Carver Announces New Sales and Marketing Plan With Two New Channels of Distribution Including Internet Sales; the Closing of Interim Financing; and Fourth Quarter and 1997 Year End Results.WOODINVILLE, Wash.--(BUSINESS WIRE)--May 5, 1998--Carver Corporation (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 :CAVR CAVR Canadian Administrators of Volunteer Resources CAVR Canadian Agreement on Vehicle Registration CAVR Center for Audio-Visual Research CAVR Completeness, Accuracy, Validity and Restricted access (financial accounting) ) today announced that it had closed a sale of 3,000,000 shares of restricted Common Stock of the Company to one of its preferred shareholders, Renwick Ren·wick , James 1818-1895. American architect who designed the Smithsonian Institution in Washington, D.C. (1848), and Saint Patrick's Cathedral in New York City (1853). Special Situations Fund, L.P., for $375,000, or $0.125 per share. This capital infusion Capital infusion Often refers to the cross-subsidization of divisions within a firm. When one division is not doing well, it might benefit from an infusion of new funds from the more successful divisions. provides the Company short term funding while it continues to refine and commence implementation of a new business plan and seek further financing that the Company believes will allow it to return to profitability. The Company also announced that on April 30th, it launched two new channels of distribution that will allow consumers to purchase Carver's complete line of audio and home theater An audio/video entertainment center that has a large-screen TV and hi-fi system with three speakers in the front (left, right and center) and left and right speakers in the rear. Starting in the early 1990s, video inputs were added to stereo receivers and preamplifiers. products directly from their corporate headquarters in addition to a network of manufacturer supported dealers. Carver carver /car·ver/ (kahr´ver) a tool for producing anatomic form in artificial teeth and dental restorations. carver (carving instrument), n is the first major high-end audio High-end audio is a term used to describe equipment that is purported by the manufacturers to be the best, regardless of the price. Definition of 'high-end' High-end audio manufacturer to offer a complete line of audio and home theater electronics to the consumer through direct sales channels. The Company reported 1997 sales of $11 million and a net loss of $3.2 million, or $0.84 per share, compared to 1996 revenues of $14.5 million and a net loss of $3.2 million, or $0.86 per share. The Company stated that revenues were impacted by a severe shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. in working capital which restricted its marketing and sales efforts and its ability to supply product. Revenues for the quarter ended December December: see month. 31, 1997 were $4.0 million and a net loss of $957,000, or $0.24 per share compared to sales of $2.5 million and a net loss of $1,232,000, or $0.48 per share for the corresponding period in 1996. Fourth quarter 1997 revenues were impacted by stocking orders for the Company's two new Cinema Speaker systems. The Company has previously announced that it must obtain additional working capital to meet its ongoing operational requirements (programming) operational requirements - Qualitative and quantitative parameters that specify the desired capabilities of a system and serve as a basis for determining the operational effectiveness and suitability of a system prior to deployment. . The exact amount of additional working capital required by the Company, and the timing of the need for such capital, will be determined by numerous factors which could be significantly affected by the implementation of a new business plan including: the extent to which the Company is able to negotiate more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. payment terms with its suppliers and customers; the timing of, level of, and margin on sales to the Company's customers; the Company's ability to revise currently outstanding purchase orders; and the amount of resources available for product development and other 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. . The Company is actively seeking additional working capital from a variety of sources. Statements made in this news release concerning future events, including the Company's ability to obtain additional operating capital Noun 1. operating capital - capital available for the operations of a firm (e.g. manufacturing or transportation) as distinct from financial transactions and long-term improvements capital, working capital - assets available for use in the production of further assets , are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. and are subject to a number of risks and uncertainties that might cause actual results or achievements to differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such statements. These uncertainties include changes in economic conditions and market demand, timely development, production release and market acceptance of new products, activities by competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. , retention of key personnel, reliance on key suppliers, level of sales by dealers and other channels of distribution, and the risks and uncertainties identified from time to time in the Company's filings with the Securities and Exchange Commission, and other communications. For almost 20 years, Carver Corporation has been one of the most recognized brands in consumer audio. The Company designs, develops, manufactures and markets hi-fidelity audio and home theater products to the mid- mid- pref. Middle: midbrain. to high-end audio entertainment systems market. The Company's audio products are carried in a broad range of audio outlets nationwide, including Circuit City stores. See www.carver.com. -0-
Carver Corporation
Consolidated Statement of Income
(Unaudited)
(in thousands, except per share)
Quarter Ended Year Ended
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December 31, December 31,
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1997 1996 1997 1996
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Net Sales
Domestic Consumer 3,491 2,314 9,528 11,989
Professional Line - - - 432
OEM 97 19 97 137
International 249 294 844 1,279
Other 124 163 546 682
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Total Net Sales 3,961 2,790 11,015 14,519
Cost of Sales 3,266 2,454 9,556 11,604
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Gross Margin 695 336 1,459 2,915
18% 12% 13% 20%
Operating Expenses:
Selling 559 773 2,152 2,629
General & Administrative 665 610 2,423 2,079
Engineering, Research &
Development 369 204 1,152 711
Gain on Sale of professional
prod line - 526 (202) 526
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Total Operating Expenses 1,593 1,587 5,525 5,945
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Income (Loss) from Operations (898) (1,251) (4,066) (3,030)
Other Income (Expense)
Interest Expense (67) (22) (154) (202)
Interest Income (1) - 6 50
Gain on sale of facility - - 859 -
Other 9 41 123 (21)
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Net Income (Loss) (957) (1,232) (3,232) (3,203)
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Net Loss Per Common Share (0.24) (0.48) (0.84) (0.86)
Weighted Average Shares Outstanding 3,930 3,726 3,842 3,706
Consolidated Balance Sheets
(in thousands)
December 31,
1997 1996
Cash & Short term Investments 233 70
Net Receivables 1,876 1,627
Inventory 4,758 4,176
Other Assets 327 907
Net Property, Plant & Equipment 805 2,444
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Total Assets 7,999 9,224
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Total Liabilities 3,948 2,066
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Shareholders Equity 4,051 7,158
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Total Liabilities & Equity 7,999 9,224
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CONTACT: Carver Corporation John P. World, 425/482-3400 |
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