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):
October 24, 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)
Item 5. Other Events
On October 24, 1996, Computervision Corporation issued a press
release reporting on its earnings for the 1996 third 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 October 24, 1996
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: October 30, 1996
EXHIBIT INDEX
Exhibit No. Page. No.
(99) (a) Press Release dated October 24, 1996 5
Investor Contact: Media Contact:
William A. Foniri Paula Slotkin
Vice President of Finance, CFO Director, Public Relations
Computervision Corporation Computervision Corporation
(617) 275-1800, ext. 5168 (617) 275-1800, ext. 1838
WFONIRI@msgate.cv.com PSLOTKIN@msgate.cv.com
FOR IMMEDIATE RELEASE
Computervision Achieves Increased Momentum for Third Quarter
- -- Growth in Profitability and Software Product Revenue --
- -- Multiyear Marketing Agreement with Electronic Data Systems --
BEDFORD, Mass., October 24, 1996 -- Computervision Corporation (NYSE:CVN)
today reported results for the third quarter which showed increased
earnings and increased software product revenues over the comparable
period a year ago. It also announced that it has signed a major, long-
term joint marketing agreement with Electronic Data Systems (NYSE:EDS).
For the three months ended September 29, 1996, Computervision achieved
net income of $13.1 million, or $0.20 per share, compared to net income
of $8 million, or $0.16 per share, in the year ago third quarter.
Software product revenue for the third quarter of 1996 increased 39
percent to $55 million, compared with software product revenue of $39.6
million for the 1995 third quarter. Reflecting an expected decline in
hardware services revenue, total revenue for the 1996 third quarter was
$123.3 million, down slightly from total 1995 third quarter revenue of
$125.4 million.
For the nine months ended September 29, 1996, Computervision achieved net
income of $31.9 million, or $0.49 per share, on total revenue of $355.4
million, including software product revenue of $138.9 million. For the
comparable 1995 nine months, Computervision had net income of $18.1
million, or $0.36 per share, on total revenue of $376.2 million,
including software product revenue of $115.7 million.
Kathleen A. Cote, president and chief operating officer, stated, "This
has been an important quarter for Computervision in many respects. We
continued to grow our profitability and software product revenue, we
signed an agreement to sell our Open Service Solutions (OSS) business for
$125 million which will be reflected in the fourth quarter, and signed a
joint marketing agreement with EDS."
The first contract won under the EDS agreement is expected to result in
the delivery through EDS of $54 million of Computervision products and
services to the Rolls-Royce Aerospace Group and Allison Engine Company
over the next 10 years. Computervision believes this agreement will
significantly enhance its marketing power and marks a continued
commitment by the Rolls-Royce Aerospace Group to Computervision's
Electronic Product Definition(TM) (EPD(TM)) strategy and an expansion of
Computervision's business in the North American market with the Allison
Engine award.
Cote continued, "The products and services to be provided to Rolls-Royce
and Allison Engine are reflective of the power of the EDS agreement and
represents a transaction which, as anticipated, had an important effect
on this year's third quarter.
"The initial contract with Rolls-Royce and Allison Engine is important
not only because of its initial size, but also because it positions
Computervision to develop further business opportunities throughout the
extended supplier bases of these two companies.
"Computervision's momentum is continuing to build as evidenced by the
events of the past quarter. We are now in the process of converting a
number of our customers to our EPD suite of products. While this will
carry some higher costs in the interim, it will further expand EPD's
penetration into Computervision's customer base. In addition, we will
continue to add new customers and create greater long-term growth
opportunities," Cote stated.
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(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.
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 revenue 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 in the company's principal markets. The
company refers the reader to its filings with the Securities and Exchange
Commission for other risks and uncertainties.
####
Computervision, Computervision Services and the Computervision logo are
USPTO registered trademarks of Computervision Corporation. Electronic
Product Definition and EPD are trademarks of Computervision Corporation.
All other marks 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 visit the web site at http://www.cv.com.
COMPUTERVISION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended: September 29, 1996 October 1, 1995
- -------------------------------------------------------------------------
Software Revenue
Product $55,028,000 $39,625,000
Services 26,090,000 29,423,000
Total Software Revenue 81,118,000 69,048,000
Other Services Revenue 42,135,000 56,339,000
Total Revenue 123,253,000 125,387,000
Total Gross Profit Margin 67,914,000 65,214,000
Operating Expenses 45,161,000 43,993,000
Operating Income 22,753,000 21,221,000
Net Interest Expense and Other Expense 7,874,000 11,782,000
Provision for Income Taxes 1,785,000 1,416,000
---------- ----------
Net Income $13,094,000 $8,023,000
Earnings Per Share $0.20 $0.16
Weighted Average Shares Outstanding 64,478,000 50,794,000
Nine Months Ended: September 29, 1996 October 1, 1995
Software Revenue
Product $138,918,000 $115,703,000
Services 80,738,000 88,987,000
Total Software Revenue 219,656,000 204,690,000
Other Services Revenue 135,789,000 171,534,000
Total Revenue 355,445,000 376,224,000
Total Gross Profit Margin 192,648,000 191,422,000
Operating Expenses 133,344,000 135,445,000
Operating Income 59,304,000 55,977,000
Net Interest Expense and Other Expense 23,040,000 34,705,000
Provision for Income Taxes 4,349,000 3,176,000
----------- -----------
Net Income $31,915,000 $18,096,000
----------- -----------
Earnings Per Share $0.49 $0.36
Weighted Average Shares Outstanding 64,782,000 49,776,000
COMPUTERVISION CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS September 29, 1996 December 31, 1995
Cash and cash equivalents $23,487,000 $50,979,000
Accounts receivable, net 113,964,000 92,271,000
Other current assets 38,782,000 34,447,000
Total current assets 176,233,000 177,697,000
Property and equipment, net 38,079,000 49,026,000
Other assets 19,319,000 22,812,000
------------ ------------
Total assets $233,631,000 $249,535,000
------------ ------------
LIABILITIES AND STOCKHOLDERS' DEFICIT
Notes payable and current portion
of long-term debt $7,980,000 $8,211,000
Accounts payable and accrued expenses 176,756,000 211,868,000
Deferred revenue and customer advances 37,938,000 39,148,000
Total current liabilities 222,674,000 259,227,000
Long-term debt, less current portion 223,470,000 223,616,000
Other long-term liabilities 93,335,000 104,418,000
Stockholders' deficit (305,848,000) (337,726,000)
----------- -------------
Total liabilities and stockholders'
deficit $233,631,000 $249,535,000
------------ ------------