Ampex Corporation Reports First Quarter 2001 Financial Results.Business Editors 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.--(BUSINESS WIRE)--May 14, 2001 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 (Amex:AXC AXC Chief Aviation Antisubmarine Warfare Technician (Naval Rating) AXC Add Cross-Connect Card ) reported a net loss 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 $4.7 million or $0.08 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 for the first quarter of 2001. The Company's Internet video Video material obtained from the Internet. It may refer to streaming video from real time broadcasts, streaming archival material or downloading video files for watching later, all of which are viewed on the computer. business contributed 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 approximately $0.06 per diluted share including its equity investment in TV1 Internet Television Internet television (or Internet TV) is television distributed via the Internet. Overview In the past, television was only distributed by cable, satellite, or terrestrial systems. . In the first quarter of 2000, the Company reported a net loss from continuing operations of $6.7 million or $0.12 per diluted share, of which the Company's Internet video businesses contributed a loss of $0.13 per diluted share. The Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the operating loss for the first quarter in 2000 included $0.04 per diluted share from TV onthe WEB, Inc, a subsidiary of the Company whose operations were discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: in the fourth quarter of 2000. Revenues from the Company's continuing operations decreased by 33% in the first quarter of 2001, largely reflecting a decline in royalty income from non-Internet technology licensing during the period. Substantially all Internet revenues in the quarter ended March 31, 2000, consisted of webcasting and video production revenues of TV onthe WEB. In September September: see month. 2000, the Company wrote off its investment in TV onthe WEB and ceased including its revenues and operating results in the 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 after the third quarter of 2000. In the first quarter of 2001, the Company increased its equity interest in its German affiliate, TV1 Internet Television, to 35% and began to account for this investment on the equity method of accounting. As a result, the Company's loss from continuing operations includes a charge of $0.01 per share relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc TV1, substantially all of which represents amortization of goodwill. The financial results of prior periods have been restated to recognize the Company's equity interest in TV1's net operating loss in such periods as a single line item in the Consolidated Statement of Operations See Income statement. . Revenues of TV1, totaling $0.3 million and $0.2 million for the three months ended March 31, 2001 and 2000, respectively, are not included in Internet revenues for such periods. iNEXTV's strategy is to increase advertising and sponsorship revenues by syndicating its content and that of others for distribution to frequently visited portals and destination websites. The Company shares advertising revenue with its partners and also offers various services to customers who wish to add video content to their own websites. iNEXTV has entered into syndication See syndication format. agreements with Microsoft's WindowsMedia, Yahoo!, Qwest's Online Avenue, Juno Juno, in astronomy Juno (j  `nō), in astronomy, 3d asteroid to be discovered. It was found in 1804 by C. Harding. It has a diameter of c.120 mi (190 km). ,
TravelNow, Autobytel and others. These partners' sites have
reported aggregate unique monthly visitors in excess of 100 million. As
the number of video streams generated by its partners increases, iNEXTV
expects to gain significant cost advantages from Ampex's encoding See encode. technology, which is used in substantially all iNEXTV's content.Ampex Data Systems Corporation, a subsidiary which the Company intends to sell and which is accounted for as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. , reported a loss of $0.03 per diluted share in the first quarter of 2001, compared to a profit of $0.01 per diluted share in the prior year period. The Company is continuing to offer Data Systems for sale and would use the proceeds of sale to fund the activities and operating losses of iNEXTV and to retire debt. However, due to economic and market conditions, a successful sale of Data Systems is not expected before late 2001 or 2002, if at all. Accordingly, the Company is pursuing alternative financing, which the Company will require in order to fund operations for the balance of 2001 and to pay its debt service and other obligations. Subsequent to the end of the first quarter, the Company has taken steps to reduce headcount and overhead expenses of Data Systems and the Company will record a restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. in the second quarter's financial statements. The Company's cash and investment balances at March 31, 2001 totaled $11.9 million. In November 2000, the Company issued Senior Discount Notes providing net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $8 million. Ampex currently is negotiating a sale and leaseback sale and leaseback The sale of a fixed asset that is then leased by the former owner from the new owner. A sale and leaseback permits a firm to withdraw its equity in an asset without giving up use of the asset. Also called leaseback. of certain real estate and intends to apply the proceeds from the sale to repay the Notes. The Company and holders of the Notes have reached an agreement in principle to extend the Note maturity date from May 31, 2001 to August 31, 2001 to facilitate completion of the sale and leaseback transaction. 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. of technologies for the visual information age. Its iNEXTV subsidiary is the premier producer, aggregator and syndicator See syndication format. of video programming. The Company's rich media content covers numerous lifestyle "infotainment (INFOrmation enterTAINMENT) Refers to all the information and entertainment services delivered to the home, which are essentially telephone, TV and Internet access. " topics as well as entertainment and current affairs current affairs npl → (noticias fpl de) actualidad f current affairs current npl → (questions fpl d')actualité f and is syndicated to portals, destination and broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). web sites. In addition, Ampex operates the Internet Technology Group to develop enhanced technology for distributing Internet video. This news release contains 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 1995 that involve risk and uncertainties and unforeseen circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or that could cause actual results to differ materially from those currently anticipated. Potential risks and uncertainties include, without limitation, risks of continuing losses from future operations, risks of declining liquidity, risks affecting the Company's Internet strategy and ability to sell advertising, risks that the Company will be unable to sell Data Systems, risks regarding its ability to continue as a going concern, and other risks mentioned in the Company's 2000 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. filed with the SEC, and its Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the fiscal quarter ended March 31, 2001, expected to be filed shortly. References to a net loss and loss per share refer to loss applicable to common stockholders.
AMPEX CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except share and per share data)
For the three months ended
March 31,
2001 2000
-------------------------------
(unaudited)
Royalty income $ 2,336 $ 3,119
Internet revenue 130 575
------------ ------------
Total revenue 2,466 3,694
------------ ------------
Intellectual property
costs 173 370
Internet video programming
and site development 1,565 3,249
Research, development
and engineering 68 119
Selling and administrative 3,333 4,642
Amortization of goodwill 127 574
------------ ------------
Total costs and
operating expenses 5,266 8,954
------------ ------------
Operating loss (2,800) (5,260)
Equity in net loss
of affiliate 497 226
Interest expense 1,331 1,364
Amortization of debt
financing costs 88 88
Interest income (130) (547)
Other (income) expense, net (87) (1)
------------ ------------
Loss from continuing
operations before
income taxes (4,499) (6,390)
Provision for income taxes 247 323
------------ ------------
Loss from continuing operations (4,746) (6,713)
Loss from discontinued
operations (net of taxes of
nil in 2000) -- (774)
Income (loss) of business
held for sale (net of taxes of
none in 2001 and 2000) (1,910) 548
------------ ------------
Net loss (6,656) (6,939)
Benefit from extinguishment of
mandatorily redeemable
preferred stock 832 --
------------ ------------
Net loss applicable to
common stockholders (5,824) (6,939)
Other comprehensive
loss, net of tax:
Unrealized gain (loss)
on marketable securities -- (130)
Foreign currency translation
adjustments -- 10
------------ ------------
Comprehensive loss $ (5,824) $ (7,059)
============ ============
Basic and diluted
loss per share :
Loss per share from
continuing operations $ (0.08) $ (0.12)
Loss per share from
discontinued operations $ (0.03) $ 0.00
Loss per share applicable
to common stockholders $ (0.10) $ (0.12)
------------ ------------
Weighted average number
of common shares
outstanding 58,080,117 55,518,445
============ ============
AMPEX CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
March 31, December 31,
2001 2000
--------- ---------
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 11,889 $ 10,384
Short-term investments 14 5,011
Accounts receivable
(net of allowances of nil
in 2001 and in 2000) 129 127
Other current assets 1,262 3,930
--------- ---------
Total current assets 13,294 19,452
Property, plant and
equipment, net 4,700 5,217
Intangible assets, net 84 211
Investments in affiliate 2,361 1,678
Deferred pension asset 283 377
Other assets 1,085 1,173
Net assets of business
held for sale 11,331 11,660
--------- ---------
Total assets $ 33,138 $ 39,768
========= =========
LIABILITIES, REDEEMABLE PREFERRED
STOCK AND STOCKHOLDERS' DEFICIT
Current liabilities:
Notes payable $ 157 $ 157
Accounts payable 302 554
Accrued restructuring costs 1,362 2,482
Other accrued liabilities 9,158 7,973
--------- ---------
Total current liabilities 10,979 11,166
Long-term debt 45,922 46,086
Other liabilities 27,004 26,637
Deferred income taxes 1,213 1,213
--------- ---------
Total liabilities 85,118 85,102
--------- ---------
Mandatorily redeemable nonconvertible
preferred stock, $1,000 liquidation value:
Authorized: 69,970 shares in 2001 and
in 2000
Issued and outstanding -
none in 2001 and in 2000 -- --
Mandatorily redeemable preferred stock,
$2,000 liquidation value:
Authorized: 21,859 shares in 2001 and
in 2000
Issued and outstanding - 16,636 shares
in 2001; 17,173 in 2000 33,272 34,346
Convertible preferred stock, $2,000
liquidation value:
Authorized: 10,000 shares in 2001 and
in 2000
Issued and outstanding - 1,125 shares
in 2001 and in 2000 2,250 2,250
Stockholders' deficit:
Preferred stock, $1.00 par value:
Authorized: 898,171 shares
in 2001 and in 2000
Issued and outstanding
- none in 2001 and in 2000 -- --
Common stock, $.01 par value:
Class A:
Authorized: 175,000,000 shares
in 2001 and in 2000
Issued and outstanding - 58,504,996
shares in 2001; 58,075,396 in 2000 585 581
Class C:
Authorized: 50,000,000 shares
in 2001 and in 2000
Issued and outstanding - none in
2001 and in 2000 -- --
Other additional capital 422,658 421,578
Notes receivable from stockholders (4,642) (4,642)
Accumulated deficit (488,550) (481,894)
Accumulated other comprehensive loss (17,553) (17,553)
--------- ---------
Total stockholders' deficit (87,502) (81,930)
--------- ---------
Total liabilities, redeemable
preferred stock and stockholders' deficit $ 33,138 $ 39,768
========= =========
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion