Ampex Corporation Reports Third Quarter Net Income of $3.4 Million and Earnings of $0.09 Per Share.Corporation (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). : AMPX) reported today net income of approximately $3.4 million for the third quarter of l995, resulting in both primary and fully diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $0.09. In the third quarter of l994, the Company reported net income of $3.7 million and earnings per share of $0.07. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight in the third quarter of l995 were $23.4 million, compared to $30.4 million in the third quarter of l994. The increase in earnings per share was principally attributable to the redemption of convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". in February February: see month. 1995, on which the Company previously accreted dividends. During the third quarter of 1995, the Company recorded a gain of $1.1 million as a result of transactions relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc two facilities that it had vacated in connection with its 1993 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). of operations. In the third quarter of 1994, the Company also recorded a gain of $0.9 million from the sale of assets of 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. . Gross margin in the third quarter 1995 increased to 48.0% compared to 41.5% in the third quarter of 1994 and overall 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. declined due to a reduction in RD&E expenses. Royalty income in the third quarter of 1995 declined by $0.2 million compared to the prior year as increases in royalties from 8mm format consumer camcorders were more than offset by a decline in royalties from VHS (Video Home System) A half-inch, analog videocassette recorder (VCR) format introduced by JVC in 1976 to compete with Sony's Betamax, introduced a year earlier. format consumer video recorders See DVR, DVD-R and DVD drives. . During the third quarter of 1995, the Company initiated a lawsuit lawsuit: see procedure; tort. against a major foreign consumer electronics company claiming 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 Ampex patents primarily in the sale of VHS video recorders. Commenting on the third quarter results, Edward Bramson, Chairman, said, "In anticipation of a seasonal decline in third quarter sales, we took extra steps to control expenses during the quarter. Actual sales in the third quarter were higher than expected and this combination of factors resulted in better than expected margins and net income. The decline in revenues compared to the prior year was primarily attributable to the discontinuation dis·con·tin·u·a·tion n. A cessation; a discontinuance. Noun 1. discontinuation - the act of discontinuing or breaking off; an interruption (temporary or permanent) discontinuance of certain products." For the first nine months of l995, the Company generated net income of $14.9 million, compared to $3.1 million for the first nine months of l994. Nine-month primary and fully diluted earnings per share were $0.41 and $0.35 respectively, compared to a loss of $0.03 per share for the comparable 1994 period after accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the 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. dividends. Net sales were $71.6 million for the first nine months of l995, compared to $102.2 million for the first nine months of l994. During the first nine months of l995, the Company received royalty income of $13.6 million, which included non-recurring settlements of $10.5 million relating to prior periods, compared with total royalty receipts of $2.2 million in the comparable l994 period. Ampex Corporation 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. in the fields of magnetic recording, image processing image processing Set of computational techniques for analyzing, enhancing, compressing, and reconstructing images. Its main components are importing, in which an image is captured through scanning or digital photography; analysis and manipulation of the image, accomplished and high-performance digital storage. Ampex is currently focusing its technology on the emerging market for mass data storage in the visual information age. During its 50-year history of innovation, Ampex has been granted thousands of patents and numerous awards for technical achievement. Headquartered in 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's customers today include such leading organizations as Boeing, Eastman Kodak, Mobil Oil, Time Warner Time Warner Inc. (NYSE: TWX), formerly known as AOL Time Warner, is the world's largest media and entertainment conglomerate headquartered in New York City, with major operations in film, television, publishing, Internet service and telecommunications. and NASA NASA: see National Aeronautics and Space Administration. NASA in full National Aeronautics and Space Administration Independent U.S. . -0-
Ampex Corporation
Consolidated Statements of Operations
(in thousands, except share data)
(unaudited)
Three months ended Nine months ended
September 30, September 30,
1995 1994 1995 1994
Net sales $23,431 $30,411 $71,589 $102,159 Cost of sales 12,192 17,788 39,281 62,878 Gross profit 11,239 12,623 32,308 39,281 Selling and administrative 5,553 5,456 16,741 19,316 Research, development and engineering 3,504 4,460 11,670 14,508 Royalty income (928) (1,096) (13,587) (2,198) Restructuring charges (credits) (1,087) -- (1,087) -- Operating income 4,197 3,803 18,571 7,655 Interest expense 957 925 2,835 7,438 Amortization of debt financing costs 23 36 103 196 Interest income (264) (184) (854) (510) Other (income) expense, net 10 (880) 58 (3,431) Income before income taxes 3,471 3,906 16,429 3,962 Provision for income taxes 110 157 1,483 855 Net income $3,361 $3,749 $14,946 $3,107 Primary income (loss) per share: Income (loss) per share $0.09 $0.07 $0.41 $(0.03) Weighted average number of common shares outstanding 36,971,923 23,571,861 34,376,239 20,555,281 Fully diluted income (loss) per share: Income (loss) per share $0.09 $0.07 $0.35 $(0.03) Weighted average number of common shares outstanding 45,665,048 23,571,861 47,786,546 20,555,281
Ampex Corporation
Consolidated Balance Sheets
(in thousands, except share data)
(unaudited)
September 30, December 31,
1995 1994
ASSETS
Current assets:
Cash and cash equivalents $13,806 $12,058
Short-term investments 6,984 7,850
Accounts receivable (net of allowances
of $3,347 and $5,404) 16,094 12,238
Inventories 12,086 10,053
Other current assets 2,898 3,020
Total current assets 51,868 45,219
Property, plant and equipment 37,959 40,694
Other assets 940 1,546
Total assets $90,767 $87,459
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Notes payable $2,411 $3,452
Accounts payable 8,954 6,825
Income taxes payable 4,068 4,075
Accrued restructuring costs 2,573 6,566
Other accrued liabilities 24,599 28,261
Total current liabilities 42,605 49,179
Long-term debt 31,768 30,805
Other liabilities 52,286 56,754
Deferred income taxes 1,932 1,981
Accrued restructuring costs 10,357 11,973
Net liabilities of business held for
disposition 48,030 48,030
Total liabilities 186,978 198,722
Redeemable convertible preferred stock, $1,000 liquidation value: Authorized: none 1995; 87,192 shares 1994 Issued and outstanding - none 1995; 87,192 shares 1994 -- 83,977 Redeemable nonconvertible preferred stock, $1,000 liquidation value: Authorized: 69,970 shares 1995; none 1994 Issued and outstanding - 69,970 shares 1995; none 1994 69,970 --
Stockholders' deficit:
Preferred stock, $1.00 par value:
Authorized: 842,838 shares 1995;
912,808 shares 1994
Issued and outstanding - none 1995
and 1994 -- --
Common stock, $.01 par value:
Class A:
Authorized: 125,000,000 shares 1995
and 1994
Issued and outstanding - 29,306,512 shares
1995; 20,551,944 shares 1994 293 206
Class B:
Authorized: none 1995; 20,000,000
shares 1994
Issued and outstanding - none 1995 and
1994 -- --
Class C:
Authorized: 50,000,000 shares 1995
and 1994
Issued and outstanding - 5,104,757 shares
1995; 5,927 shares 1994 51 --
Other additional capital 352,062 337,950
Accumulated deficit (515,959) (530,905)
Cumulative translation adjustments 455 592
Minimum pension liability adjustment (3,083) (3,083)
Total stockholders' deficit (166,181) (195,240)
Total liabilities and stockholders'
deficit $90,767 $87,459
CONTACT: Ampex Corporation, Redwood City Karen D. Schweikher, 415/367-4111 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion