Ampex Corporation Reports Preliminary Unaudited 2002 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)--March 5, 2003 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 AMEX See: American Stock Exchange :AXC AXC Chief Aviation Antisubmarine Warfare Technician (Naval Rating) AXC Add Cross-Connect Card ) today 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 $2.8 million or $0.05 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 year ended December December: see month. 31, 2002. In 2001, the Company reported a net loss from continuing operations of $10.9 million or $0.18 per diluted share. Revenues from the Company's continuing operations declined to $37.0 million in 2002 from $46.0 million in 2001, primarily owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de a decline in royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. income as the Company transitions its licensing agreements from analog to digital technology. The Company's royalty operations contributed 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 $0.05 per diluted share in 2002 compared to $0.19 per diluted share in 2001. The Company's Data Systems subsidiary generated operating income of $0.07 per diluted share in 2002 compared to 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 $0.07 in 2001. In 2002, restructuring charges 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. accounted for $0.04 loss per diluted share, and interest expense and other financing costs, net, accounted for $0.14 loss per diluted share. In 2001, restructuring charges accounted for $0.06 loss per diluted share, and interest and other financing costs, net, accounted for $0.12 loss per diluted share. The Company's continuing operations in 2002 benefited from the non-cash reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of reserves for foreign, federal, state and deferred income taxes, totaling $6.7 million or $0.11 per diluted share. Such reserves were provided in prior years that are now either closed to audit or otherwise determined not to be required. In 2001, the Company 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: its 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. operations which resulted in a charge of $0.29 per diluted share. The Company recorded a benefit from the extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. of $0.07 per diluted share in 2002 and $0.10 per diluted share in 2001. The Company reported net income applicable to common stockholders, including continuing and discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. and the benefit from extinguishment of preferred stock, of $1.5 million or $0.02 per diluted share in 2002 compared to a net loss applicable to common stockholders of $22.4 million or $0.38 per diluted share in 2001. 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 Company's liquidity and anticipated interest expenses; the risk of significant future losses from operations; fluctuations in royalty income and quarterly results; dependence on licensed patented technology and risks of rapid technological change; the possible need to raise additional capital in order to meet the Company's obligations 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 2002 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. to be filed shortly with the SEC and its Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. for the fiscal quarters ended March 31, 2002, June June: see month. 30, 2002 and September September: see month. 30, 2002 filed with the SEC. 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 BALANCE SHEETS
(in thousands, except share and per share data)
December 31, December 31,
2002 2001
-------------------------
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 9,062 $ 8,015
Short-term investments - -
Accounts receivable (net of allowances of
$112 in 2002 and $153 in 2001) 4,064 6,002
Inventories 7,336 13,258
Other current assets 2,368 4,426
-------------------------
Total current assets 22,830 31,701
Property, plant and equipment 5,757 6,599
Other assets 752 873
-------------------------
Total assets $ 29,339 $ 39,173
=========================
LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT
Current liabilities:
Notes payable $ 457 $ 2,584
Accounts payable 962 3,665
Net liabilities of discontinued operations 1,108 1,383
Accrued restructuring costs 1,300 2,038
Other accrued liabilities 10,471 17,333
-------------------------
Total current liabilities 14,298 27,003
Long-term debt 68,218 58,790
Other liabilities 64,413 41,740
Deferred income taxes - 1,213
Accrued restructuring costs 1,700 -
Net liabilities of discontinued operations 3,024 3,874
-------------------------
Total liabilities 151,653 132,620
-------------------------
Commitments and contingencies
Mandatorily redeemable nonconvertible
preferred stock, $1,000 liquidation value:
Authorized: 69,970 shares in 2002 and in
2001
Issued and outstanding -- none in 2002 and
in 2001 - -
Mandatorily redeemable preferred stock,
$2,000 liquidation value:
Authorized: 21,859 shares in 2002 and in
2001
Issued and outstanding -- 12,877 shares in
2002; 15,025 in 2001 25,754 30,050
Convertible preferred stock, $2,000
liquidation value:
Authorized: 10,000 shares in 2002 and in
2001
Issued and outstanding -- none in 2002; 51
in 2001 - 102
Stockholders' deficit:
Preferred stock, $1.00 par value:
Authorized: 898,171 shares in 2002 and
in 2001
Issued and outstanding -- none in 2002
and in 2001 - -
Common stock, $.01 par value:
Class A:
Authorized: 175,000,000 shares in
2002 and in 2001
Issued and outstanding -- 63,412,196
shares in 2002; 61,652,996 in 2001 634 616
Class C:
Authorized: 50,000,000 shares in
2002 and in 2001
Issued and outstanding -- none in
2002 and in 2001 - -
Other additional capital 427,899 428,161
Notes receivable from stockholders - (4,642)
Accumulated deficit (512,722) (510,023)
Accumulated other comprehensive income (63,773) (37,711)
-------------------------
Total stockholders' deficit (147,962) (123,599)
-------------------------
Total liabilities, redeemable preferred
stock and stockholders' deficit $ 29,339 $ 39,173
=========================
AMPEX CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except share and per share data)
Year Ended December 31,
--------------------------------------
2002 2001 2000
------------ ------------ ------------
(unaudited)
Royalty income $ 3,969 $ 12,056 $ 12,272
Product sales 33,020 33,964 47,582
------------ ------------ ------------
Total revenue 36,989 46,020 59,854
------------ ------------ ------------
Intellectual property costs 958 646 1,052
Cost of product sales 20,201 24,451 29,101
Research, development and
engineering 2,614 5,494 6,883
Selling and administrative 11,217 14,231 15,117
Restructuring charges 2,245 3,518 -
------------ ------------ ------------
Total costs and operating
expenses 37,235 48,340 52,153
------------ ------------ ------------
Operating income (loss) (246) (2,320) 7,701
Interest expense 8,465 7,233 5,723
Amortization of debt financing
costs 460 529 350
Interest income (360) (330) (1,321)
Other (income) expense, net 236 (52) 242
------------ ------------ ------------
Income (loss) from continuing
operations before income
taxes (9,047) (9,700) 2,707
Provision for income taxes (6,242) 1,175 1,227
------------ ------------ ------------
Income (loss) from continuing
operations (2,805) (10,875) 1,480
Loss from discontinued
operations (net of taxes of nil
in 2001 and 2000) - (6,916) (31,898)
Loss on disposal of discontinued
operations (net of taxes of nil
in 2001 and 2000) - (10,338) (6,278)
------------ ------------ ------------
Net loss (2,805) (28,129) (36,696)
Benefit from extinguishment of
mandatorily redeemable
preferred stock 4,192 5,720 1,263
----------- ----------- -----------
Net income (loss) applicable
to common stockholders 1,387 (22,409) (35,433)
Other comprehensive loss, net of
tax:
Unrealized gain (loss) on
marketable securities - - (141)
Foreign currency translation
adjustments 88 (160) (186)
Minimum pension adjustment (26,261) (20,693) (17,553)
------------ ------------ ------------
Comprehensive loss $ (24,786) $ (43,262) $ (53,313)
============ ============ ============
Basic income (loss) per share:
Income (loss) per share from
continuing operations $ (0.04) $ (0.18) $ 0.03
Loss per share from
discontinued operations $ 0.00 $ (0.29) $ (0.68)
Income (loss) per share
applicable to common
stockholders $ 0.02 $ (0.38) $ (0.63)
------------ ------------ ------------
Weighted average number of
common shares outstanding 62,332,829 59,112,007 56,320,023
============ ============ ============
Diluted income (loss) per share:
Income (loss) per share from
continuing operations $ (0.04) $ (0.18) $ 0.02
Loss per share from
discontinued operations $ 0.00 $ (0.29) $ (0.53)
Income (loss) per share
applicable to common
stockholders $ 0.02 $ (0.38) $ (0.50)
------------ ------------ ------------
Weighted average number of
common shares outstanding 62,332,829 59,112,007 71,527,127
============ ============ ============
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