-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, P8vYt9dhe2ojM5nDP+udhInia11X8BIQ3mUjdUfrZv/ucW/GyzS36Tfgtxv4/L3s pw4yIuyrRhtu6pbgPrJ1Yg== 0000950008-97-000253.txt : 19970724 0000950008-97-000253.hdr.sgml : 19970724 ACCESSION NUMBER: 0000950008-97-000253 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970722 ITEM INFORMATION: Other events FILED AS OF DATE: 19970723 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: TANDEM COMPUTERS INC /DE/ CENTRAL INDEX KEY: 0000315180 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRONIC COMPUTERS [3571] IRS NUMBER: 942266618 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09430 FILM NUMBER: 97644438 BUSINESS ADDRESS: STREET 1: 19333 VALLCO PKWY CITY: CUPERTINO STATE: CA ZIP: 95014 BUSINESS PHONE: 4087256000 MAIL ADDRESS: STREET 1: 10435 N TANUTA AVE LOC 200 16 CITY: CUPERTINO STATE: CA ZIP: 95014 FORMER COMPANY: FORMER CONFORMED NAME: TCI DELAWARE INC DATE OF NAME CHANGE: 19600201 8-K 1 CURRENT REPORT ON FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) July 22, 1997 TANDEM COMPUTERS INCORPORATED - ------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 0-9134 94-2266618 - ---------------------------- ------------------- ---------------------- (State or Other Jurisdiction (Commission (I.R.S. Employer of Incorporation) File Number) Identification Number) 19333 Vallco Parkway, Cupertino, CA 95014 ---------------------------------------- -------------- (Address of principal executive offices) (Zip Code) (408) 285-6000 ------------------------------- (Registrant's telephone number, including area code) Item 5. Other Events. ------------ The Registrant's news release dated July 22, 1997, with respect to its financial results for the quarter ended June 30, 1997, including its comparative unaudited consolidated balance sheets as of June 30, 1997, and its comparative unaudited consolidated statements of operations for the three- and nine- month periods then ended, is attached and incorporated herein by reference. -2- 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. Dated: July 23, 1997. TANDEM COMPUTERS INCORPORATED By /s/ Enrico L. Pesatori --------------------------------------- Enrico L. Pesatori President, Chief Operating Officer and Acting Chief Financial Officer -3- R-134 Contact: Roberta DeTata (Financial) FOR RELEASE ON JULY 22, 1997 +1 (408) 285 4364 detata_roberta@tandem.com Eileen Quinn Smith (Press) +1 (408) 285 6722 smith_eileen@tandem.com World Wide Web: http://www.tandem.com TANDEM DELIVERS Q3 REVENUE GROWTH AND STRONG PROFITABILITY INCOME IMPROVES BY 85 PERCENT TO $43 MILLION; NEW-GENERATION NONSTOP HIMALAYA SERVERS START VOLUME SHIPMENT; CLUSTER-READY NONSTOP SOFTWARE PRODUCTS INTRODUCED CUPERTINO, Calif.-Tandem Computers Incorporated (NYSE:TDM) today announced results for the third fiscal quarter ended June 30, 1997. Quarterly revenues from continuing operations rose 8 percent to $503 million, compared with $466 million in the third quarter of fiscal year 1996. Quarterly income from continuing operations rose to $43 million (8.6 percent of revenue), or $0.36 per share, versus $23 million, or $0.20 per share, in the third quarter of fiscal year 1996. Revenues from continuing operations for the nine months ended June 30, 1997, were $1.4 billion, up 4 percent from the same period last year. Income from continuing operations for the nine months ended June 30, 1997, was $80 million, compared with a loss of $46 million for the same period last year. A restructuring charge of $52 million was posted in the second quarter of fiscal year 1996. Commenting on the quarter, Tandem Chief Executive Officer Roel Pieper said, "Tandem has made significant progress toward realizing the vision and strategy we put in place 18 months ago, and the company has clearly met its goal of delivering significant growth and strong profitability. Our NonStop(R) Himalaya(R) S-series servers, now shipping in volume, deliver a whole new level of price/performance for enterprise computing. Our powerful NonStop Software middleware will enable customers to deploy business-critical applications with maximum flexibility. With the shipment of our first highly reliable clustered Windows NT(R) Server system, we have fulfilled our promise to bring Tandem's fundamentals of reliability -4- and scalability to the broader market. These are all proof points of the success of our turnaround." President and Chief Operating Officer Enrico Pesatori said, "Tandem has continued to sharpen its focus, delivering solid revenue growth and good cost control in the third quarter. The achievement of high single-digit revenue growth and strong profit--due largely to the continued strength of our NonStop Himalaya line of servers, Tandem's growing success in the wireless communications sector, outstanding discount discipline in the field, and excellent manufacturing inventory and purchasing management--clearly demonstrates that the company is on track toward meeting its aggressive revenue and profit goals for the remainder of this year and 1998. The remarkable improvement in our gross margins testifies to the precise execution of our strategy." MARGINS RISE, BALANCE SHEET CONTINUES TO STRENGTHEN Tandem continued to exercise good cost control in the third quarter. Gross margins rose to 53.2 percent, an increase of 1.9 points over the previous quarter and the same period last year. Inventory days improved to 38 days versus the 40 days reported in the second quarter. The company's already strong cash position rose $11 million from Q2 to $228 million. NONSTOP HIMALAYA K-SERIES AND NEW S-SERIES SERVERS BOOST REVENUE Adding to the continuing brisk sales of the Tandem(R) NonStop Himalaya K-series servers, the company rolled out its new S-series servers in the third quarter as planned. The new product line is based on Tandem's high-performance ServerNet(TM) system area network and delivers greatly enhanced levels of price/performance. The full binary application compatibility of S-series and K-series servers ensures seamless coexistence and deployment for Tandem's customers. Volume shipment of the S-series platforms started in mid-June and contributed $22 million to the company's quarterly revenues. Customer acceptance of these new products--especially the high-end S70000 server--has been excellent. Overall system revenue for the quarter rose 10 percent as compared with the same period last year. -5- NONSTOP SOFTWARE LAUNCH DEMONSTRATES CLUSTER SCALABILITY During the third quarter, Tandem introduced its NonStop Software suite of cluster-ready middleware. This software delivers Tandem's fundamentals of availability and scalability to clustered Windows NT Server systems and brings new capabilities to NonStop Himalaya servers. The power of the NonStop SQL/MX database management system was convincingly demonstrated during the quarter in a complex decision support system: a 2-terabyte, 30-billion-row database deployed across a ServerNet technology-interconnected, 64-processor Windows NT Server cluster with a single, easily managed application image. AMERICAS AND JAPAN LEAD SALES, KEY VERTICAL MARKETS STAY STRONG The Americas and Japan continued to show solid performance in the third quarter with growth in key vertical markets. Finance and telecommunications accounted for 75 percent of Tandem's third-quarter system revenues. Continuing success in intelligent networking and wireless applications drove communications-related system revenues to $116 million for Q3, representing a 20 percent improvement over the same period last year. In addition to historical information, this press release contains forward-looking statements that involve risks and uncertainties, including but not limited to, product delivery and acceptance, currency fluctuation, and other risks detailed from time to time in the company's Securities and Exchange Commission filings, including the company's Form 10-Q for the quarter ended March 31, 1997, and the Form 10-Q for the quarter ended June 30, 1997, which will be filed shortly. Actual results may differ materially from management expectations. On June 23, 1997, Compaq Computer Corporation and Tandem Computers Incorporated announced the execution of a definitive merger agreement in a stock-for-stock transaction. Under the terms of the agreement, Tandem will become a wholly owned subsidiary of Compaq Computer Corporation. The merger is subject to regulatory review and approval by Tandem shareholders. -6- Founded in 1974, Tandem Computers Incorporated designs and delivers technology solutions that companies rely on to compete in a business world that runs 24 hours a day. A US$1.9 billion company headquartered in Cupertino, Calif., Tandem has offices, strategic partners, and providers in more than 50 countries around the world. Tandem, Himalaya, NonStop, ServerNet, and the Tandem logo are trademarks or registered trademarks of Tandem Computers Incorporated in the United States and/or other countries. Windows NT is either a registered trademark or a trademark of Microsoft Corporation in the United States and/or other countries. All other brand and product names are trademarks or registered trademarks of their respective companies. -- FINANCIAL SUMMARY APPENDED -- TANDEM COMPUTERS INCORPORATED AND SUBSIDIARIES Consolidated Statements of Operations (Unaudited)
- -------------------------------------------------------------------------------- For the three months ended -------------------------- June 30, June 30, (In thousands, except per share amounts) 1997 1996 - -------------------------------------------------------------------------------- REVENUES Product revenues $ 392,692 $ 372,208 Service and other revenues 109,882 93,570 - ------------------------------------------------------------------------------- Total revenues 502,574 465,778 - ------------------------------------------------------------------------------- COSTS AND EXPENSES Cost of product revenues 154,375 160,152 Cost of service and other revenues 80,979 66,859 Research and development 69,433 69,348 Marketing, general, and administrative 147,600 139,184 - ------------------------------------------------------------------------------- Total costs and expenses 452,387 435,543 - ------------------------------------------------------------------------------- OPERATING INCOME 50,187 30,235 Net interest income 2,049 22 - ------------------------------------------------------------------------------- INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 52,236 30,257 Provision for income taxes 9,000 6,919 - ------------------------------------------------------------------------------- INCOME FROM CONTINUING OPERATIONS 43,236 23,338 LOSS FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES -- (15,440) - ------------------------------------------------------------------------------- NET INCOME $ 43,236 $ 7,898 =============================================================================== PRIMARY EARNINGS (LOSS) PER SHARE CONTINUING OPERATIONS $ .36 $ .20 DISCONTINUED OPERATIONS -- (.13) - ------------------------------------------------------------------------------- EARNINGS PER SHARE $ .36 $ .07 =============================================================================== Primary weighted average shares outstanding 119,524 118,978 =============================================================================== FULLY DILUTED EARNINGS (LOSS) PER SHARE CONTINUING OPERATIONS $ .35 $ .20 DISCONTINUED OPERATIONS -- (.13) - ------------------------------------------------------------------------------- EARNINGS PER SHARE $ .35 $ .07 =============================================================================== Fully diluted weighted average shares outstanding 124,238 119,512 ===============================================================================
TANDEM COMPUTERS INCORPORATED AND SUBSIDIARIES Consolidated Statements of Operations (Unaudited)
- -------------------------------------------------------------------------------- For the nine months ended June 30, June 30, (In thousands, except per share amounts) 1997 1996 - -------------------------------------------------------------------------------- REVENUES Product revenues $ 1,099,028 $ 1,069,841 Service and other revenues 306,601 286,857 - -------------------------------------------------------------------------------- Total revenues 1,405,629 1,356,698 - -------------------------------------------------------------------------------- COSTS AND EXPENSES Cost of product revenues 452,345 463,038 Cost of service and other revenues 219,627 207,699 Research and development 202,798 210,751 Marketing, general, and administrative 434,961 447,770 Restructuring charge -- 52,000 - -------------------------------------------------------------------------------- Total costs and expenses 1,309,731 1,381,258 - -------------------------------------------------------------------------------- OPERATING INCOME (LOSS) 95,898 (24,560) Gain on sale of real estate 5,463 -- Net interest income 4,143 730 - -------------------------------------------------------------------------------- INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 105,504 (23,830) Provision for income taxes 25,500 21,757 - -------------------------------------------------------------------------------- INCOME (LOSS) FROM CONTINUING OPERATIONS 80,004 (45,587) INCOME FROM DISCONTINUED OPERATIONS, NET OF INCOME TAXES -- 5,894 GAIN ON DISPOSAL OF DISCONTINUED OPERATIONS, NET OF INCOME TAXES 989 -- - -------------------------------------------------------------------------------- NET INCOME (LOSS) $ 80,993 $ (39,693) ================================================================================ PRIMARY EARNINGS (LOSS) PER SHARE CONTINUING OPERATIONS $ .66 $ (.39) DISCONTINUED OPERATIONS -- .05 GAIN ON DISPOSAL OF DISCONTINUED OPERATIONS .01 -- - -------------------------------------------------------------------------------- EARNINGS (LOSS) PER SHARE $ .67 $ (.34) ================================================================================ Primary weighted average shares outstanding 120,201 117,346 ================================================================================ FULLY DILUTED EARNINGS (LOSS) PER SHARE CONTINUING OPERATIONS $ .64 $ (.39) DISCONTINUED OPERATIONS -- .05 GAIN ON DISPOSAL OF DISCONTINUED OPERATIONS .01 -- - -------------------------------------------------------------------------------- EARNINGS (LOSS) PER SHARE $ .65 $ (.34) ================================================================================ Fully diluted weighted average shares outstanding 125,497 117,346 ================================================================================ Note: Income from discontinued operations for the nine months ended June 30, 1996 includes a gain on the sale of investments of $30.6 million.
TANDEM COMPUTERS INCORPORATED AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited)
- -------------------------------------------------------------------------------------------- June 30, September 30, (In thousands, except per share amount) 1997 1996 - -------------------------------------------------------------------------------------------- ASSETS - -------------------------------------------------------------------------------------------- CURRENT ASSETS Cash and equivalents $ 227,822 $ 87,813 Accounts receivable, net 430,712 475,464 Current portion of lease receivables 85,702 74,624 Inventories 97,304 115,320 Prepaid expenses and other 76,904 43,749 Net current assets of discontinued operations -- 62,593 - ----------------------------------------------------------------------------------------- Total current assets 918,444 859,563 - ----------------------------------------------------------------------------------------- PROPERTY, PLANT, AND EQUIPMENT, at cost 1,267,894 1,246,950 Accumulated depreciation and amortization (744,821) (696,140) Net property, plant, and equipment of discontinued operations -- 30,402 - ----------------------------------------------------------------------------------------- Net property, plant, and equipment 523,073 581,212 - ----------------------------------------------------------------------------------------- LEASE RECEIVABLES 92,286 86,618 - ----------------------------------------------------------------------------------------- OTHER ASSETS 256,552 217,580 - ----------------------------------------------------------------------------------------- TOTAL ASSETS $ 1,790,355 $ 1,744,973 ========================================================================================= LIABILITIES AND STOCKHOLDERS' INVESTMENT - ----------------------------------------------------------------------------------------- CURRENT LIABILITIES Accounts payable $ 140,632 $ 135,821 Accrued liabilities 344,436 353,765 Current maturities of long-term obligations 82,888 93,740 - ----------------------------------------------------------------------------------------- Total current liabilities 567,956 583,326 - ----------------------------------------------------------------------------------------- LONG-TERM OBLIGATIONS 87,078 75,225 - ----------------------------------------------------------------------------------------- STOCKHOLDERS' INVESTMENT Common stock, $.025 par value, authorized 400,000 shares, outstanding 123,531 shares at June 30 and 121,318 shares at September 30 3,088 3,033 Additional paid-in capital 736,015 710,264 Retained earnings 499,697 420,363 Accumulated translation adjustments (6,816) 3,629 Treasury stock, at cost (96,663) (50,867) - ----------------------------------------------------------------------------------------- Total stockholders' investment 1,135,321 1,086,422 - ----------------------------------------------------------------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' INVESTMENT $ 1,790,355 $ 1,744,973 =========================================================================================
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