Chyron Corporation Reports 1998 Third Quarter Profit.MELVILLE, N.Y.--(BUSINESS WIRE)--Oct. 29, 1998-- Company Ships "First to the Market" HDTV (High Definition TV) A set of digital television (DTV) standards that offer the highest resolution and sharpest picture. Although some HDTV sets are available in standard (rather square) screen sizes, the overwhelming majority of sets are wide screen, which eliminates Graphics Generator 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 ), the world's premier manufacturer of television character generators (1) Circuitry that converts data characters into dot patterns for a display screen. (2) A device that creates text characters that are superimposed onto video frames. , graphics, routing and automation systems, today announced financial results for the third quarter of 1998. The net income for the third quarter was $1.3 million or $0.04 per share compared to net income of $1.2 million or $0.04 per share for the same period in 1997. This net increase included the recognition of a $1.2 million gain on the sale of the Company's Trilogy A company founded in 1979 by Gene Amdahl to commercialize wafer scale integration and build supercomputers. It raised a quarter of a billion dollars, the largest startup funding in history, but could not create its 2.5" superchip. subsidiary. Net revenues for the third quarter ended September 30, 1998 were $22.1 million compared to $23.5 million for the same period of 1997. This 6% decrease was primarily due to a loss in volume from the sale of Trilogy and a decline in international graphic and international Pro-Bel sales. An increase in Pro-Bel America revenues offset a portion of this decline. Net revenues for the nine months ended September 30, 1998 were $64.7 million compared to $63.6 million for the same period in 1997. For the nine months ended September 30, 1998, the Company reported a net loss of $3.5 million or $0.11 per share compared to a net loss of $1.4 million or $0.04 per share for the same period in 1997. Research and development expenses, net of amounts capitalized and amortized, increased to $2.6 million or 12% of net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight versus $1.7 million or 7% of net sales for the comparable 1997 quarter. This increase in research and development spending reflects management's strategy to reposition the Company to supply the U.S. television market with high definition and digital standard definition equipment. Operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before for the September 30, 1998 quarter amounted to $0.6 million versus an operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $2.4 million in the comparable quarter in 1997. Commenting on the Company's performance, Chyron's President and Chief Executive Officer, Edward Grebow, stated, "Chyron Chyron may refer to:
adv. & adj. Throughout an entire industry: sales that have decreased industrywide; industrywide cooperation. softness in sales. Sales increased 5% from the second quarter of 1998 and 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 reduced by $1.6 million (exclusive of non-recurring items) or 14% from the second quarter of 1998. This was primarily accomplished by a 7% reduction in full-time staff and reduction in overall operating costs operating costs npl → gastos mpl operacionales . "Chyron shipped its first HDTV graphics system on September 30, 1998. This new product, called Duet HD, represents the next generation of video graphics engines. Duet is the only HDTV character generator on the market today. We anticipate increasing shipments in the fourth quarter and accelerating the pace of delivery in 1999. Duet is the most significant new graphics product to be introduced by Chyron since the introduction of the iNFiNiT! eight years ago. "Also new from Chyron Graphics in the third quarter were the Chyron Aprisa still and clip store systems; Message Compose 10.00 software for the iNFiNiT! family of graphics generators; the iNFiNiT!/060 CLYPS live capture and playback system; and the Dual Preview MAX!> output. Pro-Bel launched the powerful TX 320 and TX 310 Master Control Switchers and new Graphical User Interfaces graphical user interface (GUI) Computer display format that allows the user to select commands, call up files, start programs, and do other routine tasks by using a mouse to point to pictorial symbols (icons) or lists of menu choices on the screen as opposed to having to for the Compass and Sextant sextant, instrument for measuring the altitude of the sun or another celestial body; such measurements can then be used to determine the observer's geographical position or for other navigational, surveying, or astronomical applications. Frame 4 systems. These state-of-the-art products give Chyron a competitive edge in the industry by setting new technological standards and equipping Chyron's sales force with complete graphics, routing and automation solutions to offer their customers. "Broadcasters continue to defer de·fer 1 v. de·ferred, de·fer·ring, de·fers v.tr. 1. To put off; postpone. 2. To postpone the induction of (one eligible for the military draft). v.intr. capital purchases, awaiting clarity on the rollout of digital television and HDTV. With more than 1,400 broadcast stations and numerous post production facilities poised to convert to these technologies, we are beginning to see signs that the digital conversion is gaining momentum and believe that we are well positioned for a leadership role in television's digital future." Serving the television industry for three decades, Chyron Corporation has established itself as a leading innovator in the development of television graphics and distribution systems, including products to meet the demands of digital and high definition television. Chyron provides a broad range of leading-edge hardware and software products, including paint and animation systems, character generators, signal distribution and monitoring systems, master control switchers, broadcast automation and media management packages. For more information about Chyron products and services, please visit the Company website at www.chyron.com. The statements in this release may contain 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. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc such matters as anticipated financial performance, business prospects, technological developments, new products, research and development activities and similar matters. The Private Securities Reform Act of 1995 provides a safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. for forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors, in particular the pace of digital conversion, global economic conditions, and slower than anticipated demand for HDTV could cause the Company's actual results to differ materially from the anticipated results or other expectations expressed in the Company's forward-looking statements. These risks and uncertainties are detailed in the Company's Annual Report on Form 10K for the year ended December 31, 1997, which is incorporated herewith here·with adv. 1. Along with this. 2. By this means; hereby. herewith Adverb Formal together with this: by reference. -0-
CHYRON CORPORATION
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30 September 30
1998 1997 1998 1997
---- ---- ---- ----
Net sales $22,062 $23,523 $64,683 $63,621
------ ------ ------ ------
Gross profit 10,450 10,937 30,852 29,004
------ ------ ------ ------
Operating expenses 9,867 8,556 31,568 26,712
Non-recurring items - - 3,979 3,082
------ ------ ------ ------
Operating income (loss) 583 2,381 (4,695) (790)
Gain on sale of subsidiary 1,194 - 1,194 -
Interest and other expense, net (569) (411) (1,405) (1,175)
------ ------ ------ ------
Income (loss) before taxes 1,208 1,970 (4,906) (1,965)
Income taxes (benefit) (113) 734 (1,429) (573)
------ ------ ------ ------
Net income (loss) $ 1,321 $ 1,236 $(3,477) $(1,392)
======= ======= ======= =======
Earnings (loss) per common
share - basic and diluted $ 0.04 $ 0.04 $ (0.11) $ (0.04)
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Weighted average number of
common and common equivalent
shares outstanding 32,072 32,583 32,072 32,516
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Condensed Consolidated Balance Sheets
(In thousands)
September 30, December 31,
1998 1997
(Unaudited)
Assets
Current assets $47,331 $57,114
Other assets 35,744 36,966
------- -------
Total assets $83,075 $94,080
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Liabilities and Shareholders' Equity
Current liabilities $15,165 $18,159
Other liabilities 17,132 21,959
------- -------
Total liabilities 32,297 40,118
Shareholders' equity 50,778 53,962
------- -------
Total liabilities and shareholders'
equity $83,075 $94,080
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