Chyron Reports 2002 Second Quarter Results.Business Editors MELVILLE, N.Y.--(BUSINESS WIRE)--Aug. 13, 2002 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) today announced financial results for the second quarter ended June June: see month. 30, 2002. Total revenue for the quarter ended June 30, 2002 was $10.3 million consisting of $5.9 million in revenue from graphics division and $4.4 million in revenue from signal distribution and automation division. Total revenue for the same quarter last year was $13.2 million, with $5.1 million from the graphics division, $8.1 million from the signal distribution and automation division and a minimal amount of revenue from the streaming services division that was discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: in the second quarter of last year. Revenues for the second quarter grew $0.2 million or 2% over revenues for the first quarter of 2002, with graphics division revenues up $1.0 million or 22% and signal distribution and automation division revenues down $0.8 million or 16%. The Company reported a net loss for the second quarter of $1.0 million, or $0.02 per share, compared to a net loss of $13.5 million, or $0.34 per share, for the comparable quarter of 2001 and a net loss of $0.8 million, or $0.02 per share, for the first quarter 2002. The second quarter 2001 results included $8.3 million of 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 unusual charges; excluding those charges, the net loss for second quarter 2001 was $5.2 million, or $0.13 per share. Included in the second quarter 2002 net loss was a foreign exchange gain of $0.3 million as compared to a minimal foreign exchange gain in the second quarter of 2001 and a foreign exchange loss of $0.1 million in the first quarter of 2002. Earnings before interest, taxes and depreciation EBITD is an initialism or acronym for Earnings Before Interest, Taxes and Depreciation. See EBITDA. Some people find it useful to know this value for a business. and amortization (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) for the second quarter were $0.2 million as compared to a $11.6 million loss for the second quarter of 2001 and a $0.4 million profit for the first quarter of 2002. In arriving at these EBITDA amounts, net interest of $0.5 million, $0.4 million and $0.6 million and depreciation and amortization of $0.7 million, $1.5 million and $0.6 million, have been added back to reported net loss for the second quarter of 2002, second quarter of 2001 and first quarter of 2002, respectively. "I continue to be pleased with the progress that Chyron Chyron may refer to:
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 US economy and the sluggish economies Sluggish Economy A state in the economy in which the growth is slow, flat or declining. The term can refer to the economy as a whole or a component of the economy, such as weak housing starts. in our primary markets in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). ," said Roger Henderson Henderson.1 City (1990 pop. 25,945), seat of Henderson co., NW Ky., on the Ohio River, in an oil, coal, tobacco, corn, and livestock area; founded 1797, inc. as a city 1867. , 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. . "Our revenues continued to be stable and we were earnings positive on an EBITDA basis for the quarter. Our gross margins in the second quarter were slightly lower than the first quarter due to aggressive pricing on two large sales, but because of our success in the sales of our graphics and automation products and our strong product line up, our margins, while under pressure, are holding up well. Importantly, we were cash positive for the quarter. Our expectation continues to be that the markets in which we operate will continue to be relatively flat for the remainder of 2002, with the US, UK and rest of Europe economic climates not improving substantially until mid 2003." "This quarter was a very busy time for us as we launched key new products which have expanded our ability to meet our customers' requirements and keep us in a leadership position. These include: -- Delivery of 12 DUETs to Canal Plus in France for use in live to air sports applications. -- Supplying DUET graphics tools to FOX Sports to provide on-air coverage of NASCAR, the season's highest rated sport. -- Delivery of Eclipse, Freeway, ICON and Aurora at CNN's new transmission center in London, England. -- Delivery of ICON and COSMOS to Shan Dong TV, and TX 420 Master Control switcher to Guangzhou TV. Both are new customers in China. -- Integration of Lyric with Liberate Technologies Mediacast server to enable TV graphics professionals to develop content with embedded interactive triggers allowing, for example, subscribers to vote or bet in real time via their remote control. -- Releasing Lyric iTV as one of the first products to integrate into Avid's Metasync program, allowing post-production professionals to synchronize Metadata with Video and Audio and hence tap into new revenue streams, such as closed captioning and subtitling text insertion, interactive TV content delivery and "converging media" applications. "While economic conditions were less than ideal, we have been encouraged that the FCC (1) (Federal Communications Commission, Washington, DC, www.fcc.gov) The U.S. government agency that regulates interstate and international communications including wire, cable, radio, TV and satellite. The FCC was created under the U.S. is taking a proactive role in promotion of Digital TV in the U.S. We see recent pronouncements, including the requirement for all TV sets to include a digital tuner A digital tuner is a tuning device that allows a television or radio set to receive signals via airwaves, satellite, or cable and translates them into a signal the device can display. from 2007, as positive steps to enabling the long promised digital transition." Other highlights for 2002 Second Quarter included: -- Delivery of 12 DUETs to Canal Plus in France for use in live to air sports applications. -- Supplying DUET graphics tools to FOX Sports to provide on-air coverage of NASCAR, the season's highest rated sport. -- Delivery of Eclipse, Freeway, ICON and Aurora at CNN's new transmission center in London, England. -- Delivery of ICON and COSMOS to Shan Dong TV, and TX 420 Master Control switcher to Guangzhou TV. Both are new customers in China. -- Integration of Lyric with Liberate Technologies Mediacast server to enable TV graphics professionals to develop content with embedded interactive triggers allowing, for example, subscribers to vote or bet in real time via their remote control. -- Releasing Lyric iTV as one of the first products to integrate into Avid's Metasync program, allowing post-production professionals to synchronize Metadata with Video and Audio and hence tap into new revenue streams, such as closed captioning and subtitling text insertion, interactive TV content delivery and "converging media" applications. 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, 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 (1) To make visible; to draw. The term comes from the graphics world where a rendering is an artist's drawing of what a new structure would look like. In computer-aided design (CAD), a rendering is a particular view of a 3D model that has been converted into a realistic image. 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 strategic alliance strategy. Serving the television industry for three decades, Chyron Corporation (OTCBB:CYRO) 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 on- and off-line content creation software, 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. , clip and still store products, signal distribution systems, master control switchers, broadcast automation and media management. For more information about Chyron products and services, please visit the company Web site at www.chyron.com. All trademarks are held by their respective companies.
CHYRON CORPORATION
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands except per share data)
Three Months Ended
June 30,
2002 2001
---- ----
Net sales $10,297 $13,226
Gross profit 5,269 4,928
Operating expenses:
Selling, general & administrative 5,040 8,173
Research & development 1,004 1,478
Restructuring and other unusual charges -- 8,303
------- --------
Total operating expenses 6,044 17,954
------- --------
Operating loss (775) (13,026)
Interest and other expense, net 212 499
------- --------
Net loss $(987) $(13,525)
======= ========
Loss per common share - basic and diluted $(.02) $(.34)
Weighted average number of common and
common equivalent shares outstanding 39,564 39,530
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
June 30, Dec. 31,
2002 2001
---- ----
Assets:
Cash and cash equivalents $2,260 $4,342
Accounts receivable, net 7,813 8,029
Inventories, net 8,832 9,081
Other current assets 761 473
------- ------
Total current assets 19,666 21,925
Non-current assets 10,709 11,974
------- ------
Total assets $30,375 $33,899
======= =======
Liabilities and shareholders' equity
(deficit):
Current liabilities $14,138 $17,559
Non-current liabilities 17,443 16,027
------- -------
Total liabilities 31,581 33,586
Shareholders' equity (deficit) (1,206) 313
------- -------
Total liabilities and shareholders'
equity (deficit) $30,375 $33,899
======= =======
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion