Chyron Corporation Announces Fourth Quarter Results.Business Editors MELVILLE, N.Y.--(BUSINESS WIRE)--Feb. 22, 2001 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. (NYSE NYSE See: New York Stock Exchange :CHY CHY Commission for Hydrology (WMO) CHY Cherry-Burrel Corporation ), a leading provider of broadcast technology, today announced financial results for the fourth quarter ended December 31, 2000. Revenues for the three and twelve month periods ended December 31, 2000 were $11.4 million and $56.3 million, respectively, compared to $12.8 million and $60.7 million for the same periods last year. Net losses for the three and twelve month periods ended December 31, 2000 were $5.4 million, or $0.15 per share, and $11.9 million, or $0.34 per share, compared to net losses of $1.8 million, or $0.06 per share, and $29.8 million, or $0.93 per share, in the same periods last year. Results for the twelve months ended December 31, 1999 included restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and other non-recurring charges totaling $6.7 million, or $0.21 per share. Fourth quarter 2000 revenues from the graphics division were $6.2 million compared to $6.6 million in the fourth quarter of 1999. Revenues continue to be impacted by the shift from the high-end iNFiNiT! products to the lower priced Windows NT-based Duet and Aprisa clip/stillstore products. Revenues from the signal distribution and automation division were $5.2 million compared to $6.2 million in the same period last year. The decline is attributable to unfilled orders resulting from disruptions caused by the implementation of the division's new inventory-management system and to negative foreign exchange rates, which reduced revenues by 7%. Fourth quarter 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. were $2 million higher than in the comparable quarter in 1999. This was due to a $3 million increase associated with the launch of the Company's two new divisions, Streaming Services and Interactive, offset by an overall decrease in expenditures in the Company's core graphics and signal distribution and automation products businesses. During the fourth quarter of 2000 the Company utilized cash to fund the operating losses 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. and other changes in working capital and to invest in infrastructure in the Streaming Services business. Investing activities, including the $6 million investment by Microsoft, were favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. and overall changes in cash were minimal. The cash balance at the end of 2000 was approximately $15.0 million. Subsequent to the close of the quarter, the Company acquired Interocity Development Corporation (Interocity) for $5 million. "The year 2000 was important for Chyron Chyron may refer to:
"We are very excited about our expanded relationship with Microsoft. In addition to investing $6 million in our Company, Microsoft is working with us to develop opportunities in the streaming media See streaming audio, streaming video and digital media hub. and interactive TV markets. Besides Microsoft, we formed a number of important new partnerships in this space with Liberate (Liberate Technologies, San Mateo, CA) A software company that specialized in the information appliance field. Formerly Network Computer, Inc. (NCI), a spin-off from Oracle in 1996, it changed its name in 1999. and Mixed Signals. We also completed a successful pilot with Home & Garden TV that broadcast real-time coverage of the Rose Bowl parade marking the first use of real-time interactivity using Chyron Graphics products." "We continued to build out our Streaming Services business and added new customers such as Alcoa-Thiokol Propulsion Propulsion The process of causing a body to move by exerting a force against it. Propulsion is based on the reaction principle, stated qualitatively in Newton's third law, that for every action there is an equal and opposite reaction. , Hollinger Telegraph and Freelotto.com," continued Henderson. "With the recent acquisition of Interocity, we have added significantly to our customer base, content creation capability, technology and revenue generating ability. We also have strengthened the management team with the appointment of Rebecca Howland to the position of President of Chyron Streaming Services." Concerning the outlook for Chyron, Henderson said, "We remain a leader in the provision of signal distribution and graphics products for the broadcast industry and, as the transition to digital occurs, we are well positioned to succeed. However, our customers are facing capital budget constraints A Budget Constraint represents the combinations of goods and services that a consumer can purchase given current prices and his income. Consumer theory uses the concepts of a budget constraint and a preference ordering to analyze consumer choices. in anticipation of a slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the U.S. economy, and we are seeing few signs of growth in our traditional markets. This has led us to approach 2001 with caution, adopting a modest outlook for growth and sizing our business accordingly. "We expect that quarterly graphics revenues throughout 2001 will be fairly consistent with the fourth quarter of 2000. With regard to signal distribution and automation products, we expect that revenues for the first quarter 2001 will increase by approximately 20% as we fill the backlog of shipments, with revenues in the remaining quarters of 2001 fairly consistent with first quarter levels. By integrating Interocity into the Streaming Services business, we should be able to grow revenues in this division to a level that will represent approximately 10% of consolidated revenues on an annual basis." Henderson concluded, "We strongly believe that our core businesses must remain sized at a level that will not reduce our cash balances while we continue to invest prudently in our new initiatives. We operate in a rapidly changing environment and remain responsive to changes as they occur. We have configured con·fig·ure tr.v. con·fig·ured, con·fig·ur·ing, con·fig·ures To design, arrange, set up, or shape with a view to specific applications or uses: our business with a substantial level of variable cost, giving us the flexibility to reduce costs should economic conditions worsen wors·en tr. & intr.v. wors·ened, wors·en·ing, wors·ens To make or become worse. worsen Verb to make or become worse worsening adjn . "We continue to believe the streaming services and interactive markets represent meaningful growth opportunities for Chyron. While the markets for our core businesses remain static and the business and regulatory environments uncertain, we plan to take full advantage of the opportunities presented by streaming services and interactive TV." About Chyron Chyron Corporation is the world leader in the development and delivery of products and services in the media casting market - an area which delivers media to consumers that includes high definition TV, standard definition TV, interactive TV or any form of broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). . The Company provides broadcast graphics, high bandwidth and multi media signals, streaming media technology and content management. Chyron is the only global company with 30 years of expertise and technology to provide the services and solutions for streaming media and interactive television, enabling the highest quality experience to be delivered to consumers. Chyron Corporation's existing customer base is comprised of nearly all television stations and TV networks throughout Europe and North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . With offices in the U.K., France, Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. and U.S. and an enviable en·vi·a·ble adj. So desirable as to arouse envy: "the enviable English quality of being able to be mute without unrest" Henry James. client list that includes the world's leading broadcasters, Chyron has been providing the owners of content with value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. products and services for over 30 years. For more information about Chyron products and services, please visit the Company website at http://www.chyron.com or contact Chyron Corporation, 5 Hub Drive, Melville, NY 11747. TEL TEL Telephone TEL Telegram TEL Telugu (langauge) TEL Terrorist Exclusion List TEL Technology-Enhanced Learning TEL Transporter-Erector-Launcher TEL Tetra-Ethyl Lead TEL Team Deutsche Telekom : 1-631-845-2000; FAX: 1-631-845-3896; EMAIL See e-mail. : info@chyron.com. Certain of these statements contained in this press release may be deemed 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. . Such statements, and other matters addressed in this press release, involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially from these statements and matters are the risks and other factors detailed, from time to time, in the Company's reports with the Securities and Exchange Commission, including, but not limited to, the Company's Annual 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 its Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. . All trademarks are the property of their respective owners.
CHYRON CORPORATION
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands except per share data)
Three Months Ended Year Ended
December 31, December 31,
2000 1999 2000 1999
Net sales $11,421 $12,756 $56,272 $60,709
Gross profit 4,964 6,041 25,928 26,058
Selling, general &
administrative 8,726 6,580 29,858 28,166
Research & development 1,569 1,578 6,862 7,315
Restructuring and other
non-recurring charges 6,681
Total operating expenses 10,295 8,158 36,720 42,162
Operating loss (5,331) (2,117) (10,792) (16,104)
Gain on sales of
investments 130 541 607 541
Interest and other
expense, net (182) (507) (1,723) (1,272)
Loss before provision
for income taxes (5,383) (2,083) (11,908) (16,835)
Benefit (provision) for
income taxes 301 (12,949)
Net loss (5,383) (1,782) (11,908) (29,784)
Loss per common share -
basic and diluted $(.15) $(.06) $(.34) $(.93)
Weighted average number
of common and common
equivalent shares outstanding 36,662 32,089 34,824 32,084
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
December 31, December 31,
2000 1999
Assets:
Cash and cash equivalents $15,332 $5,453
Accounts receivable 13,365 11,751
Inventories 14,503 13,766
Other current assets 2,084 1,038
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Total current assets 45,284 32,008
Non-current assets 20,544 26,373
--------- ------------
Total assets $65,828 $58,381
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Liabilities and shareholders'
equity:
Current liabilities $14,265 $14,247
Non-current liabilities 18,602 21,622
--------- ------------
Total liabilities 32,867 35,869
Shareholders' equity 32,961 22,512
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Total liabilities and
shareholders' equity $65,828 $58,381
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