SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM 8-K
CURRENT REPORT
Securities Exchange Act of 1934
Date of Report (date of earliest event reported)July 11, 1996
Computervision Corporation
(Exact name of registrant as specified in charter)
Delaware 1-7760/0-20290 04-2491912
(State or other (Commission (IRS Employer
jurisdiction File Numbers) Identification
of incorporation) Number)
100 Crosby Drive, Bedford, MA 01730
(Address of principal executive offices)
Registrant's telephone number, including area code
(617) 275-1800
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events
On July 11, 1996, the Company issued a preliminary press release on its
financial results for the 1996 second quarter.
On July 18, 1996, the Company issued a press release reporting on its
earnings for the 1996 second quarter.
Item 7. Financial Statements and Exhibits
(a) Financial Statements of business acquired:
Not applicable
(b) Pro Forma financial information
Not applicable
(c) Exhibits:
(99)(a) Press Release dated July 11, 1996
(99)(b) Press Release dated July 18, 1996
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Computervision Corporation
(Registrant)
By:
Anthony N. Fiore, Jr.
Vice President, Business
Operations and General Counsel
Date: July 25, 1996
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Computervision Corporation
(Registrant)
By /S/ Anthony N. Fiore, Jr.
Anthony N. Fiore, Jr.
Vice President, Business
Operations and General Counsel
Date: July 25, 1996
<PAGE>
EXHIBIT INDEX
Exhibit No. Page. No.
(99)(a) Press Release dated July 11, 1996 6,7
(99)(b) Press Release dated July 18, 1996 8,9,10,11
<PAGE>
FOR IMMEDIATE RELEASE
=====================
*** Computervision Reports Preliminary Second Quarter Results ***
BEDFORD, Mass., July 11, 1996 -- Computervision Corporation (NYSE:CVN)
today reported preliminary operating results. The company expects to
achieve earnings per share of approximately $0.16 for its second
quarter ended June 30, 1996, on net revenues of about $119 million,
which includes an estimated $44 million of software license revenue.
As a result, Computervision's 1996 second quarter earnings will be an
increase over both the $0.13 earnings per share for its 1996 first
quarter and the $0.14 earnings per share for the comparable quarter of
a year ago. Software license revenue grew approximately 10 percent
over the first quarter and is around the same level as second quarter
1995.
Kathleen A. Cote, president and chief operating officer, stated, "While
we are pleased with our increasing profitability, we recognize that
$0.16 earnings per share is below financial analysts' earnings
estimates of $0.18 - $0.19 for the quarter and our own previously
stated software revenue goal for the quarter of 20 percent year-over-
year growth. Some large potential contracts, which we had hoped to
close by the end of the second quarter and, therefore, would have
further added to software revenues and profits for this quarter, now
appear likely to be closed, along with some other large contracts,
during the third quarter and over the remainder of the second half of
the year."
Cote added, "We continue to believe that our goals for 1996
profitability can be achieved and are confident that the business
relationships we are building with our customers are validating our
business strategy and approach. We are focused on building a pipeline
of large orders, and this, coupled with our expanded sales and
marketing efforts on broader market opportunities, should allow us to
reach our second-half software revenue growth objectives."
During the quarter Computervision achieved a number of important
Electronic Product Definition (EPD) wins from its installed base and
new customers, further demonstrating the acceptance of this strategy in
the marketplace. Contracts closed this quarter include Andersen
Corporation, BMW Rolls-Royce, British Telecom, DCN, Embraer SA,
Ericsson, Fiat, Kansei, Lucas Aerospace, Port Authority of New York and
New Jersey, and ZZSD Zelmer.
Computervision's Electronic Product Definition strategy is a proven
approach to developing, delivering, and maintaining products throughout
the entire product life cycle. Electronic Product Definition allows
every part of an organization - design, development, manufacturing,
<PAGE>
support - to work in an optimized collaborative environment.
Final financial results for the second quarter will be provided on July
18, 1996.
Company Background
- ------------------
Computervision Corporation is a leading international supplier of
desktop and enterprise-wide product development software and services.
For more than 25 years, the company's product and process data
management (PDM) and design automation (CAE/CAD/CAM) software solutions
have helped manufacturers improve product quality and reduce time to
market. Computervision Services provides best-practices consulting
programs to support product development process reengineering and
technology implementation. Computervision Services also supports
applications, systems and networks in heterogeneous computing
environments. Computervision is headquartered in Bedford,
Massachusetts, and provides sales and support services to its customers
through its offices worldwide.
For Further Information:
- ------------------------
Investor Contact: Media Contact:
William A. Foniri Paula R. Slotkin
Vice President, Treasurer Director, Public Relations
(617) 275-1800 ext. 5168 (617) 275-1800 ext. 1838
###
<PAGE>
FOR IMMEDIATE RELEASE
=====================
*** Computervision Reports Second Quarter Earnings ***
-- Company on Track to Meet 1996 Profitability Goals --
BEDFORD, Mass., July 18, 1996 -- As previously indicated, Computervision
Corporation today reported earnings for the second quarter ended June 30,
1996, of $0.16 per share on net revenues of $119 million. This represents
an increase over both the $0.13 earnings per share recorded for the first
quarter of 1996 and the $0.14 earnings per share for the comparable quarter of
a year ago. Software product revenue for the 1996 second quarter was $43.9
million, compared with $40 million for the first quarter of 1996, and $43.1
million for the year earlier quarter. For the first six months of 1996,
Computervision reported net income of $18.8 million or $0.29 per share as
compared to $10.1 million or $0.20 per share for the same period in 1995.
Kathleen A. Cote, president and chief operating officer stated, "We
remain confident about our business and its growth potential. Our
Electronic Product Definition (EPD) strategy is gaining wide acceptance
in the marketplace. This is evidenced by substantial orders from
established and new Computervision customers for our EPD solution, our
open EPD tools and other products and services. Our pipeline of new
business is continuing to grow in each of our major geographies,
including the U.S., Europe, Asia and emerging markets such as Eastern
Europe and Latin America.
"We continue to believe that our goals for 1996 profitability can be
achieved and are confident that our expanded sales and marketing
efforts should allow us to reach our second-half software revenue
growth objectives," said Cote.
Computervision's Electronic Product Definition strategy is an approach
to developing, delivering, and maintaining products throughout the
entire product development life cycle. Electronic Product Definition
allows every part of an organization -- design, development,
manufacturing, and support -- to work in an optimized collaborative
environment, sharing design information and responding quickly to
design changes as they happen.
Computervision Background
- -------------------------
Computervision Corporation is a leading international supplier of
desktop and enterprise-wide product development software and services.
For more than 25 years, the company's product and process data
management (PDM) and design automation (CAE/CAD/CAM) software solutions
have helped manufacturers improve product quality and reduce time to
market. Computervision Services provides best-practices consulting
programs to support product development process reengineering and
technology implementation. Computervision Services also supports
<PAGE>
applications, systems, and networks in heterogeneous computing
environments. Computervision is headquartered in Bedford,
Massachusetts, and provides sales and support services to its customers
through its offices located throughout the world.
This press release contains "forward-looking" statements under the
federal securities laws. The Company notes that actual results could
differ materially from those projected. Various factors could cause
actual results to differ materially from those projected, including:
reliance on significant contracts from large customers that make
quarterly revenues and earnings difficult to predict, the risks
associated with new product introduction and technology development by
the Company, product introductions or price changes by the Company's
competitors, and general economic conditions by the Company's principal
markets. The Company refers the reader to its filings with the
Securities and Exchange Commission for other risks and uncertainties.
For Further Information:
========================
Investor Contact: Media Contact:
- ----------------- --------------
William A. Foniri Paula Slotkin
Vice President, Treasurer Director, Public Relations
Computervision Corporation Computervision Corporation
(617) 275-1800, ext. 5168 (617) 275-1800, ext. 1838
COMPUTERVISION CORPORATION
--------------------------
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
-----------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended: June 30, 1996 July 2, 1995
- ------------------- -------------- --------------
<S> <C> <C>
Software Revenue
Product $43,851,000 $43,065,000
Services 26,767,000 30,931,000
-------------- --------------
Total Software Revenue 70,618,000 73,996,000
Other Services Revenue 48,339,000 57,366,000
-------------- --------------
Total Revenue 118,957,000 131,362,000
Total Gross Profit Margin 64,206,000 66,977,000
Operating Expenses 44,739,000 46,768,000
-------------- --------------
Operating Income 19,467,000 20,209,000
<PAGE>
Net Interest Expense and
Other Expense 7,361,000 11,832,000
Provision for Income Taxes 1,453,000 1,250,000
-------------- --------------
Net Income $10,653,000 $7,127,000
============== ==============
Earnings Per Share $0.16 $0.14
Weighted Average Shares Outstanding 64,923,000 49,388,000
Six Months Ended: June 30, 1996 July 2, 1995
- ------------------- -------------- --------------
Software Revenue
Product $83,890,000 $76,078,000
Services 54,648,000 59,564,000
-------------- --------------
Total Software Revenue 138,538,000 135,642,000
Other Services Revenue 93,654,000 115,195,000
-------------- --------------
Total Revenue 232,192,000 250,837,000
Total Gross Profit Margin 124,734,000 126,208,000
Operating Expenses 88,183,000 91,452,000
-------------- --------------
Operating Income 36,551,000 34,756,000
Net Interest Expense and
Other Expense 15,166,000 22,923,000
Provision for Income Taxes 2,564,000 1,760,000
-------------- --------------
Net Income $18,821,000 $10,073,000
============== ==============
Earnings Per Share $0.29 $0.20
Weighted Average Shares Outstanding 64,933,000 49,266,000
</TABLE>
- -----------------------------------------------------------------------
<PAGE>
COMPUTERVISION CORPORATION
--------------------------
CONDENSED CONSOLIDATED BALANCE SHEETS
-------------------------------------
<TABLE>
<CAPTION>
Assets June 30, 1996 December 31, 1995
- ------------------------- -------------- -----------------
<S> <C> <C>
Cash and Cash Equivalents $33,291,000 $50,979,000
Accounts Receivable, net 100,009,000 92,271,000
Other Current Assets 37,769,000 34,447,000
-------------- --------------
Total Current Assets 171,069,000 177,697,000
Property and Equipment, net 42,418,000 49,026,000
Other Assets 20,422,000 22,812,000
-------------- --------------
Total Assets $233,909,000 $249,535,000
============== ==============
Liabilities and Stockholders'
Deficit
- -----------------------------
Notes Payable and Current
Portion of Long-Term Debt $8,174,000 $8,211,000
Accounts Payable and Accrued
Expenses 184,148,000 211,868,000
Deferred Revenue and Customer
Advances 40,916,000 39,148,000
-------------- --------------
Total Current Liabilities 233,238,000 259,227,000
Long-Term Debt, less current
portion 223,427,000 223,616,000
Other Long-Term Liabilities 96,268,000 104,418,000
Stockholders' Deficit (319,024,000) (337,726,000)
-------------- --------------
Total Liabilities and
Stockholders' Deficit $233,909,000 $249,535,000
============== ===============
</TABLE>
###
