B.V.R. Technologies reports results for the third quarter of 1995.TEL AVIV Tel Aviv (tĕl əvēv`), city (1994 pop. 355,200), W central Israel, on the Mediterranean Sea. Oficially named Tel Aviv–Jaffa, it is Israel's commercial, financial, communications, and cultural center and the core of its largest , Israel--(BUSINESS WIRE)--Dec. 27, 1995--B.V.R. Technologies Ltd. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :BVRTF) today reported the results of its operations for the nine months ended Sept. 30, 1995 (All dollar amounts are approximate). Total sales for the nine months ended Sept. 30, 1995, amounted to $7,374,000, compared to $12,021,000 for the first nine months of 1994 ($2,119,000 for the three months ended Sept. 30, 1995, compared to $5,569,000 for the three months ended Sept. 30, 1994). Revenues from long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. contracts are charged to income using the percentage-of-completion method percentage-of-completion method A method of recognizing revenues and costs from a long-term project in relation to the percentage completed during the course of the project. . This method creates significant changes in periodic rate of sales. For the period ended Dec. 31, 1995, the company expects lower sales than were reported for the same period in 1994. Gross profit for the above period amounted to $1,321,000, representing 18% of sales, compared to $1,640,000, representing 14% of sales, for the first nine months of 1994 ($661,000 for the three months ended Sept. 30, 1995, compared to $626,000 for the three months ended Sept. 30, 1994). The growth in the gross margin is part of the trend of the company to minimize the cost of sales by reselling products, which until now "absorbed" the higher costs of research and development. The company expects these factors to continue to influence the financial results of BVR BVR Beyond Visual Range BVR Business Valuation Review (journal) BVR Biliverdin Reductase BVR Bureau of Vocational Rehabilitation BVR Bulletin de Versement (French) at least through the end of 1995. The company had 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. for the period of $3,849,000, compared to an operating loss of $1,771,000 during the corresponding period in 1994 ($1,038,000 for the three months ended Sept. 30, 1995, compared to $756,000 for the three months ended Sept. 30, 1994). The increase in operating losses resulted from an increase in research and development expenses related to the completion of certain projects, and further expenses related to the preparation of the company's production line for its main product (the EHUD Ehud (ē`həd). In the Bible, judge of Israel. He delivered Israel from Moab. Ehud freed Israelites from Moabites by murdering king. [O.T. system), for which the company received new orders during the third quarter and hopes to receive new orders over the coming 12 months. Also contributing to the operating loss has been an increase in marketing expenses and general and administrative expenses, as well as the contribution (amounting to a total of $1,484,000) made by the consolidation of E.V.R., Entertainment Application of Virtual Reality (1994) Ltd., and two BVR subsidiaries, Real-Time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. Synthesized syn·the·sized adj. 1. Relating to or being an instrument whose sound is modified or augmented by a synthesizer. 2. Relating to or being compositions or a composition performed on synthesizers or synthesized instruments. Entertainment Technology Ltd. ("RT-SET") and Netgame Ltd. ("Netgame"), whose activities until now have focused on developing and marketing their products, which have not to date achieved the sales stage. The net loss for the first nine months of 1995 amounted to $5,068,000, compared to a net loss of $1,079,000 for the first nine months of 1994 ($1,239,000 for the three months ended Sept. 30, 1995, compared to $1,154,000 for the three months ended Sept. 30, 1994). In computing computing - computer the loss for the period, the company's share in the losses of Nexus Telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. Systems Ltd. ("Nexus") (an affiliated company, in which the company had a 32.96% interest in the third quarter of 1995), totaling $1,461,000, was taken into account (compared to a loss of $1,390,000 for the nine months ended Sept. 30, 1994 and other income amounting to $2,036,000 from the public offering of Nexus during June, 1994). Affiliate In July, 1995, Nexus effected a private placement of 21.5 units, each consisting of $100,000 of convertible debentures Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. redeemable Redeemable Eligible for redemption under the terms of an indenture. in the year 2000, and 25,000 Series C warrants. The debentures are linked to the Israeli Consumer Price Index and will bear interest at 5% per annum Per annum Yearly. . The debentures are convertible through July 2000, at a conversion price of US$3.5 of debentures per share. The warrants are excerisable through July 2000, at an excerise price of US$3.5 per share in the first two years and US$4.5 per share for the remaining period. The company has purchased 20 units in this placement. BVR's share of this investment was financed by a bank loan. In addition, the company consented to guarantee a line of bank credit totaling $1,000,000 to be available to Nexus in consideration of 222,222 Series C warrants of Nexus. The transactions have been approved by the shareholders of both the company and Nexus. In August 1995, Nexus effected a private placement of shares to one of its customers. The company's shareholding in Nexus was reduced by 0.64% from 33.6%, and the company included other income of $167,000. In November 1995, Nexus effected a private placement of securities. Nexus raised $6.8 million in gross proceeds (before commissions and expenses) through the sale of 1.6 million units at a price of $4.25 per unit. Each unit consists of one ordinary share and one warrant exercisable through November 1997, at an exercise price of $6.00 per share. The proceeds will be kept in an escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. account and will be released to Nexus after registration of the units, as required by the Securities Act of 1933. Registration is expected to be completed within 75 days of filing, which will be by the end of February, 1996. As a consequence of this private placement, BVR's shareholding in Nexus was reduced by approximately 6%, and the company thereby will realize a gain of $1,724,000 in the fourth quarter. EVR EVR Enhanced Vapor Recovery EVR Electronic Video Recording EVR Equine Viral Rhinopneumonitis EVR Extravehicular Robotics EVR Expanded Virtual Register EVR Exudative Vitreoretinopathy, Familial, Autosomal Dominant EVR Eläinten Vapautus Rintama , NETGAME and RT-SET The results for the period also take into consideration the financial results of EVR. EVR, through RT-SET and Netgame, develops businesses in the entertainment industry, utilizing various new applications of BVR's proprietary simulation software Simulation software is based on the process of imitating a real phenomenon with a set of mathematical formulas. It is, essentially, a program that allows the user to observe an operation through simulation without actually running the program. . BVR's holding in EVR for the end of the reporting period is 87.5% (see table). Since its formation, EVR has invested in two companies, Netgame Ltd., of which EVR holds 60% of the outstanding shares, and Real-Time Synthesized Entertainment Technology Ltd. ("RT-SET"), of which EVR holds 96% of the outstanding shares. Netgame is developing hardware and software that will facilitate various interactive applications over the cable network. Netgame recently received a certificate from the Israeli Ministry of Communications to operate its systems in Israel. During the reported period, Netgame commenced site testing for its system under development with Cable Vision, one of the largest Multiple System Operators (MSO (1) (Multiple System Operator) Typically refers to a cable TV organization that owns more than one cable system, but it may refer to an operator of only one system. ) in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Netgame is also currently negotiating potential cooperation agreements with several major US MSOs. RT-SET is developing virtual movie technology that will enable the integration of live studio filming with a virtual background. Recently RT-SET moved its activities to a major Israeli television studio where RT-SET can begin to produce programs based on the technology developed during the last year by RT-SET. Development of RT-SET's main product is still in process. As a result of the above, B.V.R. Technologies included $1,484,000 in losses for the first nine months of 1995 (compared to a loss of $288,000 which was included in the first nine months of 1994), primarily due to research and development cost increases and G&A expenses relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the operations of EVR. In October 1995, the company signed an agreement with a minority shareholder in EVR, pursuant to which the minority shareholder agreed to transfer to the company its interest in EVR (12.5%) in exchange for 38,710 shares of the company to be issued to it, in addition to 55,814 shares of Nexus held by the Company to be transferred to such a minority shareholder. The market price at the date of the agreement of all the shares granted to the minority shareholder was $600,000. Since EVR is a development-stage company, the company amortized the entire initial difference in the additional investment, recording a loss of approximately $550,000 in the fourth quarter of 1995. In December 1995, BVR and Chyron Chyron may refer to:
CHY Cherry-Burrel Corporation :NYSE/CSE) signed a letter of intent whereby Chyron will purchase a new class of convertible redeemable preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. to be issued by RT-SET. A binding agreement is expected to be executed between the parties on or before February 15, 1996. Under the terms of the agreement in principle, Chyron will issue common stock with a value, as defined, of $6,000,000, in exchange for a preferred position in RT-SET. The conversion of the shares will result in Chyron owning 19% of RT-SET. The agreement in principle also involves BVR Technologies and EVR granting Chyron certain call option rights, which, when exercised by Chyron, will result in Chyron owning a greater position in RT-SET common stock. Chryon will assist in marketing, sales, and distribution of RT-SET's Virtual Reality Studio Systems alongside RT-SET's own specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. sales teams. Chyron will also provide infrastructure for installation, service, and support functions on a worldwide basis. Chyron will purchase an RT-SET software system in January 1996, in order to develop specific software application programs for the television broadcast and high-end post-production markets. WORKING CAPITAL and BACKLOG Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. On Sept. 30, 1995, BVR had working capital amounting to $3,296,000, compared to $8,726,000 on Sept. 30, 1994. Backlog on Sept. 30, 1995, totaled approximately $45,600,000, to be supplied through 1997. At this point, a material part of the backlog to be supplied is under negotiation with one of the company's clients, which may result in the production work currently included in the backlog being performed on the client's premises. Although this will decrease the backlog, the company will collect royalties on such production work. B.V.R. Technologies Ltd. is engaged in the development, manufacture, and marketing of advanced training and simulation systems for the aircraft and other industries. Nexus is engaged in the development, manufacture, and marketing of low-energy wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. and location systems through applications of digital spread spectrum technologies. EVR is engaged in developing businesses in the entertainment industry, which will utilize civilian applications of the technologies developed by BVR for military use. -0-
B.V.R. TECHNOLOGIES LTD.
SELECTED FINANCIAL DATA Statement of Income Data:
Nine months ended Three months ended Year ended
Sept. 30, Sept. 30, Dec. 31,
1995 1994 1995 1994 1994
(US$ in thousands) (US$ in thousands) (US$ in thousands)
unaudited unaudited audited
Sales 7,374 12,021 2,119 5,569 16,779 Gross profit 1,321 1,640 661 626 2,494 Operating loss (3,849) (1,771) (1,038) (756) (2,132) Loss for the period (5,068) (1,079) (1,239) (1,154) (1,948) Loss per share (0.91) (0.20) (0.22) (0.21) (0.37) Weighted average number of shares outstanding (in thousands) 5,568 5,379 5,568 5,379 5,278 Balance Sheet Data:
Sept. 30, Dec. 31,
1995 1994 1994
(US$ in thousands) (US$ in thousands)
unaudited audited
Total assets 21,647 24,719 24,189 Working capital 3,296 8,726 7,760 Shareholders' equity 7,762 13,731 12,829 CONTACT: B.V.R. Technologies Ltd., Tel Aviv Yaron Sheinman, 972-3-571-5671 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion