Ampex Corporation Reports Third Quarter 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.--(BUSINESS WIRE)--Nov. 9, 1999-- 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 today a net loss of approximately $7.5 million and a loss 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 of $0.14 for the quarter ended September 30, 1999. Expenses incurred to expand the Company's newly created 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. subsidiary, iNEXTV Corporation, ("iNEXTV" - www.inextv.com) accounted for $0.13 per diluted share. In the quarter ended September 30, 1998, the Company reported net income of $2.0 million and $0.03 per share. The Company's traditional business, comprised of Ampex Data Systems Corporation ("Data Systems" - www.ampexdata.com) and royalties from technology licensing earned operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $0.03 per diluted share for the quarter ended September 30, 1999. MicroNet Technology, Inc., ("MicroNet" - www.micronet.com) accounted for 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 $0.02 per diluted share which was anticipated as part of the product transition, initiated when the business was acquired in June 1998 and which the Company expects to be substantially complete by the end of 1999. Earnings per diluted share in the third quarter of the prior year benefited from an income tax credit of $0.09, resulting from the liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy of the Company's Italian subsidiary. "We are making rapid progress towards the introduction of major new Internet See Web 2.0 and Internet2. video content and technology this quarter," said Edward J. Bramson, Chairman of Ampex Corporation. "We are also pleased that 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. from our non-Internet business improved in comparison to the third quarter of last year." iNEXTV was incorporated in May 1999 to assemble a network of websites, each featuring made-for-the-Internet video programming. Ampex has also formed 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 Technology Group (ITG ITG In the Groove ITG Investment Technology Group ITG Information Technology Group ITG International Trumpet Guild ITG Instituut Voor Tropische Geneeskunde (Dutch: Institute of Tropical Medicine; Antwerp, Belgium) ) to develop improved Internet video technology that will initially be used by iNEXTV and its affiliates. Costs incurred by ITG and expenditures by iNEXTV and its affiliates for the design and construction of websites, production facilities, hardware and software and the creation of Internet video content have been funded out of cash and short term investments, which declined by $3.3 million in the third quarter to $48.7 million at September 30, 1999. The Company anticipates that such startup costs will decline in the first quarter of 2000, but that expenditures for video content production and marketing and advertising will increase materially as the network expands. The majority of the sales increase of $1.4 million (9%) in the third quarter of 1999 compared to the third quarter of 1998 was attributable to the inclusion of revenue from Internet video affiliates. iNEXTV is investing in significant new programming, and launching two additional new websites, exbtv.com and iStyleTV.com, which are scheduled to be online in the fourth quarter of 1999. The Company expects to begin to generate advertising and e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. revenue from these sites commencing in the first quarter of 2000. Increased sales of Data Systems' instrumentation instrumentation, in music: see orchestra and orchestration. instrumentation In technology, the development and use of precise measuring, analysis, and control equipment. and mass data storage products to government customers were largely offset by a decline in television aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. sales. The Company anticipates that continuing government spending Government spending or government expenditure consists of government purchases, which can be financed by seigniorage, taxes, or government borrowing. It is considered to be one of the major components of gross domestic product. constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. may negatively affect Data Systems' product sales in future periods. Sales of high-performance disk array products introduced by MicroNet in 1999 are anticipated to grow as a result of continuing investments in these products. Ampex expects that the growth of its Internet video operations, which may include the exercise of options to acquire greater ownership interests in certain of its Internet affiliates, will require it to invest substantial sums in future periods. The Company may seek additional financing to facilitate the expansion of its Internet businesses depending on market conditions and other factors. The Company anticipates that while its Internet video revenues may grow, its Internet businesses will continue to 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. material losses in future periods. 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 developer and netcaster of video for the Internet. The iNEXTV network of affiliated video websites currently includes: TV onthe WEB, a leading Internet video provider; Alternative Entertainment Network, one of the largest on-demand streaming video A one-way video transmission over a data network. It is widely used on the Web as well as company networks to play video clips and video broadcasts. Computers in home networks stream video to digital media hubs connected to a home theater. sites, and 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. , one of Europe's top webcasters. iNEXTV produces original Internet video programming in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , 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. , Reston, VA, Washington, DC, and Munich, Germany and has announced that it will expand its European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. operations to include Berlin next year. iNEXTV is developing Executive Branch TV, www.exbtv.com, Washington, DC, which will provide coverage of executive agency and White House activities over the Internet and a premier channel, iSTYLETV, www.istyle.com, both of which are scheduled for launch during the fourth quarter. Ampex's two other wholly-owned subsidiaries, Ampex Data Systems Corporation and MicroNet Technology, Inc., provide high-performance digital storage solutions for industry, entertainment and government applications 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 risks 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 affecting the Company's internet strategy and other risks mentioned in the Company's 1998 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 31,1999, its Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 1999, and its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 1999, which is expected to be filed shortly. References to loss per diluted share in the nine months ended September 30, l999 refer to loss available to common stockholders. -0-
AMPEX CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except share per share data)
(unaudited)
September 30, December 31,
1999 1998
ASSETS
Current assets:
Cash and cash equivalents $ 15,253 $ 23,357
Short-term investments 33,440 39,222
Accounts receivable
(net of allowances of
$1,172 in 1999 and
$1,360 in 1998) 9,615 11,789
Inventories 19,385 19,766
Other current assets 5,319 2,510
Total current assets 83,012 96,644
Property, plant and equipment, net 12,032 10,546
Intangible assets, net 10,587 5,461
Investment in unconsolidated companies 1,985 --
Other assets 2,536 3,350
Total assets $ 110,152 $ 116,001
LIABILITIES, REDEEMABLE PREFERRED
STOCK AND STOCKHOLDERS' DEFICIT
Current liabilities:
Notes payable $ 1,294 $ 180
Accounts payable 7,167 6,470
Income taxes payable 73 12
Accrued restructuring costs 5,218 2,135
Other accrued liabilities 18,137 17,889
Total current liabilities 31,889 26,686
Long-term debt 45,697 43,380
Other liabilities 46,365 51,470
Deferred income taxes 1,213 1,213
Accrued restructuring costs 200 688
Total liabilities 125,364 123,437
Commitments and contingencies
Mandatorily redeemable junior
preferred stock -- --
Mandatorily redeemable
nonconvertible preferred stock,
$1,000 liquidation value:
Authorized: 69,970 shares
in 1999 and in 1998
Issued and outstanding --
none in 1999 and in 1998 -- --
Mandatorily redeemable
preferred stock, $2,000
liquidation value:
Authorized: 21,859 shares
in 1999 and in 1998
Issued and outstanding --
20,071 shares in 1999;
21,859 in 1998 40,142 43,718
Convertible preferred stock,
$2,000 liquidation value:
Authorized: 10,000 shares
in 1999 and in 1998
Issued and outstanding --
1,885 shares in 1999;
10,000 shares in 1998 3,770 20,000
Stockholders' deficit:
Preferred stock, $1.00 par value:
Authorized: 898,171 shares
in 1999 and in 1998
Issued and outstanding --
none in 1999 and in 1998 -- --
Common stock, $.01 par value:
Class A:
Authorized: 125,000,000
shares in 1999 and in 1998
Issued and outstanding --
55,347,631 shares in 1999;
49,782,547 shares in 1998 553 498
Class C:
Authorized: 50,000,000
shares in 1999 and in 1998
Issued and outstanding --
none in 1999 and in 1998 -- --
Other additional capital 413,861 391,849
Notes receivable from stockholder (4,818) (4,818)
Accumulated deficit (440,008) (429,630)
Accumulated other
comprehensive income (28,712) (29,053)
Total stockholders' deficit (59,124) (71,154)
Total liabilities and
stockholders' deficit $ 110,152 $ 116,001
AMPEX CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(in thousands, except share and per share data)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
1999 1998 1999 1998
Net sales $ 17,298 $ 16,001 $ 48,838 $ 48,021
Cost of sales 11,853 10,624 32,331 28,223
-------- -------- -------- --------
Gross profit 5,445 5,377 16,507 19,798
Selling and administrative 11,423 6,864 24,830 16,972
Research, development and
engineering 2,358 2,899 7,197 9,060
Royalty income (2,982) (2,234) (16,104) (5,738)
Amortization of goodwill 870 303 1,646 303
Restructuring charges -- (274) 4,583 2,526
Acquisition of in-process
research and development -- -- -- 929
-------- -------- -------- --------
Operating loss (6,224) (2,181) (5,645) (4,254)
Interest expense 1,421 1,393 4,198 2,968
Amortization of debt
financing costs 112 133 286 230
Interest income (659) (836) (2,073) (2,572)
Other (income) expense, net 48 4 693 14
-------- -------- -------- --------
Loss before income taxes (7,146) (2,875) (8,749) (4,894)
Provision for (benefit of)
income taxes 304 (4,944) 1,629 (14,778)
-------- -------- -------- --------
Net income (loss) (7,450) 2,069 (10,378) 9,884
Benefit from extinguishment
of mandatorily redeemable
preferred stock -- -- 374 --
-------- -------- -------- --------
Net income (loss)
available for common
stockholders (7,450) 2,069 (10,004) 9,884
Other comprehensive income
(loss), net of tax:
Unrealized gain on
marketable securities (143) -- 124 --
Foreign currency
translation adjustments 150 (76) 217 (81)
-------- -------- -------- --------
Comprehensive income
(loss) $ (7,443) $ 1,993 $ (9,663) $ 9,803
======== ======== ======== ========
Basic income (loss) per
share:
Income (loss) per share $ (0.14) $ 0.04 $ (0.19) $ 0.21
======== ======== ======== ========
Weighted average number
of common shares
outstanding 54,152,115 49,062,547 52,627,766 47,075,450
========== ========== ========== ==========
Diluted income (loss) per
share:
Income (loss) per share $ (0.14) $ 0.03 $ (0.19) $ 0.19
======== ======== ======== ========
Weighted average number
of common shares
outstanding 54,152,115 59,782,547 52,627,766 50,976,537
========== ========== ========== ==========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion