktop in
the next releases of Microsoft's operating systems and Netscape's further integration
of the browser into the operating system, Quarterdeck is in a good position to take
advantage of the many opportunities that this will generate by having broad strength in
both areas. The Company intends to leverage and integrate these technologies across
its product line through componentized software development utilizing Java and
ActiveX. Componentization will also shorten the product development cycle through
the reuse of previously developed components.
Product Strategy
Combining its strong product franchise with its global brand name, Quarterdeck plans
to further develop and grow its market share in the following areas:
.. Performance Enhancement (QEMM, MagnaRam 97, Speedy Rom) .. Disk, File and
Space Management (CleanSweep, Remove-It, Partition-It)
.. Automated User Problem Assistance (Fix-It, WinProbe) .. Communication and
Internet Search (ProComm, Web Compass, Rapid Remote)
.. Graphics Conversion (HiJaak)
In the fourth quarter, the Company shipped new versions of MagnaRAM, HiJaak,
ProComm and a recently acquired utility, Vertisoft Fix-It. At Fall Comdex, the
Company released Web Compass 2.0 and so far this current quarter, the Company has
released a new version of CleanSweep for Windows 95 and NT and a new hard drive
optimization utility, Partition-It. The Company is now divided into three key business
units: Utilities, Communications and Internet Solutions, and Direct Marketing. The
Company's new direct marketing unit will consolidate control over and leverage its
telemarketing and direct mail competencies. In addition, Quarterdeck is focusing on
improving operational efficiencies and continuing the review of its cost structure.
During the fourth quarter, the Company consummated a placement of $20 million of
convertible preferred stock and believes it has sufficient cash for the current business
cycle. Quarterdeck Corporation is a pioneer in the development of PC utilities and
Internet software. The Company leads the industry in bringing utilities solutions to the
Windows and Macintosh environments and offers powerful Internet and
communications software tools. Quarterdeck Corporation is headquartered at 13160
Mindanao Way, Marina Del Rey, CA 90292. Its European headquarters are in Dublin,
Ireland. Further product availability and pricing information may be obtained by
calling (310) 309-3755 and by accessing Quarterdeck's Internet website at
http://www.quarterdeck.com.
When used in the preceding discussion, the words "believes, designed to or intended
to" and similar conditional expressions are intended to identify forward-looking
statements. Such statements are subject to certain risks and uncertainties and actual
results could differ materially from those expressed in any of the forward- looking
statements. Such risks and uncertainties include, but are not limited to, conditions in
the general economy or the software industry, the timely development and market
acceptance of products and technologies, competitive factors, demand for
memory-management software products, sell-through of products in the sales
channels, successful integration of acquisitions, the ability to secure additional
sources of financing and other risks described from time to time in Quarterdeck's SEC
reports and filings.
Quarterdeck, HiJaak are registered trademarks of Quarterdeck Corporation or its
subsidiaries. MagnaRAM, CleanSweep, Vertisoft Fix-It and Partition-It are
trademarks of Quarterdeck Corporation or its subsidiaries. All other brand and
product names are trademarks or registered trademarks of their respective companies.
QUARTERDECK CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF
OPERATIONS
(Amounts in thousands, except per share
data)
Three months
ended Twelve
months ended
September
30,
September 30,
1996 1995
1996 1995
Gross Revenues $32,067 $34,237
$164,988 $126,742 Provision for returns
12,326 2,933 31,888 9,136
Net Revenues 19,741 31,304
133,100 117,606 Cost of Revenues
11,269 9,876 49,600 34,884
Gross Margin 8,472 21,428
83,500 82,722
Operating expenses:
Research and development 5,363 3,746
21,314 14,286 Sales and marketing 13,859
9,304 66,355 30,624 General and
administrative 8,824 4,924 32,128
20,704
Total operating expenses 28,046 17,974
119,797 65,614 Operating income before
one-time charges (19,574) 3,454
(36,297) 17,108
Interest income (expense),
net (1,830) 605
(67) 1,884
Income before income taxes
and one-time charge (21,404) 4,059
(36,364) 18,992
Provision for income taxes 4,754 (24)
806 331 Income before one-time
charges (26,149) 4,083
(37,170) 18,661
Acquisition, restructuring
and other one-time charges 28,659 3,806
37,789 7,409
Net income (54,808) 277
(74,959) 11,252 Income per share before
one-time charges $(0.73) $0.12
$(1.07) $0.52
Net income per share $(1.53) $0.01
$(2.15) $0.32 Shares used for per
share calculations 35,856 33,905
34,894 35,557
QUARTERDECK CORPORATION
COMPARATIVE BALANCE SHEET
September 30,
September
30,
1996
1995
Assets:
Cash & cash equivalents $25,554
$39,669 Accounts receivable, net
9,265 13,621 Inventory, net
2,151 2,281 Deferred income
taxes -- 2,178
Other current assets 5,594
4,006 Total Current Assets
42,564 61,755
Note rec. - related party - building --
469 Property, plant & equipment, net
21,252 8,335 Capitalized software, net
3,448 2,807 Other noncurrent
assets 9,517 3,333
Total assets $76,781
$76,699
Liabilities:
Current inst. - capital lease obligations $111
$255 Trade accounts payable
10,685 13,582 Loan payable to bank
8,280 -- Accrued expenses
17,935 13,880
Accrued acquisition, restructuring 10,237
3,455 Note payable to related parties
-- 1,093 Total current liabilities
47,248 32,265
Other long term liabilities 70
164
Convertible debentures 25,000
-- Obligations under capital lease
38 -- Total liabilities
72,356 32,429
Stockholders' equity:
Preferred stock 18,725
-- Common stock
37 31 Treasury stock
(560) (560) Notes rec. on
sale of stock (18) (70)
Additional paid in capital 66,096
39,877 Foreign currency translation adjustment
(468) (562) Unreal. gain on marketable
securities 379 195 Retained
earnings/(accumulated deficient) (79,766)
5,359 Total stockholders' equity
4,425 44,270 Total liabilities &
stockholders' equity $76,781 $76,699
SOURCE Quarterdeck Corp./CONTACT: Frank Greico, Chief Financial Officer of
Quarterdeck, 310-309-3700; or Fiona Ross, General Information, or Moira Conlon or
Renee Law, Analyst Contact, 310-442-0599, all of The Financial Relations Board/
Unitel Video reports fiscal 1996 fourth quarter and year-end results
NEW YORK, NY--Nov. 25, 1996-- Fiscal 1997 results-to-date reflect benefits of
restructuring Unitel Video, Inc. (ASE:UNV) today announced results for the fourth
quarter and fiscal year-ended August 31, 1996.
Revenues for the fourth quarter ended August 31, 1996 were $16,537,000 compared
to $20,640,000 reported in the fourth quarter of the prior fiscal year. During the fourth
quarter, the Company incurred a net loss of ($1,977,000), or ($0.75) per share,
compared to a net loss of ($6,238,000), or ($2.41) per share, during the fourth quarter
ended August 31, 1995. The weighted average number of common and common share
equivalents outstanding for the fourth quarter of 1996 was 2,628,000, compared with
2,593,000 in the comparable 1995 period.
For the fiscal year ended August 31, 1996, revenues were $79,287,000 compared
with $83,285,000 for the 1995 fiscal year. After giving effect to $3,246,000 of
restructuring and impairment charges, the Company reported a net loss for the fiscal
year of ($5,124,000), or ($1.96) per share as compared to a net loss, including
restructuring and impairment charges of $8,081,000, of ($6,547,000), or ($2.53) per
share, in the 1995 fiscal year. The weighted average number of common and common
share equivalents outstanding for fiscal 1996 was 2,613,000, compared with
2,582,000 in the 1995 fiscal year.
The Company also announced the sale for $1,400,000 of its Editel New York
film-to-tape transfer equipment with the acquiror assuming responsibility for all
remaining real estate leases relating to the Editel New York facility. Proceeds from
the sale were used to reduce debt. The remaining equipment from the Editel New
York business will be either sold or transferred to the Company's other facilities by
the end of the first quarter of fiscal 1997.
Commenting on the results, Barry Knepper, Chief Executive Officer, stated, "The
losses incurred in the fourth quarter and fiscal year reflect the Company's ongoing
initiatives to focus its resources on those operations which have the greatest
profitability. During the year we closed the Chicago and New York Editel facilities
and sold equipment from those facilities which were not re-deployed into other of the
Company's divisions. We relocated the Editel New York sound department to the
Company's Windsor division and successfully expanded our Editel Los Angeles
post-production and special effects facilities with equipment from Editel New York
and Editel Chicago.
"The elimination of unprofitable operations allowed the Company to commence fiscal
1997 with strong earnings prospects. Importantly, results-to-date for the first quarter
which ends November 30, suggest that the benefits of our restructuring will be
reflected in our financial results.
"Looking forward, our mobile television production division, which provides
on-location services for the nation's premiere televised entertainment and sports
events, will expand its capacity by approximately 20% in fiscal 1997 as we build two
new mobile production units, with anticipated completion dates of mid-May and late
Summer. These units, our core studio production facilities and post-production
operations serve the industry's most prominent clients.
"Finally, the Company's Windsor New Media division, which designs and produces
custom CD-ROM, CD-I, videodisc, networked multimedia presentations and "home
pages" for the "world wide web," continues to grow, both in terms of revenues and its
customer base and will soon be re-named Unitel Interactive."
Unitel Video, Inc. is a leading provider of studio and mobile production facilities, and
post-production and special effects services to virtually every major entertainment
company in the United States. The Company's studio division comprises nine
production studios in New York City which are used by leading network, cable and
syndicated television producers. The Company's mobile division, with ten units,
provides on-location services for the taping and live telecasting of sports, musical,
entertainment and cultural events throughout the United States. The Company also
provides post-production and new media services to producers of theatrical films,
television programs and corporations through its New York and Los Angeles-based
facilities.
This news announcement contains forward-looking statements which are based upon
current expectations and involve certain risks and uncertainties. Under the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995, readers are hereby
cautioned that these statements may be impacted by several factors, and, consequently,
actual results may differ materially from those expressed herein.
UNITEL VIDEO, INC.
Consolidated Statement Of Operations
(in thousands, except per share data)
(audited)
Three Months Ended Fiscal Year
Ended
August 31, August 31,
1996 1995 1996 1995
Sales $16,537 $20,640 $79,287
$83,285
Cost of sales 14,893 18,027 65,501
69,219
Gross profit 1,644 2,613 13,786
14,066
Operating expenses:
Selling, general
& administrative 2,717 2,732 11,965
11,675
Interest 931 1,218 3,686
3,649 Restructuring and
impairment charges 0 7,681 3,246
8,081
(Loss) from
operations (2,004) (9,018) (5,111)
(9,339)
Other income (loss) 64 (16) 27
(2)
(Loss) before
income taxes (1,940) (9,034) (5,084)
(9,341)
Income taxes
(benefit) 37 (2,796) 40
(2,794)
Net (loss) $(1,977) $(6,238) $(5,124)
$(6,547)
(Loss) Per
Common Share $(.75) $(2.41) $(1.96)
$(2.53)
Weighted average
of common and
common equivalent
shares outstanding 2,628 2,593 2,613
2,582
CONTACT: Unitel Video, New York Barry Knepper, Chief Executive Officer,
212/265-3600 or Jaffoni & Collins Inc., New York Joseph N. Jaffoni, 212/505-3015
jciir@aol.com