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): April 24,
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)
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Item 5. Other Events
- ---------------------
On April 24, 1997, Computervision Corporation issued a
press release reporting on its earnings for the first
quarter of 1997 (see copy of press release attached).
<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 April 24, 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: April 30, 1997
<PAGE>
EXHIBIT INDEX
-------------
Exhibit No. Page. No.
- ---------------------------------------------------------
(99) (a) Press Release dated April 24, 1997 6-9
<PAGE>
For Further Information
Investor Contact: Media Contact:
Mindy Kohl Paula Slotkin
Investor Relations Director, Public Relations
(617) 275-1800, ext. 4887 (617) 275-1800, ext. 1838
FOR IMMEDIATE RELEASE
Computervision Announces First Quarter Results
----------------------------------------------
BEDFORD, Mass., April 24, 1997 -- Computervision Corporation
(NYSE:CVN) today reported financial results for the first
quarter ending March 30, 1997. The Company posted total
revenue of $77.8 million for the quarter as compared to
$113.2 million in last year's first quarter. Total software
revenue in the first quarter of 1997 was $41.4 million,
compared to $68.7 million in the first quarter of 1996.
Total software product revenue in the first quarter of 1997
was $16.6 million, compared to $40.0 million in the first
quarter of 1996. Other services revenue from the CVSI
business for the first quarter of 1997 was $36.4 million as
compared to $44.5 million in the first quarter of 1996.
The Company reported a net loss of $0.53 per share in the
quarter just ended compared to earnings of $0.13 per share
for the Company in the first quarter of 1996. Included in
the operating results of the quarter is a non-recurring
charge of $7 million, or $0.11 per share, related primarily
to completing the separation of the CVSI services business
from the software business. The Company also reported an
operating loss of $0.26 per share, from the software
business in the first quarter of 1997, compared to an
operating profit of $0.17 per share for the first quarter of
1996. The CVSI business reported an operating loss of $0.15
per share in the first quarter of 1997, which included the
non-recurring charge of $0.11 per share in the quarter, as
compared to an operating profit of $0.09 per share in the
first quarter of 1996.
Computervision president and CEO Kathleen A. Cote commented,
"We are extremely disappointed in the results of the first
quarter. This reflects that our business continues to
consist of large contracts with long sales cycles. We
believe in the long-term growth prospects for our business,
which is supported by the adoption of Electronic Product
Definition(TM)(EPD(TM)) by leading companies such as Airbus,
United Defense L.P., and Andersen Windows. These companies
are using EPD to reinvent their product development
processes and create competitive advantage. We continue to
believe our focus on the EPD strategy will result in
improved performance in the second half of the year,
particularly in light of the recent introduction of
EPD.Connect(TM)and CADDS(R) NT."
The Company also announced it has reached a satisfactory
agreement with its lending banks to amend its credit
facility.
This press release contains "forward-looking" statements
under the federal securities laws. The Company notes that
the actual results could differ materially from those
projected, including: reliance on significant contracts from
large customers that make quarterly revenue and earnings
difficult to predict and the risks associated with new
product introduction and technology development by the
Company, as well as the introduction of new products into
the marketplace by its competitors. The Company refers the
reader to the section entitled, "Management Discussion and
Analysis of Financial Conditions and Results of Operations"
contained in the Company's Annual Report on Form 10-K for
the year ended December 31, 1996, filed with the Securities
and Exchange Commission for a description of other risks and
uncertainties.
Computervision Background
- -------------------------
Computervision Corporation is the 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(R) 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, the Computervision logo, and CADDS are USPTO
registered trademarks of Computervision Corporation.
Electronic Product Definition, EPD, and EPDConnect 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 should be directed to Investor
Relations at Computervision Corporation at 617-275-1800,
ext. 1871. For more information on Computervision, please
call 617-275-1800 or visit the Computervision web site at
http://www.cv.com.
COMPUTERVISION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended: March 30, 1997 March 31, 1996
- ------------------ -------------- --------------
<S> <C> <C>
Software Revenue
Product 16,609,000 $40,039,000
Services 24,752,000 28,678,000
---------- -------
- ---
Total Software Revenue 41,361,000 68,717,000
Other Services Revenue 36,448,000 44,518,000
---------- ----------
Total Revenue 77,809,000 113,235,000
Gross Profit Margin
Software 22,495,000 48,300,000
Other Services 2,954,000 12,228,000
Operating Expenses
Software 38,889,000 37,376,000
Other Services 5,713,000 6,068,000
Non-recurring Charge
Software - -
Other Services (1) 7,000,000 -
--------- ---------
Operating Income
Software (16,394,000) 10,924,000
Other Services (9,759,000) 6,160,000
---------- ----------
Total Operating Income (26,153,000) 17,084,000
Net Interest Expense and
Other Expense 7,791,000 7,805,000
Provision for Income Taxes 0 1,111,000
--------- ---------
Net Income ($33,944,000) $8,168,000
=========== ==========
Net Earnings per Share ($0.53) $0.13
=========== =========
Weighted Average Shares
Outstanding 63,567,000 64,944,000
(1) Operating Income for the three months ended March 30,
1997 included a pre-tax non-recurring charge related
primarily to completing the separation of the OSS business
from the software business.
</TABLE>
COMPUTERVISION CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
ASSETS March 30, 1997 December 31, 1996
- ------ -------------- ---------------
<S> <C> <C>
Cash and cash
equivalents $27,557,000 $38,565,000
Accounts receivable, net 76,792,000 102,509,000
Other current assets 23,844,000 23,467,000
----------- -----------
Total current assets 128,193,000 164,541,000
Property and equipment,
net 26,765,000 31,055,000
Other assets 11,662,000 12,749,000
----------- -----------
Total assets $166,620,000 $208,345,000
============ ============
LIABILITIES AND STOCKHOLDERS' DEFICIT
- -------------------------------------
Notes payable and current
portion of long-term
debt 10,298,000 $9,888,000
Accounts payable and
accrued expenses 168,156,000 174,099,000
Deferred revenue and
customer advances 45,279,000 40,503,000
----------- -----------
Total current
liabilities 223,733,000 224,490,000
Long-term debt, less
current portion 217,367,000 217,346,000
Other long-term
liabilities 79,039,000 83,284,000
Stockholders' deficit (353,519,000) (316,775,000)
----------- -----------
Total liabilities and
stockholders' deficit $166,620,000 $208,345,000
============ ============
</TABLE>
