Chyron Reports 2001 Third Quarter Results.Business Editors MELVILLE, N.Y.--(BUSINESS WIRE)--Nov. 15, 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. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: CYRO), today announced financial results for the quarter ended September 30, 2001. Total revenue for the quarter ended September 30, 2001 was $11.3 million consisting of $4.7 million in revenue from the graphics division and $6.6 million in revenue from the signal distribution and automation division. Total revenue for the same quarter last year was $14.0 million, with $6.8 million in revenue from the graphics division and $7.2 million from the signal distribution and automation division. The Company reported a net loss for the third quarter of $10.1 million, or $0.25 per share, compared to a net loss of $2.4 million, or $0.07 per share, for the comparable quarter in 2000. Included in the third quarter results is a one-time charge of approximately $6.8 million associated with write-downs of goodwill and inventory. Excluding the charges, the net loss for the third quarter of 2001 was $3.2 million, or $0.08 per share. For the nine-month period ended September 30, 2001, the Company reported total revenue of $35.2 million and a net loss of $30.9 million, or $0.78 per share. This compares to revenue of $44.9 million and a net loss of $6.5 million, or $0.19 per share for the same period last year. Highlights for 3Q01: - Introduced new products at the successful IBC 2001 Conference in Amsterdam, including new DUET LE and DUET Pci from the Graphics division. - Secured a contract to supply a 1024 x 1024 digital routing, distribution, network monitoring and control system for British Telecom Ignite's Broadcast Services division. - Integrated the Lyric titling and graphics content creation software with Grass Valley Group's NewsEdit(TM) system to speed the titling and effects process for editors and increase on-air accuracy. - Received follow-on DUET orders from Studio Hamburg and France Television (two long-standing customers). - Announced collaboration with PBS for the use of Chyron Interactive product in the production of the LIFE series to be screened this fall. Roger Henderson, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. said, "We continue to see growing market acceptance of our new products and have successfully transitioned our Graphics sales from our legacy Infinit/Max/Maxine product ranges to our new Lyric/Duet/Aprisa ranges. Our Interactive TV initiative remains an important component in our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. strategy and differentiates our products in the marketplace. In view of the unsettled market conditions, we are aligning a·lign v. a·ligned, a·lign·ing, a·ligns v.tr. 1. To arrange in a line or so as to be parallel: align the tops of a row of pictures; aligned the car with the curb. our cost structure to match anticipated future revenues in order to restore profitability. In the fourth quarter, we are implementing a plan that reduces 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. by about 25% and headcount in excess of 20%. Furthermore, we are exploring opportunities to strengthen our capital structure and increase our cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. ." Henderson continued, "We have strong, competitive products, committed staff and a supportive customer base. We are sure that the steps we are taking will provide us with a firm financial foundation which, together with our new products, will enable us to gain market share in the current depressed business conditions. As a result we believe we are well-positioned to assume strong revenue growth as the markets rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective ." Separately, Chyron Chyron may refer to:
six-winged angels of the highest order, distinguished by their zeal and love. [O.T.: Isaiah 6:2; Benét, 915] See : Angel as interim Chief Financial Officer to replace Dawn Johnston who has left to pursue other opportunities. From time to time, including in this press release, the Company may publish 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, 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, rapid technological changes, use and improvement of the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the , new technologies that could render certain Chyron products to be obsolete OBSOLETE. This term is applied to those laws which have lost their efficacy, without being repealed, 2. A positive statute, unrepealed, can never be repealed by non-user alone. 4 Yeates, Rep. 181; Id. 215; 1 Browne's Rep. Appx. 28; 13 Serg. & Rawle, 447. , 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, expansion into new markets and the Company's ability to successfully implement its acquisition and strategic alliance strategy. 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 interactive television. Chyron provides a broad range of leading-edge hardware and software products, including graphics platforms, paint and animation systems, 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. , signal distribution systems, master control switchers, broadcast automation and media management. For more information about Chyron products and services, please visit the company website at www.chyron.com. All trademarks are held by their respective companies.
Condensed Consolidated Statements of Operations
(In thousands except per share data)
Three Months Ended
September 30,
(Unaudited)
2001 2000
Net sales $ 11,341 $ 14,027
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Gross profit 1,380 7,002
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Operating expenses:
Selling, general and
administrative 10,091 7,739
Research and development 1,216 1,790
Total operating expenses 11,307 9,529
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Operating loss (9,927) (2,527)
Interest and other income
(expense), net (130) 157
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Net loss $(10,057) $ (2,370)
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Loss per common share
- basic and diluted $ (.25) $ (.07)
Weighted average number
of common and common
equivalent shares
outstanding 39,564 35,431
Condensed Consolidated Balance Sheets
(In thousands)
September 30, December 31,
2001 2000
(Unaudited)
Assets:
Cash and cash equivalents $ 2,234 $ 15,332
Accounts receivable 10,173 13,365
Inventories 11,839 14,503
Other current assets 982 2,084
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Total current assets 25,228 45,284
Non-current assets 12,469 20,544
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Total assets $ 37,697 $ 65,828
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Liabilities and shareholders'
equity:
Current liabilities $ 16,559 $ 14,265
Non-current liabilities 18,157 18,602
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Total liabilities 34,716 32,867
Shareholders' equity 2,981 32,961
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Total liabilities and
shareholders' equity $ 37,697 $ 65,828
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