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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
the Securites Exchange Act of 1934
Date of Report (Date of earliest event reported):
May 2, 1995
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Wang Laboratories, Inc.
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(Exact name of registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation)
1-5677 04-2192707
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(Commission File Number) (IRS Employer Identification No.)
One Industrial Avenue, Lowell, Massachusetts 01851
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (508) 459-5000
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ITEM 5. OTHER EVENTS
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On May 2, 1995 Wang Laboratories, Inc. ("Wang") announced its earnings
for the quarter ended March 31, 1995. A press release prepared by Wang on May
2, 1995 is attached hereto as Exhibit 99.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
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(c) Exhibits
Item Description
- ---- -----------
99. Press Release Announcing
Earnings for the Quarter
Ending March 31, 1995
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
WANG LABORATORIES, INC.
May 3, 1995 /s/ Albert A. Notini
Dated: ____________________________ By: ____________________________
Albert A. Notini,
Senior Vice President,
General Counsel and
Secretary
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<TABLE>
EXHIBIT INDEX
<CAPTION>
Exhibit No. Description Page No.
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<S> <C> <C>
99. Press Release Announcing
Earnings for the Quarter
Ending March 31, 1995
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WANG LABORATORIES, INC.
One Industrial Avenue
Lowell, MA 01851
Tel: 508/459-5000
F O R I M M E D I A T E R E L E A S E
Contact:
Frank Ryan (508) 967-7038
Ed Pignone (508) 967-4912
WANG REPORTS THIRD-QUARTER RESULTS
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Lowell, Mass. (May 2, 1995 ) -- Wang (NASDAQ: WANG) today
announced its third-quarter results, which were in line with
the anticipated results announced by the company on March 31,
1995.
For the quarter ended March 31, 1995, Wang reported
revenues of $253.1 million and an operating loss, before
amortization of intangible assets, of $4.0 million, which
compares to revenues of $205.0 million and operating income of
$8.5 million in the year-ago period.
The net loss for the quarter was $72.2 million, which
includes a $64.2 million charge for integration,
consolidation, and other initiatives principally related to
Wang's acquisition of certain of the businesses of Groupe
Bull. In future quarters, as the amounts are incurred, the
company expects to report approximately $10 million of
additional costs for acquisition-related relocation, systems
integration, and other related charges. The net loss for the
quarter compares to net income of $3.1 million in the year-ago
period. EBITDA (earnings before interest, taxes,
depreciation, and amortization) were $11.1 million for the
current quarter.
Because the Groupe Bull acquisition closed on January
31, 1995, third-quarter results include only two months of
results from the acquired businesses.
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Wang ended the period with cash balances of $93.0
million on March 31, 1995, and with no borrowings under its
revolving credit facility. The company noted that
approximately $110 million in cash was used during the quarter
to complete the Groupe Bull acquisition. The March 31 cash
balances do not include proceeds from Microsoft's purchase of
Wang convertible preferred stock, which is expected to be
concluded during the fourth quarter.
Joseph M. Tucci, chairman and chief executive officer,
said, "In the third quarter we completed our plan for the
integration and consolidation of the businesses we acquired
from Groupe Bull on January 31, 1995. We are moving forward
aggressively in implementing these programs, which are
expected to reduce costs and expenses by approximately $85
million on an annualized basis.
"During the third quarter, customers ordered 95
OPEN/workflow and OPEN/image systems from Wang, up from 40
systems in the year-ago quarter. Our recently announced
alliances with Kodak and Microsoft support our strategy to be
the acknowledged leader in imaging and workflow software."
For the nine months ended March 31, 1995, Wang reported
revenues of $661.4 million and operating income, before
amortization of intangible assets, of $19.3 million, which
compares to $647.7 million and $35.5 million, respectively, in
the year-ago period. The net loss for the nine months was
$64.3 million, and is not comparable to prior periods due to
the implementation of fresh-start reporting on September 30,
1993, and the inclusion, in the current period, of the costs
related to the company's Groupe Bull acquisition.
EBITDA for the nine months were $52.8 million.
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<TABLE>
WANG LABORATORIES, INC.
PRESS RELEASE
<CAPTION>
(Dollars in millions except per share data)
Quarter Ended Nine Months Ended
March 31, March 31,
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1995 1994 1995 1994
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Combined
Predecessor &
Reorganized
Reorganized Company Company.
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<S> <C> <C> <C> <C>
Revenues:
Product $ 92.3 $ 73.5 $269.9 $226.1
Service and other 160.8 131.5 391.5 421.6
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253.1 205.0 661.4 647.7
Costs and expenses 257.1 196.5 642.1 612.2
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Operating income (loss) before
amortization of intangible assets
and restructuring (4.0) 8.5 19.3 35.5
Amortization of intangible assets (a) 8.9 6.9 22.1 13.8
Restructuring (b) 64.2 -- 64.2 --
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Operating income (loss) (77.1) 1.6 (67.0) 21.7
Interest and other income - net (1.3) (3.8) (6.3) (6.4)
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Income (loss) before income taxes
and reorganization items (75.8) 5.4 (60.7) 28.1
Provision (benefit) for income taxes (3.6) 2.3 3.6 8.2
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Income (loss) before reorganization items (72.2) 3.1 (64.3) 19.9
Reorganization-related items -- -- -- 488.0 (c)
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Net income (loss) (72.2) 3.1 (64.3) 507.9
Dividends and accretion on
redeemable preferred stock (2.1) (1.9) (6.2) (2.2)
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Net income (loss) applicable to
common stockholders $(74.3) $ 1.2 $(70.5) $505.7
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Net income (loss) per share $(2.24) $ 0.04 $(2.17) $ *
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<FN>
(a) Amount relates to amortization of intangible assets acquired from Groupe Bull and assets identified in connection with
the adoption of "fresh-start" reporting.
(b) Charges principally associated with integration and consolidation initiatives related to the acquisition of certain of
the businesses of Groupe Bull.
(c) Includes $329.3 million extraordinary gain on debt discharge and $193.6 million to adjust the company's balance sheet to fair
market value recorded as a result of the confirmation of the Reorganization Plan and the adoption of "fresh-start"
reporting. These gains are reduced by $34.9 million of professional fees, restructuring initiatives, and other expenses
related to the company's reorganization under Chapter 11.
* Earnings per share information is not presented for the nine months ended March 31, 1994 due to the implementation of
"fresh-start' reporting in connection with the confirmation of the Reorganization Plan, which resulted in a revised capital
structure of the company as of September 30, 1993.
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