Chyron Corp. reports operating results.MELVILLE, N.Y.--(BUSINESS WIRE)--Oct. 31, 1996-- Third Quarter 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. Up 30% on Sales Increase of 46% Nine Months Net Income Per Share Up 44% on Sales Increase of 47% Chyron Chyron may refer to:
See: New York Stock Exchange :CHY CHY Commission for Hydrology (WMO) CHY Cherry-Burrel Corporation ) today reported operating results for the third quarter and nine months ended Sept. 30, 1996. Sales for the quarter ended Sept. 30, 1996 increased to $20.6 million, up 46% from sales of $14.1 million for the same quarter of 1995. Operating income for the 1996 third quarter rose to $3.5 million, a 30% increase over the comparable 1995 quarter. Net income for the 1996 third quarter was $1.8 million, or $.02 per share. Although operating income for the third quarter of 1996 exceeds 1995, 1996 third quarter net income reflects higher finance charges as a result of the Pro-Bel acquisition and a higher effective tax rate of 39.3% for 1996 vs. 27.5% in 1995. Accordingly, 1996 third quarter net income approximates the 1995 comparable period. For the nine months ended Sept. 30, 1996, sales of $56.9 million and net income of $5.6 million, or $.06 per share, increased 47% and 44%, respectively, over sales and net income of $38.6 million and $3.9 million, or $.04 per share, respectively, for the nine months ended Sept. 30, 1995. The higher tax rate of 37.7% for the first nine months of 1996 vs. 27.5% for the 1995 comparable period reduced 1996 nine month net income by approximately $922,000, or $.01 per share. The increase in sales for the three and nine month periods ended Sept. 30, 1996 was primarily attributable to sales contributions from Pro-Bel Ltd., acquired in April 1996. The increases in operating income for the third quarter and nine months ended Sept. 30, 1996 over the comparable 1995 periods were primarily attributable to the continued growth of both Chyron's and Pro-Bel's traditional product lines. The increase in net income for the nine months ended Sept. 30, 1996 over 1995 is attributable to the growth in sales, gross margin contribution and cost efficiencies at Chyron, offset by higher financing costs as a result of the Pro-Bel acquisition and a higher effective income tax rate in 1996. Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. Wellesley-Wesley, chairman and chief executive officer, said, "We are pleased with the healthy financial results achieved during the first nine months of 1996 and we are delighted with the progress made by Chyron and Pro-Bel as a combined company. Chyron and Pro-Bel, along with RT-SET exhibited their products together at Chyron's Booth at the International Broadcasters Conference (IBC IBC International Building Code IBC Iraq Body Count IBC Institutional Biosafety Committee IBC Inflammatory Breast Cancer IBC International Business Company IBC Independence Blue Cross IBC Insurance Bureau of Canada IBC International Broadcasting Convention `96) held in September September: see month. in Amsterdam Amsterdam, city, Netherlands Amsterdam (ăm`stərdăm', Dutch ämstərdäm`), city (1994 pop. 724,096), constitutional capital and largest city of the Kingdom of the Netherlands, North Holland prov. , The Netherlands Netherlands (nĕth`ərləndz), Du. Nederland or Koninkrijk der Nederlanden, officially Kingdom of the Netherlands, constitutional monarchy (2005 est. pop. 16,407,000), 15,963 sq mi (41,344 sq km), NW Europe. . We were most gratified grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. by the positive industry response to the company's products." Gross margins for the three and nine month periods ended Sept. 30, 1996 increased to $10.8 million and $30.0 million, respectively, from $8.0 million and $21.7 million for the comparable prior year periods. As a percentage of sales, gross profits decreased to 52% from 57% and to 53% from 56% for the third quarter and nine 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 28% and 29%, respectively, for the quarter and nine months ended Sept. 30, 1996 from 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 $1.5 million and $3.8 million for the quarter and nine months ended Sept. 30, 1996 from $1.0 million and $3.1 million, respectively, for the comparable 1995 periods as a result of the research and development expenditures of Pro-Bel. "We view R & D as an investment in the company's future growth as we continue to develop products to satisfy the growing global demand for innovative ways to deliver video content," stated Wellesley-Wesley. Operating income for the third quarter and first nine months of 1996 rose by 30% and 70% to $3.5 million and $9.9 million, respectively, compared to $2.7 million and $5.8 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 and Pro-Bel. At Sept. 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 $54.6 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 $21.3 million, resulting in a current ratio of 2.56 to 1. Working capital of $33.3 million reflects an increase of 18.1% from Dec. 31, 1995. Since Dec. 31, 1995, 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. increased 51% to $45.4 million from $30.0 million. 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. More information on factors that could affect the company's financial performance are included in the company's reports 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. and 10-Q filed with the Securities and Exchange Commission. Chyron 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 Post-production occurs in the making of audio recordings, films/movies, photography and digital art, videos and television programs. It is the general term for all stages of production occurring after the actual recording and ending with the completed work. 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 Corp.
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data)
Three Months Nine Months
Ended Sept. 30, Ended Sept. 30,
1996 1995 1996 1995
Sales $20,632 $14,099 $56,889 $38,596
Gross Profit 10,815 8,008 30,002 21,676
Restructure (Recapture) Provision (552) (552)
Operating Income 3,473 2,664 9,900 5,820
Interest Expense, Net 450 171 872 449
Income Before Taxes 3,023 2,493 9,028 5,371
Income Taxes/Equivalent Provision 1,189 686 3,405 1,477
Net Income $1,834 $1,807 $5,623 $3,894
Earnings Per Common Share/a $.02 $.02 $.06 $.04
Weighted Average Number of Common
and Common Equivalent Shares
Outstanding 98,750 91,408 96,558 90,597
Note 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 stock options.
Fully diluted earnings per share are not presented since such
presentation would not be materially different from primary earnings
per share.
Condensed Consolidated Balance Sheets
(In Thousands)
(unaudited)
Sept. 30, 1996 Dec. 31, 1995
Current Assets $54,655 $37,659
Total Assets $81,851 $44,332
Current Liabilities $21,332 $ 9,438
Total Liabilities 36,457 14,349
Total Shareholders' Equity 45,394 29,983
Total Liabilities and
Shareholders' Equity $81,851 $44,332
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CONTACT: Chyron Corp. Michael Wellesley-Wesley, 516/845-2005 Isaac Hersly, 516/845-2013 Judy Judy is most commonly a female given name, as well as a shorten form of Judith. It may also refer to:
or Chyron's Investor Relations Investor relations The process by which the corporation communicates with its investors. Counsel The Equity Group Inc. Devin Devin may refer to:
devin a term used to call someone a good friend 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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