CLI Reports Revenues of $38.4 Million and Operating Income of $439,000 for the Second Quarter.SAN JOSE, Calif.--(BUSINESS WIRE)--July 26, 1995--Compression Labs, Incorporated (CLI CLI - Command Line Interface CLI - Command Line Interpreter CLI - Cache-Line Interleaving CLI - Call Level Interface CLI - Caller's Line Identification (Pakistan) CLI - Calling Line Identification CLI - Calling Line Identifier CLI - Canon Law Institute CLI - Center for Logistics Innovation (US Army) CLI - Certified Legal Investigator CLI - Certified Lotus Instructor CLI - Clear Indication (ITU-T Rec. I.) (NASDAQ/NMS:CLIX) today reported revenues of $38.4 million, operating income of $439,000 and net income of $102,000 for the second quarter ended June 30, 1995 compared to revenues of $41.8 million, operating income of $727,000 and net income of $568,000 reported in the same quarter last year. For the six months ended June 30, 1995, revenues were $78.4 million, operating loss was $1.4 million and net loss was $2.0 million, compared to revenues of $79.6 million, operating income of $876,000 and net income of $596,000 for the first half of 1994. John E. Tyson, president, CEO and chairman of CLI said: "CLI's return to profitability in the second quarter reflects company-wide efforts to improve product margins, operating performance, and efficiency. In the videoconferencing market, we received orders from more than 80 new customers during the quarter. Our new eclipse small group systems continued to gain customer acceptance with major wins occurring in companies such as Dana Corporation, LSI Logic, and Adaptec. In the broadcast market, in concert with our partner Philips DVS, we began to ship small quantities of our digital Video-on-Demand settop terminal to Bell Atlantic for their commercial rollout in Dover Township, New Jersey. We were also pleased to receive a significant order for the first MPEG-2 broadcast system in the People's Republic of China. In addition, product margins increased by 6 percentage points, cash balances increased by 20 percent, inventory declined by 8 percent, and accounts receivable balances decreased by 4 percent compared to the previous quarter." During the second quarter, CLI announced a number of important new customers for its Radiance systems, reflecting increasing requirements for superior video quality for applications such as telemedicine and distance learning. CLI's superior video quality was an important factor in the selection of CLI's Radiance equipment by the University of Texas Medical Branch in Galveston where doctors diagnose and treat illnesses of Texas prison inmates via telemedicine. Dr. Ace Allen, editor of Telemedicine Today, described this as the largest telemedicine project in the U.S., "expecting to see about 2500 patients in 1995."(1) IBM and TelePort also cited superior video quality as the reason for choosing CLI codecs in their unique TeleSuite offering where users can enjoy dining, socializing, and entertaining together as if they are in the same room. As part of its increased focus on international markets, CLI launched its new fully standards-compliant eclipse 8200 and 8300 products throughout Asia, Australia and New Zealand. These easy-to-use systems have now been launched throughout the world, including Europe where Deutsche Telekom selected them because they have "more features that are standards-compliant than any other system on the market today in this price range." The Company also announced contracts for $5.3 million for its videoconferencing systems bringing the total number of CLI sytems ordered by various Chinese government agencies to 260. In addition, Jilin Provincial Broadcasting and Television Bureau awarded a $1.8 million contract to CLI for its Magnitude MPEG-2 encoders and decoders to transmit MPEG-2 digital TV via microwave to cable headends in the province of Jilin. This is believed to be the first commercial implementation of compressed digital video broadcast technology in China. As part of its strategy to market its Magnitude MPEG-2 broadcast products outside the U.S., CLI joined the Digital Video Broadcast (DVB) Project under the sponsorship of the European Broadcasting Union to develop common technology for digital television for satellite, cable or terrestrial broadcast systems. In addition to Europe, countries throughout Asia are turning to DVB for their standards for the future of digital TV. CLI is a leading designer and manufacturer of solutions for digital video communications. Using its core technology, compressed digital video, the Company provides a broad range of interactive videoconferencing products for business, government, educational and healthcare institutions, as well as broadcast products for the entertainment, business television and distance learning markets. (1) Editor's Notes: Telemedicine Today. (Spring 1995, Vol. 3, Issue 2) pp. 14 and 15. Radiance and Magnitude are trademarks of Compression Labs, Incorporated. -0-
COMPRESSION LABS, INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended June 30,
1995 1994
Revenues
Net product sales $35,785 $38,964
Research and development
contracts 2,616 2,876
Total Revenues 38,401 41,840
Costs and Expenses
Cost of revenues
Product sales 22,384 24,695
Research and development
contracts 1,095 2,908
Selling, general and
administrative 11,339 10,511
Research and development 3,144 2,999
Total Costs and Expenses 37,962 41,113
Operating Income 439 727
Interest income 3 41 Interest expense (340) (200)
Net Income $ 102 $ 568
Net Income Per Share $ 0.01 $ 0.04
Weighted average common shares and common share equivalents outstanding 15,505 15,280
Six Months Ended June 30,
1995 1994
Revenues
Net product sales $69,883 $71,751
Research and development
contracts 8,564 7,880
Total Revenues 78,447 79,631
Costs and Expenses
Cost of revenues
Product sales 45,114 44,623
Research and development
contracts 5,291 7,876
Selling, general and
administrative 21,975 20,266
Research and development 6,614 5,990
Settlement of litigation 897 --
Total Costs and Expenses 79,891 78,755
Operating Income (Loss) (1,444) 876
Interest income 9 134 Interest expense (555) (414)
Net Income (Loss) $ (1,990) $ 596
Net Income (Loss)
Per Share $ (0.14) $ 0.04
Weighted average common shares and common share equivalents outstanding 14,697 15,336
COMPRESSION LABS, INCORPORATED
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
1995 1994
(Unaudited) (Audited)
(In thousands)
ASSETS
Current Assets
Cash and cash equivalents $ 10,456 $ 11,319
Accounts receivable, less
allowance for doubtful
accounts of $1,004 in
1995, and $1,992 in 1994 55,391 54,470
Inventories 26,374 29,511
Prepaid expenses and other
current assets 2,194 2,715
Total Current Assets 94,415 98,015
Property and Equipment 44,239 40,133
Less: Accumulated depreciation
and amortization (23,206) (19,251)
Net Property and Equipment 21,033 20,882
Capitalized Software, net 14,639 11,868 Other Assets 6,915 886
Total Assets $137,002 $131,651
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Short-term debt $ 12,852 $ 9,803
Current portion of long-
term debt and capital
lease obligations 1,254 750
Accounts payable 18,180 20,040
Accrued liabilities 10,867 6,362
Deterred revenue 6,716 7,240
Total Current Liabilities 49,869 44,195
Long-Term Debt and Capital Lease Obligations 1,519 494
Stockholders' Equity
Preferred Stock
Undesignated Preferred
Stock, $.001 par value;
4,000,000 shares authorized;
none issued and outstanding -- --
Common Stock
$.001 par value; 25,153,658
shares authorized, shares
issued and outstanding;
14,759,896 in 1995, and
14,655,745 in 1994 15 15
Additional paid-in capital 115,044 114,402
Accumulated deficit (29,445) (27,455)
Total Stockholders' Equity 85,614 86,962
Total Liabilities and
Stockholders' Equity $ 137,002 $ 131,651
CONTACT: Compression Labs, Inc. William A. Berry, 408/922-5511 or William Dunk Partners, Inc. William Dunk, 214/960-9611 |
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