Ampex Corporation Reports 2005 Financial Results.REDWOOD CITY Redwood City, city (1990 pop. 66,072), seat of San Mateo co., W Calif., on San Francisco Bay; inc. 1868. Manufactures include commmunications, electrical, electronic, and medical equipment. , Calif. -- Ampex (Ampex Corporation, Redwood City, CA, www.ampex.com) A manufacturer of video storage and image processing products. Founded in 1944 by Alexander M. Poniatoff, Ampex pioneered the video recording industry, introducing the first videotape recorder in 1956 and providing innovative products Corporation (Nasdaq:AMPX) today reported preliminary unaudited year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. and fourth quarter 2005 financial results. Ampex announced income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $5.8 million ($1.51 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share) on revenues of $53.2 million in fiscal 2005 compared to income from continuing operations of $48.5 million ($12.73 per diluted share) on revenues of $101.5 million in fiscal 2004. Key milestones affecting 2005 financial results included: --Licensing revenue in 2005 totaled $28.9 million, the upper end of the forecasted range, and most digital still camera manufacturers are licensees. --Patent litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. costs of $2.48 per diluted share adversely impacted our licensing segment's operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $4.50 per diluted share. The suit against Eastman Kodak (company) Kodak - The photographic company responsible for Photo CD. http://kodak.com/. Company is scheduled for trial in December December: see month. 2006. --We continue to meet with licensees to investigate whether our other digital imaging patents, including feed forward quantization (1) The division of a range of values into a single number, code or classification. For example, class A is 0 to 999, class B is 1000 to 9999 and class C is 10000 and above. (2) In analog to digital conversion, the assignment of a number to the amplitude of a wave. , are being used in their products. Royalties on digital still cameras after April 2006 will be materially dependent on these discussions. --We expect licensing revenues from digital camcorders will increase in 2006 from 2005, when such revenues totaled $7.8 million, because the 2004 prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. from Sony SONY Standard Oil of New York (common, but untrue; it's an urban legend) Corporation expires in April 2006. --Due to the uncertain timing of license negotiations and the possible need to bring litigation, we are unable to provide a forecast of licensing revenue or operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. in 2006. --The Recorder recorder, musical wind instrument of the flute family, made of wood, varying in length, and having an inverted conical bore (largest end near the mouthpiece). segment earned operating income of $0.48 per diluted share in 2005. New products sales are growing and now account for 67% of product sales. Backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. had increased significantly to $9.1 million at year-end. --We have incurred a number of corporate expenses in 2005, many of which we expect will be reduced in future years. Licensing revenue in 2005 totaled $28.9 million and attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. the upper end of the range between $20 to $30 million forecast at the beginning of the year. The majority of licensing revenue resulted from settlements reached during the year with several manufacturers of digital still cameras. These settlements covered past use and in certain cases prepayment of royalty obligations through April 11, 2006, the date of expiration Date of Expiration (2002) is an aggrotech single by Funker Vogt. Track listing
The Licensing segment reported operating income of $17.3 million ($4.50 per diluted share) in fiscal 2005, after litigation costs totaling $9.5 million ($2.48 per diluted share) related to the suit against Eastman Kodak Company for infringement The encroachment, breach, or violation of a right, law, regulation, or contract. The term is most frequently used in reference to the invasion of rights secured by Copyright, patent, or trademark. of our rapid image retrieval An image retrieval system is a computer system for browsing, searching and retrieving images from a large database of digital images. Most traditional and common methods of image retrieval utilize some method of adding metadata such as captioning, keywords, or descriptions to the patent used in digital still cameras. This case is currently scheduled to go to trial in December 2006. The Licensing segment reported operating income of $65.3 million ($17.15 per diluted share) in fiscal 2004, after patent litigation costs totaling $4.9 million ($1.29 per diluted share). In the fourth quarter of 2005, licensing revenues were $2.5 million and litigation costs were $1.4 million resulting in operating income of $0.6 million for the period ($0.15 per diluted share). In the fourth quarter of 2004, the licensing segment reported licensing revenue of $68.0 million, litigation costs of $1.5 million and operating income of $65.1 million ($16.82 per diluted share) as a result of the settlements described above. In the fourth quarter of 2005, Ampex met with several current digital still camera licensees to investigate whether our other digital imaging patents, which expire expire /ex·pire/ (ek-spi´er) 1. to exhale. 2. to die. ex·pire v. 1. To breathe one's last breath; die. 2. To exhale. at various dates through 2014, are being used in their products. Discussions have continued in the first quarter of 2006, and we have now provided claim charts to three digital still camera manufacturers indicating infringement of our feed forward quantization patents. We currently expect to provide similar claim charts to additional manufacturers. The continuation of royalties from digital still camera manufacturers after April 2006 will be materially dependent on results of discussions that are currently in progress. Due to the status of investigations into manufacturer's use of our other digital imaging patents, the timing of when negotiations may result in new agreements and the possibility that we will be required to commence litigation to enforce our patents, we are not able, at present, to provide a reliable forecast of licensing revenue or operating profits for our Licensing segment in 2006. However, we continue to expect that licensing revenues from digital camcorders will increase in 2006 compared with 2005, when such revenues totaled $7.8 million, because the 2004 Sony Corporation prepayment expires in April 2006. Revenues from our Recorders segment's sale of products and services totaled $24.2 million in fiscal 2005, as compared to $28.6 million in fiscal 2004 reflecting the continued transition of our product line from older tape-based instrumentation instrumentation, in music: see orchestra and orchestration. instrumentation In technology, the development and use of precise measuring, analysis, and control equipment. recorders to new solid-state sol·id-state adj. Based on or consisting chiefly or exclusively of semiconducting materials, components, and related devices. solid-state Adjective and disk-based instrumentation recorders. In 2005, our new products accounted for 67% of product sales, whereas in 2004 they represented 9% of product sales. Also, our backlog has increased to $9.1 million at year-end 2005, up from $3.7 million at year-end 2004. The increase is due in part to a multi-year order from The Boeing (language) BOEING - An early system on the IBM 1130. [Listed in CACM 2(5):16, May 1959]. Company for our new products to be used in the development of the 787 airplane airplane, aeroplane, or aircraft, heavier-than-air vehicle, mechanically driven and fitted with fixed wings that support it in flight through the dynamic action of the air. . Additionally, in the fourth quarter of 2005, we received approval from the U.S. Navy to supply up to $5 million of our new instrumentation recorders over the next three years, which is not included in year-end backlog, as it is subject to receipt of specific purchase orders. Operating income for the Recorders segment was $1.8 million ($0.48 per diluted share) in fiscal 2005, compared to operating income of $1.5 million ($0.40 per diluted share) in fiscal 2004. In the fourth quarter of 2005, the Recorders segment reported revenues from the sale of products and services totaling $6.2 million, operating costs operating costs npl → gastos mpl operacionales of $5.4 million and an operating profit of $0.8 million ($0.20 per diluted share). In the fourth quarter of 2004, the Recorder segment reported revenues from the sale of products and services totaling $6.3 million, operating costs of $7.3 million and an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $1.0 million ($0.25 per diluted share). We currently expect an increase in Recorders segment revenues and operating income during 2006 based on the levels of backlog and proposal activity that we are experiencing. We continue to develop new products for the Recorder segment including a new high resolution recorder. Set forth below is a schedule of corporate operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. that are not allocated to our business segments. We currently anticipate that the special accounting and non-patent related legal costs will decline in future periods.
Full Year Fourth Quarter
2005 2004 2005 2004
---- ---- ---- ----
(in millions)
U.S. and foreign pension costs $3.5 $3.0 $1.2 $1.2
Legal and accounting fees
including Sarbanes Oxley
related costs $2.0 $1.2 $0.6 $0.4
Corporate compensation and benefits $1.0 $0.9 $0.6 $0.4
Business development expense $1.0 $0.6 $0.2 $0.2
Incentive fees received - ($0.6) - -
Other costs $2.4 $2.3 $0.6 $0.7
Other Matters The Company expects to file Form 12b-25 with the Securities and Exchange Commission to obtain a 15-day extension to March 31, 2006 to file its 2005 annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . The Company's independent accountants have advised us that they require additional time to complete their audit procedures pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to our consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge and internal control over financial reporting in connection with our initial year of compliance with Section 404 of the Sarbanes-Oxley Act See SOX. of 2002 and, as a result, have been unable to complete their audit of our financial statements and their audit of management's assessment of the effectiveness of our internal controls within the prescribed pre·scribe v. pre·scribed, pre·scrib·ing, pre·scribes v.tr. 1. To set down as a rule or guide; enjoin. See Synonyms at dictate. 2. To order the use of (a medicine or other treatment). period. Accordingly, the results and related per share amounts discussed above are preliminary and subject to adjustment pending completion of the 2005 audit. The Company expects to file the 2005 Form 10-K on or before March 31, 2006. As previously announced, the Company will host a conference call on Wednesday Wednesday: see week. , March 15, 2006 at 4:30 p.m. eastern time to discuss its 2005 financial results. To access the call, please call Genesys Conferencing  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . at (866) 814-1917 and press *871676* to enter the call. Parties interested in asking questions of management are requested to give the moderator moderator - A person, or small group of people, who manages a moderated mailing list or Usenet newsgroup. Moderators are responsible for determining which email submissions are passed on to the list or newsgroup. their name and telephone contact information. A replay of the conference call will be available on the Ampex website for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. one week.(www.ampex.com, 2005 earnings call) shortly after the call has been concluded. Ampex Corporation, www.Ampex.com, headquartered in Redwood City, California Redwood City is a suburb located on the San Francisco Peninsula in the San Francisco Bay Area of California. Redwood City is the county seat of San Mateo County. As of the 2005 census, the city had a total population of 76,000. , is one of the world's leading innovators innovators people who will try new things. early innovators important figures in the farming or client community because they are the leaders in the introduction of new techniques and management systems. and licensors of technologies for the visual information age. This news release contains predictions, projections and other statements about the future that are intended to be "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of l995 (collectively, "forward-looking statements"). Forward-looking statements relate to various aspects of the Company's operations and strategies, including but not limited to the effects of having experienced significant losses in the past and the risk that the Company may incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. losses in the future; the Company's limited liquidity and significant indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. and interest expense; its sales and royalty revenues declining in future periods, and the risk that the Company will not conclude additional royalty-bearing license agreements covering its digital technologies; the Company's marketing, product development, acquisition, investment, licensing and other strategies not being successful; possible future issuances of debt or equity securities; the possible incurrence In`cur´rence n. 1. The act of incurring, bringing on, or subjecting one's self to (something troublesome or burdensome); as, the incurrence of guilt, debt, responsibility, etc. s> Noun 1. of significant patent litigation expenses or adverse legal determinations finding the Company's patents not be valid or not to have been infringed; new business development and industry trends; the possible need to raise additional capital in order to meet the Company's obligations; reliance on a former affiliate to make contributions to the Company's pension plans which are substantially underfunded un·der·fund tr.v. un·der·fund·ed, un·der·fund·ing, un·der·funds To provide insufficient funding for. underfunded adj → infradotado (económicamente) ; the ability to file audited financial statements with the SEC within prescribed filing dates and most other statements that are not historical in nature. Important factors that could cause actual results to differ materially from those described in the forward-looking statements are described in cautionary statements included in this news release and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. in the Company's 2005 Annual Report on Form 10-K expected to be filed with the SEC shortly and its Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. . In assessing forward-looking statements, readers are urged to consider carefully these cautionary statements. Forward-looking statements speak only as of the date of this news release, and the Company disclaims any obligations to update such statements.
AMPEX CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands, except share and per share data)
For the Three Months
Ended
Dec. 31, Year Ended Dec. 31,
------------------------ -------------------------
2005 2004 2005 2004
----------- ------------ ------------ ------------
(unaudited) (unaudited)
Licensing revenue $ 2,464 $ 68,008 $ 28,914 $ 72,869
Product revenue 3,933 4,076 15,382 19,843
Service revenue 2,277 2,243 8,858 8,739
----------- ------------ ------------ ------------
Total revenue 8,674 74,327 53,154 101,451
----------- ------------ ------------ ------------
Intellectual
property costs 1,903 2,956 11,604 7,551
Cost of product
revenue 2,176 3,713 9,440 14,017
Cost of service
revenue 644 742 2,765 2,735
Research,
development and
engineering 993 1,081 4,205 3,934
Selling and
administrative 4,814 4,620 15,940 13,780
Restructuring
charges (credits) - - - (1,410)
----------- ------------ ------------ ------------
Total costs and
operating
expenses 10,530 13,112 43,954 40,607
----------- ------------ ------------ ------------
Operating income
(loss) (1,856) 61,215 9,200 60,844
Media pension costs 194 2,971 774 3,936
Interest expense 600 2,420 2,481 9,732
Amortization of
debt financing
costs 2 15 195 57
Interest income (80) (73) (264) (161)
Other (income)
expense, net (2) 201 (547) (179)
----------- ------------ ------------ ------------
Income (loss)
from continuing
operations before
income taxes and
equity in income
of limited
partnership,
including sale of
investment (2,570) 55,681 6,561 47,459
Provision for
(benefit of)
income taxes (131) 850 749 1,098
Equity income of
limited
partnership,
including sale of
investment - - - (2,149)
----------- ------------ ------------ ------------
Net income (loss)
from continuing
operations (2,439) 54,831 5,812 48,510
Income (loss) from
discontinued
operations (net of
taxes of $19 in
2005 and nil in
2004) 915 (2,500) 915 (2,148)
----------- ------------ ------------ ------------
Net income (loss) (1,524) 52,331 6,727 46,362
Other comprehensive
income (loss),
net of tax:
Foreign currency
translation
adjustments (45) (28) (148) 18
Minimum pension
adjustment (21,761) 1,844 (21,761) 1,844
----------- ------------ ------------ ------------
Comprehensive
income (loss) $ (23,330) $ 54,147 $ (15,182) $ 48,224
=========== ============ ============ ============
Basic income (loss)
per share:
Basic income
(loss) per share
from continuing
operations $ (0.64) $ 14.89 $ 1.56 $ 13.21
Basic income
(loss) per share
from discontinued
operations $ 0.24 $ (0.68) $ 0.24 $ (0.58)
Basic income
(loss) per share $ (0.40) $ 14.21 $ 1.80 $ 12.63
----------- ------------ ------------ ------------
Weighted average
number of basic
common shares
outstanding 3,783,385 3,683,588 3,734,916 3,671,803
=========== ============ ============ ============
Diluted
undistributed
income (loss)
per share:
Diluted income
(loss) per share
from continuing
operations $ (0.64) $ 14.18 $ 1.51 $ 12.73
Diluted income
(loss) per share
from discontinued
operations $ 0.24 $ (0.65) $ 0.24 $ (0.56)
Diluted income
(loss) per share $ (0.40) $ 13.53 $ 1.75 $ 12.17
----------- ------------ ------------ ------------
Weighted average
number of diluted
common shares
outstanding 3,783,385 3,866,899 3,850,846 3,809,514
=========== ============ ============ ============
AMPEX CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
Dec. 31, Dec. 31,
2005 2004
---------- -----------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 13,070 $ 8,840
Short-term investments - 9,134
Accounts receivable (net of allowances
of $78 in 2005 and $74 in 2004) 3,091 2,602
Inventories 5,862 5,187
Royalties receivable 735 -
Cash collateral on letter of credit 1,483 1,424
Other current assets 873 647
Property held for sale - 2,670
---------- -----------
Total current assets 25,114 30,504
Property, plant and equipment 1,215 1,560
Other assets 373 555
---------- -----------
Total assets $ 26,702 $ 32,619
========== ===========
LIABILITIES, REDEEMABLE PREFERRED STOCK AND
STOCKHOLDERS' DEFICIT
Current liabilities:
Notes payable $ 113 $ 131
Accounts payable 3,802 1,577
Net liabilities of discontinued operations 1,413 1,042
Accrued restructuring costs 610 645
Pension and other retirement plans 864 5,501
Other accrued liabilities 7,935 9,759
---------- -----------
Total current liabilities 14,737 18,655
Long-term debt 25,725 30,275
Pension and other retirement plans 95,948 76,125
Other liabilities 1,929 1,868
Accrued restructuring costs 1,030 1,622
Net liabilities of discontinued operations 1,679 3,503
---------- -----------
Total liabilities 141,048 132,048
---------- -----------
Commitments and contingencies
Mandatorily redeemable nonconvertible preferred
stock, $1,000 liquidation value per share:
Authorized: 69,970 shares in 2005 and in 2004
Issued and outstanding - none in 2005 and in
2004 - -
Mandatorily redeemable preferred stock, $2,000
liquidation value per share:
Authorized: 21,859 shares in 2005 and in 2004
Issued and outstanding - none in 2005 and in
2004 - -
Convertible preferred stock, $2,000 liquidation
value per share:
Authorized: 10,000 shares in 2005 and in 2004
Issued and outstanding - none in 2005 and in
2004 - -
Stockholders' deficit:
Preferred stock, $1.00 par value:
Authorized: 898,171 shares in 2005
and in 2004
Issued and outstanding - none in 2005
and in 2004 - -
Common stock, $.01 par value:
Class A:
Authorized: 175,000,000 shares in 2005
and in 2004
Issued and outstanding - 3,789,773 shares
in 2005; 3,692,517 in 2004 38 37
Class C:
Authorized: 50,000,000 shares in 2005
and in 2004
Issued and outstanding - none in 2005
and in 2004 - -
Other additional capital 454,789 454,525
Accumulated deficit (456,953) (463,680)
Accumulated other comprehensive loss (112,220) (90,311)
---------- -----------
Total stockholders' deficit (114,346) (99,429)
---------- -----------
Total liabilities, redeemable preferred stock
and stockholders' deficit $ 26,702 $ 32,619
========== ===========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion