Ampex Corporation to Discontinue Internet Video Operations.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)--July 20, 2001 Ampex Corporation (Amex:AXC AXC Chief Aviation Antisubmarine Warfare Technician (Naval Rating) AXC Add Cross-Connect Card ) today announced that it is discontinuing the operations of iNEXTV, its Internet video subsidiary. The Company will close iNEXTV's 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. immediately and will terminate the development of Internet video technology in Redwood City. It will also discontinue making investments in its partially-owned affiliates, AENTV in Los Angeles and TV1.de in Munich, Germany and will write off its investments in those entities completely. In connection with the actions disclosed above, Ampex expects to record a second quarter charge of approximately $ 4.6 million to write down goodwill and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. and to record a charge of approximately $ 5.5 million to reflect other costs of closure, principally real estate leases. Ampex attributed the decision to the difficulty in obtaining additional funding for iNEXTV due to adverse capital market conditions for Internet-based companies. Ampex Corporation, www.Ampex.com, headquartered in Redwood City, Calif., is a leading innovator and licensor of visual information technology. This news release contains forward-looking statements 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 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 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, 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. |
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