46: COLUMBIA DATA PRODUCTS INC. 9150-D Rumsey Rd. Columbia, Md. 21045
REVENUE: $50 million (est.) LOSS: $40 million (est.) LOSS PER SHARE: Not available DIVIDEND: None ASSETS: Not available STOCKHOLDERS' EQUITY: Not available RETURN ON EQUITY: NA EXCHANGE: OTC-Delisted EMPLOYES: 300 TOP EXECUTIVES: Robert Cross FOUNDED: 1975
DESCRIPTION: Columbia Data Products is a manufacturer of IBM-compatible personal computers.
DEVELOPMENTS: The past year has been extraordinarily difficult for the once-high-flying personal computer company. As the market for IBM PC compatibles shrank, so did Columbia's profits. Though estimated revenue is roughly comparable to last year's, the company's losses are estimated at nearly $40 million for the year ended Dec. 31 -- in sharp contrast to earnings of $6 million for 1983.
In fact, Columbia's situation is so uncertain that it has requested permission from the Securities and Exchange Commission to delay filing its annual report so a special audit can determine the company's financial condition. The results of the audit are expected by the end of May.
Because of the situation, the figures cited in the data table above are incomplete.
Columbia also has been delisted by the National Association of Securities Dealers exchange because the company no longer meets minimum capital requirements.
In addition, Columbia founder and chairman William Diaz resigned earlier this year and turnaround expert Robert Cross, who came on board last year, is trying to bring the company back. He asserts that Columbia currently is breaking even, but declines to say whether it will operate in the black this year.
Cross said that the company is negotiating with its creditors, who are owed $16 million, and with banks, which are owed $22 million, to convert its debt to preferred stock.
"If the negotiations are successful," the firm said in a prepared statement, "the company anticipates that it will again meet Nasdaq requirements." 47: SCHWARTZ BROS. INC. 4901 Forbes Blvd. Lanham, Md. 20706
REVENUE: $42 million PROFITS: $195,000 EARNINGS PER SHARE: 24 cents DIVIDEND: None ASSETS: $18 million STOCKHOLDERS' EQUITY: $5.5 million RETURN ON EQUITY: 3.6 percent (est.) EXCHANGE: OTC EMPLOYES: 130 TOP EXECUTIVES: Stuart Schwartz, chairman; James Schwartz, president FOUNDED: 1946
DESCRIPTION: Schwartz Bros. wholesales prerecorded and blank music and video tapes, phonograph records, computer software and accessories.
DEVELOPMENTS: Since selling its 24-store Harmony Hut record store chain in March 1984, Schwartz Bros. has repositioned itself as a wholesaler focusing on the video market. The decision to leave the retail record business appears to have helped the company, which reported a 50 percent jump in revenue for the fiscal year ended Jan. 31, 1985, from $28 million to $42 million, and a $195,000 profit compared with a $279,000 loss in fiscal 1984.
But despite the high revenue listed for fiscal 1985, profits dragged, and the company said it did not have a good year. Several extraordinary items ate into earnings, including fixed costs related to the retail operation that were absorbed into the wholesale business, bad debts and adjustments on old inventory. And whereas the gross operating margin for the Harmony Hut chain was 25 to 30 percent, the company said the gross margin for the video market is just 11 to 12 percent -- another reason for the lower profits. Net income for last year included a $167,000 life insurance claim for cochairman Bertram Schwartz, who died during the year, and a $26,000 final settlement on the Harmony Hut sale.
Schwartz Bros. is projecting continued growth in the prerecorded video tape market, which now accounts for 80 percent of its sales. In light of this, it has opened a new warehouse in Cherry Hill, N.J., giving it a distribution outlet for the Philadelphia and southern New Jersey market. 48: GENERAL PHYSICS CORP. 10650 Hickory Ridge Rd. Columbia, Md. 21044
REVENUE: $41.6 million PROFITS: $2.9 million EARNINGS PER SHARE: 79 cents DIVIDEND: None ASSETS: $34.2 million STOCKHOLDERS' EQUITY: $16.7 million RETURN ON EQUITY: 20.8 percent EXCHANGE: OTC EMPLOYES: 828 TOP EXECUTIVE: Robert W. Deutsch, president FOUNDED: 1966 DESCRIPTION: General Physics provides training services to nuclear and fossil fuel utilities as well as a wide range of services related to power plant start-up, operation, maintenance, information management and engineering support. DEVELOPMENTS: Faced with a decline in the construction of new nuclear power plants, General Physics took steps last year to diversify into the fossil fuel, synthetic oil and petrochemical power industries. It also expanded into the defense business, particularly in the areas of operations readiness, weapons systems support and preventive maintenance programs. The company predicted that one-third of its revenue in 1985 will come from defense work. It also said it is seeking new commercial and government business.
The changes helped boost sales by 18 percent and profits by 7 percent in the year ended Dec. 31, clipping the slump in profits that occurred in 1983. Business at General Physics had boomed after the accident at the Three Mile Island nuclear power plant in 1979 as power companies sought to ensure the safe operation of their plants, but that boom had fizzled over the last couple of years. 40: SOFTWARE AG SYSTEMS GROUP INC. 11800 Sunrise Valley Dr. Reston, Va. 22091
REVENUE: $41.1 million PROFITS: $5.9 million EARNINGS PER SHARE: 95 cents DIVIDEND: None ASSETS: $51.2 million STOCKHOLDERS' EQUITY: $32.8 million RETURN ON EQUITY: 17.9 percent EXCHANGE: OTC EMPLOYES: 260 TOP EXECUTIVES: John N. Maguire, chairman; Stuart J. Miller, president and chief executive officer FOUNDED: 1973
DESCRIPTION: Software AG and its operating unit, Software AG of North America Inc., develop and market software products designed to make information easier to create and distribute. The company is known for programs that help nontechnical persons use IBM's mainframe computers. Other products include ADABAS, a database management system; NATURAL, an application development language system, and COM-PLETE, a teleprocessing system that manages information flow.
DEVELOPMENTS: Expansion of Software AG's international business boosted results to record levels for the fiscal year ended May 31, 1984. Profits soared 375 percent over the 1983 figure of $1.2 million, and sales increased 37 percent during the same period. The growth continued into the first half of fiscal 1985, as earnings for the six months ended Nov. 30, 1984, jumped 54 percent over the comparable year-earlier period, and sales rose 32 percent.
Continuing the rapid pace of product development last year, Software AG introduced NATURAL/CONNECTION, which lets users of personal computers receive and transmit information stored in corporate mainframe computer systems. This product extends Software AG's reach into the personal business computer marketplace. 50: CERBERONICS INC. 5600 Columbia Pike Bailey's Crossroads, Va. 22041
REVENUE: $40.3 million PROFITS: $1.3 million EARNINGS PER SHARE: 77 cents DIVIDEND: Class A: 10 cents Class B: 8 cents ASSETS: $14.9 million STOCKHOLDERS' EQUITY: $11.1 million RETURN ON EQUITY: 11.5 percent EXCHANGE: OTC EMPLOYES: 353 TOP EXECUTIVES: Robert W. Erikson, president; Charles M. Mills, executive vice president and chief of operations FOUNDED: 1969
DESCRIPTION: Cerberonics specializes in engineering, analytical and technical support services, principally to the Department of Defense. The company's Logistic Division provides a wide range of weapons support services; the Metrology Division develops measurement and calibration systems to monitor the performance of weaponry, and the Advanced Technology Department is engaged in a variety of research, analysis and engineering programs.
DEVELOPMENTS: Cerberonics suffered a major blow in December when it learned that an expected follow-on to a key Navy contract to manage spare parts for the C-9 aircraft was being canceled. The company said the loss of the contract, which is to be rebid, would result in a "dramatic" reduction in its earnings and could force layoffs. In addition, the firm learned that another contract, to provide support to the TC-4C aircraft, also would be rebid. Together, the two contracts accounted for 63.4 percent of total revenue for the fiscal year ended June 30, 1984.
For the first six months of fiscal 1985, Cerberonics reported earnings of $884,000 (59 cents a share), up 20 percent from $734,000 (44 cents) the year before. The company attributed the increase to improved cost control. Sales declined to $19.1 million from $20.6 million, largely because of the loss of the contracts.