Ampex Corporation Reports Second Quarter 2001 Financial Results.Business Editors/High-Tech Writers 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)--Aug. 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 of $17.3 million, or $0.27 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 second quarter ended June June: see month. 30, 2001, compared to a net loss of $7.9 million, or $0.14 per diluted share, for the comparable quarter in 2000. Revenues 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 , consisting of 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, totaled $2.2 million in the second quarter of 2001 and $3.6 million in the second quarter of 2000. Income (loss) from continuing operations was $(1.0) million in the second quarter of 2001 compared to $(0.1) million in the second quarter of 2000. In July July: see month. 2001, the Company announced that its wholly-owned subsidiary, iNEXTV, would close 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 in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. and Redwood City, Calif., and would also discontinue 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: making investments in its partially-owned affiliates AENTV in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. and TV1.de in Munich Munich (my  `nĭk), Ger. München (mün`khən), city (1994 pop. 1,255,623), capital of Bavaria, S Germany, on the Isar River near the Bavarian Alps. , Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). . Included in Loss on Disposal of Discontinued
Operations Discontinued operationsDivisions of a business that have been sold or written off and that no longer are maintained by the business. in the second quarter 2001 is a charge to write down its investments in those entities completely and a reserve for the future costs of closure, principally real estate leases, aggregating $10.3 million, or $0.18 per diluted share. Loss from Discontinued Operations totaled $3.8 million in the second quarter ended June 30, 2001, consisting solely of iNEXTV's operations and $8.5 million in the second quarter ended June 30, 2000, consisting of iNEXTV's operations as well as the operations of MicroNet Technologies, Inc. the Company's former disk array business, which was 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: at the end of 2000. The Company intends to sell Ampex Data Systems Corporation, a subsidiary that manufactures high-performance Adj. 1. high-performance - modified to give superior performance; "a high-performance car" superior - of high or superior quality or performance; "superior wisdom derived from experience"; "superior math students" tape-based mass storage systems for the government and entertainment industries. However, due to market conditions, the Company does not expect to conclude a sale before the end of 2001, if at all. Data Systems is attempting to obtain an expanded credit facility to provide required working capital and to further reduce operating costs operating costs npl → gastos mpl operacionales to restore profitability. Revenues of Data Systems totaled $8.1 million in the second quarter of 2001 compared to $12.0 million in the second quarter in 2000. Data Systems reported Income (loss) on operations of $(2.2) million in the second quarter of 2001, or $0.04 per diluted share, compared with $0.7 million in the second quarter of 2000, or $0.01 per diluted share. The Company has experienced a material decline in its liquidity which has required it to restructure or discontinue certain of its businesses. The Company is actively attempting to accelerate receipt of royalty income to fund its operating costs and to satisfy its debt service obligations. The Company is seeking to raise additional liquidity by restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). debt service to allow additional time for its continuing operations to generate positive cash flow. There can be no assurance as to the Company's ability to achieve the foregoing which will be necessary for it to continue as a going concern. Ampex Corporation (www.Ampex.com), headquartered in Redwood City, Calif., 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 visual information technology. 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 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. Act 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 the Company's ability to continue as a going concern, risks of continuing losses and declining liquidity, risks of leverage, uncertainty as to the timing or terms of any sale of Data Systems 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, its Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the fiscal quarter ended March 31, 2001 and its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2001, which is expected to be filed shortly. References to loss per diluted share refers to loss applicable to common shareholders.
AMPEX CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per-share data)
June 30, December 31,
2001 2000
--------- ---------
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 6,364 $ 10,384
Short-term investments 10 5,011
Accounts receivable (net of
allowances of nil in 2001
and in 2000) 66 127
Other current assets 1,892 3,930
--------- ---------
Total current assets 8,332 19,452
Property, plant and equipment, net 1,732 5,217
Intangible assets, net - 211
Investments in affiliate - 1,678
Deferred pension asset 61 377
Other assets 929 1,173
Net assets of business held for sale 9,134 11,660
--------- ---------
Total assets $ 20,188 $ 39,768
========= =========
LIABILITIES, REDEEMABLE PREFERRED
STOCK AND STOCKHOLDERS' DEFICIT
Current liabilities:
Notes payable $ 157 $ 157
Accounts payable 57 554
Net liabilities of
discontinued operations 3,872 2,482
Other accrued liabilities 9,058 7,973
--------- ---------
Total current liabilities 13,144 11,166
Long-term debt 44,448 46,086
Other liabilities 26,072 26,637
Net liabilities of
discontinued operations 4,604 -
Deferred income taxes 1,213 1,213
--------- ---------
Total liabilities 89,481 85,102
--------- ---------
Commitments and contingencies
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 - 16,099
shares in 2001; 17,173 in 2000 32,198 34,346
Convertible preferred stock,
$2,000 liquidation value:
Authorized: 10,000 shares in
2001 and in 2000
Issued and outstanding - 767 shares
in 2001; 1,125 in 2000 1,534 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 -
59,220,996 shares in 2001;
58,075,396 in 2000 592 581
Class C:
Authorized: 50,000,000 shares in
2001 and in 2000
Issued and outstanding - none in
2001 and in 2000 - -
Other additional capital 424,441 421,578
Notes receivable from stockholders (4,642) (4,642)
Accumulated deficit (505,863) (481,894)
Accumulated other comprehensive loss (17,553) (17,553)
--------- ---------
Total stockholders' deficit (103,025) (81,930)
--------- ---------
Total liabilities, redeemable
preferred stock and
stockholders' deficit $ 20,188 $ 39,768
========= =========
AMPEX CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except share and per-share data)
For the three months For the six months
ended ended
June 30, June 30,
------------------- -------------------
2001 2000 2001 2000
-------- -------- -------- --------
(unaudited)
Royalty income $ 2,181 $ 3,587 $ 4,517 $ 6,706
-------- -------- -------- --------
Intellectual property costs 213 238 386 608
Selling and administrative 1,412 1,661 3,333 2,661
-------- -------- -------- --------
Total costs and
operating expenses 1,625 1,899 3,719 3,269
-------- -------- -------- --------
Operating income 556 1,688 798 3,437
Interest expense 1,359 1,359 2,690 2,714
Amortization of debt
financing costs 87 87 175 175
Interest income (74) (204) (200) (729)
Other (income) expense, net (49) 223 (136) 222
-------- -------- -------- --------
Income (loss) from
continuing operations
before income taxes (767) 223 (1,731) 1,055
Provision for income taxes 219 365 466 688
-------- -------- -------- --------
Income (loss) from
continuing operations (986) (142) (2,197) 367
Loss on disposal of
discontinued operations
(net of taxes of none in
2001 and 2000) (10,338) - (10,338) -
Loss from discontinued
operations (net of taxes of
none in 2001 and 2000) (3,759) (8,469) (7,294) (16,465)
Income (loss) of business
held for sale (net of taxes
of none in 2001 and 2000) (2,230) 693 (4,140) 1,241
-------- -------- -------- --------
Net loss (17,313) (7,918) (23,969) (14,857)
Benefit from extinguishment
of mandatorily redeemable
preferred stock 1,505 - 2,337 -
-------- -------- -------- --------
Net loss applicable to
common stockholders (15,808) (7,918) (21,632) (14,857)
Other comprehensive loss,
net of tax:
Unrealized gain (loss)
on marketable securities - (11) - (141)
Foreign currency
translation adjustments - 1 - 11
-------- -------- -------- --------
Comprehensive loss $(15,808) $ (7,928) $(21,632) $(14,987)
======== ======== ======== ========
Basic and diluted loss
per share:
Income (loss) per share
from continuing
operations $ (0.02) $ 0.00 $ (0.04) $ 0.01
Loss per share from
discontinued operations $ (0.28) $ (0.14) $ (0.37) $ (0.21)
Loss per share applicable
to common stockholders $ (0.27) $ (0.14) $ (0.37) $ (0.20)
-------- -------- -------- --------
Weighted average number
of common shares
outstanding 58,512,864 55,916,857 58,296,491 72,762,923
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