Buyout of Prime Computer limps towards denouement

Article Abstract:

The 1989 leveraged buyout of Prime Computer Inc is limping to an unhappy end, as the company no longer manufacturers its line of microcomputers, and its Computervision subsidiary is being held back financially because of the poor state of its parent company. Prime is reorganizing, calling itself Computervision, and asking investors to pump $600 million into the ailing company. Computervision is doing well financially as compared to Prime, with profits for the first half of 1992 at $11.3 million, 24 cents per share, on earnings of $565 million. Since the buyout, Prime has lost $400 million in earnings and laid off approximately 7,000 employees. Additionally, the company has had to issue bonds in order to cover payments to creditors. J.H. Whitney and Co acquired Prime in 1989 after management resisted a takeover attempt by MAI/Basic Four, led by Bennett LeBow.

Electronic computers, Computer industry, Layoffs, PRM, Layoff, Losses, Prime Computer Inc., Takeovers, Computervision Corp.

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Poor sales outlook topples Knowledgeware's shares

Article Abstract:

KnowledgeWare, a software company that specializes in computer-aided software engineering (CASE) programs for mainframe computers, shocked industry observers by announcing that revenues for the 3rd qtr 1991 might be as low as $20 million, which is half as much as the quarter that preceded it. The company says it did not expect to report a loss. KnowledgeWare's shares, which reached $43.25 in Spring 1991, dropped $6.875 when the news was announced, to $12.25. KnowledgeWare, which is run by former pro football star Fran Tarkenton, was already shaken because of recent management changes. Terry A. McGowan, the president and CEO, and Donald E. Ellis, senior VP for finance and administration, both left the company in Sep 1991. KnowledgeWare says a sales collapse consequent to the recession is the reason for the company's poor showing in the recent quarter.

Management, Profits, Sales, Computer-aided software engineering, Computer aided software engineering, Computer Software Industry, Profit, Stock, Tarkenton, Fran, KnowledgeWare Inc., KNOW

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MicroStrategy shares plunge on restatement

Article Abstract:

Forced by auditors at PricewaterhouseCoopers to restate 1999 earnings, MicroStrategy Inc.'s stock fell to $86.75, a decline of $140 per share. The stock plunge erased a market value of almost $12 million for the company. Auditors called for the company to defer 25% of its $205.4 million in reported 1999 revenue.

United States, Financial analysis, E-commerce software, Securities, Company securities, MicroStrategy Inc., MSTR

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