Chyron Corporation Reports First Quarter 2006 Results.MELVILLE, N.Y. -- 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. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). : CYRO), a leading developer of hardware and software products serving the broadcast graphics and digital information display industries, announced its results of operations for the first quarter of 2006. Revenue for the first quarter ended March 31, 2006 was $4.8 million, 20 percent lower than the $6.0 million reported for the first quarter of 2005. Included in first quarter 2006 was revenue of $0.2 million from the Company's ChyTV product line. Net loss for the quarter was $511,000, or $0.01 per share, and included a $257,000 operating loss 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. attributable to the ChyTV product line. Net loss for first quarter 2005 was $276,000, or $0.01 per share. Michael Wellesley-Wesley, Chyron Chyron may refer to:
Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. plans in late February - too late to have any impact on the quarter. Improved margins and continued tight expense controls mitigated mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. the impact of the 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 sales activity. "It is my belief, however, that this unusually weak first quarter will prove to be an anomaly Abnormality or deviation. Pronounced "uh-nom-uh-lee," it is a favorite word among computer people when complex systems produce output that is inexplicable. See software conflict and anomaly detection. in an otherwise strong growth year for Chyron. Our pipeline of potential business for the next two quarters is currently very strong and we have just returned from an exceptional National Association of Broadcasters tradeshow (NAB) where our powerful and cost-effective products were warmly received and won several awards. We are currently seeing strong renewed sales quote A sales quote allows a prospective buyer to see what costs would be involved for the work they would like to have done. Many businesses provide services that cannot have an upfront price, as the costs involved can vary. activity which should translate into increased business during the balance of 2006," added Mr. Wellesley-Wesley. Gross margins improved to 65 percent for first quarter 2006 as compared to 59 percent for the comparable prior year's 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. for the first quarter were $3.7 million, down $57,000 from the first quarter of 2005. Included in first quarter 2006 operating expenses were $85,000 in legal fees associated with settlement of a legal claim against the Company and $57,000 for the write-off of and costs associated with the Company's major trade show booth, which was damaged in transit and has since been replaced. Operating loss for the quarter was $503,000, which included an operating loss of $257,000 for the ChyTV product line. Webcast of Earnings Conference Call Chyron Corporation management will host a conference call on Thursday, May 11, 2006, at 12:00 PM EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT , to review the quarter's results; this call will be broadcast live over the Internet simultaneously and may be accessed at www.chyron.com or www.earnings.com. Web participants are encouraged to go to either website at least 15 minutes prior to the start of the call to register, download, and install any necessary audio software. The online archive will be available shortly after the conclusion of the call and continue for seven days. Chyron Corporation With unwavering clarity of vision, Chyron continues to define and dominate the world of broadcast graphics. Winner of numerous awards, including two Emmys, Chyron has proven itself as the undisputed leader in the industry. From the compact Micro-X to the blazing Hyper-X SD/HD, Chyron's exceptional Duet product line brings unmatched, 2D and 3D graphics creation and performance to the most demanding studio and mobile operations. Rounding out Chyron's graphics offerings are still and clip servers, ticker ticker An automated quotation system on which security transactions are reported after they occur on an exchange floor. Even though the newer systems are electronic and no longer actually tick, the name of the old mechanical device has stuck. and telestration systems, and MOS (1) (Metal Oxide Semiconductor) See MOSFET. (2) (Mean Opinion Score) The quality of a digitized voice line. It is a subjective measurement that is derived entirely by people listening to the calls and scoring the results from newsroom integration solutions. The ChyTV product line leverages Chyron's broadcast expertise with video graphics devices for microcasting to digital information displays. Chyron has a unique, 40-year history of service and support for its products that far exceeds that of most manufacturers. For more information about Chyron products and services, please visit the company websites at www.chyron.com and www.chytv.com (OTCBB: CYRO). Forward-looking Statement 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. From time to time, including in this press release, the Company may publish forward-looking statements 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, changes in the industry, new products, research and development activities and similar matters. The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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 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. The risks and uncertainties that may affect the operations, performance, development and results of the Company's business include, without limitation, the following: product concentration in a mature market, dependence on the emerging digital market and the industry's transition to DTV (Digital TeleVision) Transmitting TV using digital signals. The major DTV standards are ATSC (North America), DVB (Europe) and ISDB (Japan). All three use MPEG-2 video compression and Dolby Digital audio compression. DVB and ISDB also include MPEG audio compression. and 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 , consumer acceptance of DTV and HDTV, resistance within the broadcast or cable industry to implement DTV and HDTV technology, use and improvement of the Internet, new technologies that could render certain Chyron products to be obsolete, a highly competitive environment, competitors with significantly greater financial resources, new product introductions by competitors, seasonality, fluctuations in quarterly operating results, ability to maintain adequate levels of working capital, the viability of the OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. as a trading platform and expansion into new markets.
CHYRON CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share amounts)
Three Months Ended
March 31,
2006 2005
------- -------
Net sales $4,843 $5,975
Gross profit 3,167 3,499
Operating expenses:
Selling, general and administrative 2,767 3,001
Research and development 903 726
------- -------
Total operating expenses 3,670 3,727
------- -------
Operating (loss) (503) (228)
Interest and other income (expense), net (8) (48)
------- -------
Net loss (511) (276)
Net loss per common share -
basic and diluted: $(0.01) $(0.01)
Weighted average number of common and
common equivalent shares outstanding -
Basic 41,380 41,329
Diluted 41,380 41,329
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(In U.S. dollar thousands)
March December
31, 31,
2006 2005
------- --------
Assets:
Cash and cash equivalents $2,255 $2,331
Accounts receivable, net 3,594 4,613
Inventories, net 2,803 2,492
Other current assets 202 283
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Total current assets 8,854 9,719
Non-current assets 750 659
------- --------
Total assets $9,604 $10,378
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Liabilities and shareholders' deficit:
Current liabilities $5,437 $6,255
Non-current liabilities 5,228 4,716
------- --------
Total liabilities 10,665 10,971
------- --------
Shareholders' deficit (1,061) (593)
------- --------
Total liabilities and shareholders' deficit $9,604 $10,378
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