CHYRON CORPORATION REPORTS SECOND QUARTER OPERATING RESULTS; Net Income Up 58% On 73% Increase in Sales.MELVILLE, N.Y.--(BUSINESS WIRE)--August 6, 1996--Chyron Corporation (NYSE NYSE See: New York Stock Exchange :CHY CHY Commission for Hydrology (WMO) CHY Cherry-Burrel Corporation ) today reported operating results for the second quarter and six months ended June June: see month. 30, 1996. Sales for the quarter ended June 30, 1996 increased to $22.5 million, up 73% from sales of $13.1 million for the same quarter of 1995. Net income for the 1996 second quarter was $1.9 million, or $.02 per share, a 58% increase from net income of $1.2 million, or $.01 per share, for the second quarter of 1995. For the six months ended June 30, 1996, sales of $36.3 million and net income of $3.8 million, or $.04 per share, increased 48% and 82%, respectively, over sales and net income of $24.5 million and $2.1 million, or $.02 per share, respectively, for the six months ended June 30, 1995. The increase in sales for the three and six month periods ended June 30, 1996 was primarily attributable to sales contributions from Pro-Bel, Ltd., acquired in April 1996. The increases in net income and earnings per share for the quarter and six months ended June 30, 1996 over the comparable 1995 periods were primarily attributable to the continued internal growth of Chyron's traditional businesses. Michael Wellesley-Wesley, Chairman and Chief Executive Officer, said, "This is the first quarter in which Chyron Chyron may refer to:
Gross margins for the three and six month periods ended June 30, 1996 increased to $11.4 million and $19.2 million, respectively, from $7.3 million and $13.7 million for the comparable prior year periods. As a percentage of sales, gross profits decreased to 51% from 56% and to 53% from 56% for the second quarter and six month periods of 1996, respectively, from the comparable 1995 periods, principally due to the new product mix as a result of the acquisition of Pro-Bel. Selling, general and administrative expenses (SG&A) as a percentage of sales decreased to 30% and 29%, respectively, for the quarter and six months ended June 30, 1996 from 34% and 33% for the comparable periods a year ago. These decreases were the result of increased cost efficiencies at Chyron offset by SG&A expenses at Pro-Bel and the goodwill amortization. Research and development expenses increased to $1.2 million and $2.3 million for the quarter and six months ended June 30, 1996 from $1.1 million and $2.0 million, respectively, for the comparable 1995 periods as a result of the research and development expenditures of Pro-Bel. 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. for the second quarter and first six months of 1996 rose by 117% and 104% to $3.5 million and $6.4 million, respectively, compared to $1.6 million and $3.2 million for the comparable 1995 periods. These increases are attributable to the increase in sales and gross margin contributions as a result of continued sales growth at Chyron. At June 30, 1996, the Company's balance sheet is highlighted by current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. of $54.8 million and current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. of $22.7 million, resulting in a current ratio of 2.4 to 1. Working capital of $32.1 million reflects an increase of 3% from March 31, 1996 and 14% from December 31, 1995. All forward looking information are estimates by the Company's management and are subject to various risks and uncertainties that may influence the Company's development efforts, products and technologies and other risks as detailed from time to time in the Company's SEC reports and filings. Chyron Corporation Chyron Corporation is a Melville, NY based company founded in 1966. The company develops and manufactures on screen graphics solutions for the broadcast industry. In the United States the graphics (e.g. designs, manufactures and serves worldwide markets for digital equipment, software systems and solutions for graphics creation, signal routing and data management which facilitate television production and post-production processes. Chyron products are used to enhance creativity and add value to live and recorded televised "content" delivered to worldwide audiences via broadcast, cable, direct broadcast, tape, CD-ROMs and other multimedia and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. display medium formats in use today and planned for the future. -0-
CHYRON CORPORATION
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
Sales $22,532 $13,061 $36,257 $24,498 Gross Profit 11,401 7,306 19,187 13,668 Operating Income 3,455 1,594 6,427 3,155 Interest Expense, Net 298 124 422 277 Income Before Taxes 3,157 1,470 6,005 2,878 Income Taxes/Equivalent Provision 1,248 263 2,216 791 Net Income $1,909 $1,207 $3,789 $2,087 Earnings Per Common Share(a) $.02 $.01 $.04 $.02 Weighted Average Number of Common and Common Equivalent Shares Outstanding: 98,237 90,249 95,581 90,077 (a) Earnings per share is based on the weighted average number of common shares outstanding during the period plus additional shares issuable upon the assumed exercise of outstanding common stock purchase warrants. Fully diluted earnings per share are not presented since such presentation would not be materially different from primary earnings per share. -0- CHYRON CORPORATION Condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. Consolidated Balance Sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. (In thousands) (unaudited) June 30, 1996 December 31, 1995 Current Assets $54,803 $37,659 Total Assets $81,254 $44,332 Current Liabilities $22,669 $ 9,438 Total Liabilities 38,327 14,349 Total Shareholders' Equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. 42,927 29,983 Total Liabilities and Shareholders' Equity $81,254 $44,332 CONTACT: Chyron Corporation Michael Wellesley-Wesley, Chairman & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. (516) 845-2005 Isaac Hersly, President & COO (Cell Of Origin) See mobile positioning. (516) 845-2013 Judy Mauro, Director of Corporate Communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. (516) 845-2015 or CHYRON'S INVESTOR RELATIONS Investor relations The process by which the corporation communicates with its investors. COUNSEL: The Equity Group Inc. Devin Sullivan, 212/836-9608 Robert Goldstein Gold·stein , Joseph Leonard Born 1940. American biochemist. He shared a 1985 Nobel Prize for discoveries related to cholesterol metabolism. , 212/371-8660 |
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