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): January 10,
1997
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)
617-275-1800
(Registrant's telephone number, including area code)
_____________________________________________________________
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events
On January 10, 1997, Computervision Corporation issued a
preliminary press release reporting on its financial results for
the 1996 fourth quarter.
<PAGE>
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 January 10, 1997
<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: January 16, 1997
<PAGE>
EXHIBIT INDEX
Exhibit No. Page. No.
(99) (a) Press Release dated January 10, 1997 6-8
<PAGE>
For Further Information:
Investor Contact: Media Contact:
Kathryn Cadigan Paula R. Slotkin
Director, Investor Relations Director, Public Relations
(617) 275-1800, ext. 1871 (617) 275-1800, ext. 1838
FOR IMMEDIATE RELEASE
Computervision Announces Preliminary Fourth Quarter
and Annual Results
Sale of Hardware Service Unit Renegotiated; Cash
Portion Reduced
Company Acquires Technology from 3rd Angle Ltd.
Software License Revenue Estimated Up 17 Percent for Year
BEDFORD, Mass., January 10, 1997 -- Computervision Corporation
(NYSE:CVN) today reported preliminary results for the fourth
quarter ending December 31, 1996. The Company is providing
preliminary results for the continuing operations of its software
business, and for the discontinued operations of its Open Services
Solutions (OSS) hardware service business.
The Company expects to post total revenues from continuing
operations of approximately $80 million for the quarter vs. $78.7
million in last year's fourth quarter. This includes an estimated
$53 million of software license revenue in Q4 of 1996 compared to
$48 million in Q4 of 1995, a growth rate of 10 percent year over
year. Software license revenue is expected to be approximately
$192 million in 1996 vs. $163.7 million last year, a growth rate
of 17 percent. Total software company revenue for 1996 is
expected to be approximately $300 million vs. $283.4 million in
1995. The Company also expects to take a non-recurring charge in
the fourth quarter of approximately $14.5 million, or $0.22 per
share, associated with the purchase of 3rd Angle Ltd., a UK-based
technology company. Before the non-recurring charge, the Company
expects to report income from the continuing software business
operations of approximately $.08 per share in the fourth quarter
of 1996, compared to $.06 per share for the fourth quarter of
1995.
Fourth quarter earnings per share from the discontinued OSS
operations are expected to be approximately $.05 per share,
compared to $0.14 per share in last year's fourth quarter.
Including the non-recurring charge and results from discontinued
operations, the Company expects to report a net loss of
approximately $.09 per share for the quarter.
In addition, the Company announced today that it has agreed to
revised terms for the sale of OSS to an investment group headed by
J. F. Lehman & Company, which reduced the cash portion of the
purchase price from $100 million to $65 million. This reduction
is a result of a shortfall of revenues and profits in this
business in Q3 and Q4 amounting to approximately $0.12 per share.
Upon closing the transaction, the business will be conducted under
the name of CV Services International, Inc. The revised agreement
is for $65 million in cash, $25 million in preferred stock in CV
Services International, Inc., and warrants to purchase common
shares representing 16 percent of CV Services International, Inc.
The sale is subject to Lehman's securing financing and regulatory
approval, as is the normal practice for such transactions.
Computervision CEO Kathleen A. Cote commented, "While the drop in
sale price for OSS was made necessary by the performance of this
business, the sale of OSS is a critical step in allowing
Computervision to pursue its strategy as a software/solutions
company."
In announcing the acquisition of 3rd Angle Ltd. of Cambridge,
England, the Company noted that this technology is expected to
accelerate the market entry of Computervision's PELORUS(TM) products
and enhance the Company's internal product development process.
"Software license revenue growth is expected to be approximately
17 percent for the year and 23 percent for the second half of
1996. While this falls short of our annual goal of 20 percent, it
is encouraging relative to the negative to flat growth we
experienced in the previous three years. Our growth in software
license revenue is directly attributable to our Electronic Product
Definition(TM) (EPD(TM)) strategy. In 1996, estimated EPD product
revenues are 27 percent higher than last year on a worldwide
basis. In North America, a market that has been historically
difficult for the Company, we saw product revenue grow
approximately 50 percent year to year. In 1996, we experienced
inconsistent product revenue growth rates on a quarter to quarter
basis, a result of our reliance on large EPD transactions," said
Cote.
Assuming the successful completion of the OSS sale in Q1 1997, the
resulting gain is expected to be recognized in that quarter and is
expected to be significantly offset by shut-down costs associated
with the transaction. These charges, coupled with the non-
recurring charges of Q4 1996, are expected to reduce annual
expenses by approximately $20 million for the software company
going forward.
These estimated results are preliminary, subject to the Company's
closing its books and the Company's management and independent
auditors completing their customary quarterly review procedures.
Computervision plans to announce final results for the fourth
quarter and full year 1996 on Tuesday, January 28.
Computervision Background
Computervision Corporation is a leading international supplier of
Electronic Product Definition solutions for developing,
delivering, and maintaining products throughout their life cycle.
For more than 26 years, the Company's product development software
solutions have helped manufacturers improve product quality and
reduce time to market. Computervision Services(TM) 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 located
throughout the world.
Computervision, Computervision Services and the Computervision
logo are USPTO registered trademarks of Computervision
Corporation. Electronic Product Definition, EPD and PELORUS are
trademarks of Computervision Corporation. All other trademarks
are trademarks of their respective owners.
A copy of this release plus financial, product and other company
information is available via fax by dialing 1-800-546-4616. Any
questions concerning the service should be directed to Investor
Relations at Computervision Corporation at 617/ 275-1800. For more
information on Computervision, please call (617) 275-1800, or
visit the Computervision web site at http://www.cv.com.
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