Chyron Reports 2002 Third Quarter Results.Business Editors MELVILLE, N.Y.--(BUSINESS WIRE)--Nov. 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 third quarter ended September September: see month. 30, 2002. Total revenue for the third quarter ended September 30, 2002 was $10.6 million as compared to $11.3 million for the same quarter last year. Revenue for the third quarter grew $0.3 million or 3% over revenue for the second quarter of 2002, representing the third consecutive quarter of revenue growth. For the second consecutive quarter and for the first nine months of the year overall, the Company was cash positive from operating activities. The Company reported a net loss for the third quarter of $0.9 million, or $0.02 per share, representing a significant improvement over the net loss of $10.1 million, or $0.25 per share, for the comparable quarter of 2001, and a slight improvement over the net loss of $1.0 million, or $0.02 per share, for the second quarter 2002. The third quarter 2001 results included $3.6 million of goodwill impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges and $3.2 million of inventory write-downs; excluding those charges, the net loss for third quarter 2001 was $3.3 million or $0.08 per share. Included in the third quarter 2002 net loss was a minimal foreign exchange gain as compared to a $0.5 million exchange gain in the third quarter of 2001 and a $0.3 million foreign exchange gain in the second quarter of 2002. The third quarter of 2001 also included a loss on sale of investments of $0.2 million. 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 third quarter were $0.2 million, representing the third consecutive quarter of positive EBITDA. This compares to an EBITDA loss of $8.8 million for the same quarter last year and a positive EBITDA of $0.2 million for the second quarter of 2002. In arriving at these EBITDA amounts, net interest of $0.6 million, $0.4 million and $0.5 million, and depreciation and amortization of $0.5 million, $0.9 million and $0.7 million, have been added back to reported net loss for the third quarter of 2002, third quarter of 2001 and second quarter of 2002, respectively. On a divisional basis, third quarter revenue for the graphics division was $4.8 million, as compared to $4.7 million for the same quarter last year and $5.9 million for the second quarter 2002. Third quarter revenue for the signal distribution and automation division was $5.8 million, as compared to $6.6 million for the same quarter last year and $4.4 million for the second quarter of 2002. 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. , Chyron Chyron may refer to:
"However, we continue to remain cautious. The outlook is still variable and difficult to predict with capital expenditure projects being delayed in a number of markets, particularly 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). . As we
reported last quarter, our expectation continues to be that the outlook
will remain relatively flat for the remainder of 2002 and the early part
of 2003. We remain encouraged by early signs that the increased pressure
to provide Digital and HD services will result in improved business in
the medium and longer term and that the recent reported increases in
advertising spending in the US will feed through to fund re-equipping
programs."Highlights for the third quarter include:
-- Chyron Pro-Bel installed the first SIRIUS router in September at Wescom Media Center. This new family of routers utilizes innovative technology, providing unprecedented flexibility. In particular it incorporates built-in analog and digital signal conversion for both video and audio signals permitting a customer to move from the analog to digital domain without incurring the additional cost of external converters.
-- Chyron Graphics announced the first sale and installation in the UK of DUET LEX at TXT.ME interactive television channel. This was both the first European sale of the DUET LEX product and also a significant success in the UK market which has not been a traditional Chyron Graphics customer.
-- Chyron Pro-Bel announced an agreement with Snell & Wilcox in which Chyron Pro-Bel's new 4U SIRIUS router will be integrated into the new HD and SD3060 switchers launched by Snell & Wilcox at the 2002 International Broadcasting Convention ("IBC2002") held in Amsterdam in September.
-- Chyron Graphics announced its appointment as a Tier 1 Developer of the Avid(R) MetaSync(TM) Developers Program and by ensuring the interoperation of Lyric Interactive with Avid's nonlinear editing systems now are able to offer a unique environment for the creation of Enhanced TV Programming.
-- The introduction of new products at IBC2002:
-- Chyron APRISA VCS -- a competitively priced and robust general-purpose video server that supports a mixed database of both DVCPRO/DVCAM and multi-bit rate MPEG-2 clips. This product extends the range of clip and still playback solutions that Chyron can now offer to the broadcaster.
-- DUET LEX -- the European launch of Chyron's powerful and affordable character generator and graphics system that includes Chyron Graphics' award winning Lyric software for stunning graphics composition. This product addresses market price-performance levels that within a very short time have made this the most successful system in the Graphics range.
-- LYRIC non-linear editor (NLE) plug-ins -- Lyric, Chyron's fully featured character generator application is now available as a plug-in for GVG NewsEdit, Avid Symphony, Avid Digital Studio, Avid Media Composer and Avid Xpress DV and provides Chyron broadcast quality solutions to a new user base.
-- Wide Area Network (WAN) Routing capability -- By combining Chyron Pro-Bel's routing and control expertise with Net Insight's proven DTM technology, Chyron Pro-Bel demonstrated full WAN fiber interconnectivity for SDI enabling the company to now offer distribution solutions over a wide area as an integrated extension of a broadcaster's routing system.
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 COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. 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 See offline. (jargon) off-line - (Or "offline") 1. Not directly connected to the computer (e.g., an off-line tape drive), or with connection suspended ("take the printer off-line"). Contrast background, on-line. 2. Not now or not here. 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 the property of their respective owners.
CHYRON CORPORATION
Condensed Consolidated Statements of Operations (Unaudited)
(Dollars in thousands except per share data)
Three Months Ended
September 30,
2002 2001
------------- -------------
Net sales $10,601 $11,341
Gross profit 5,440 1,380
Operating expenses:
Selling, general & administrative 4,778 6,496
Research & development 1,013 1,216
Goodwill impairment -- 3,595
------------- -------------
Total operating expenses 5,791 11,307
------------- -------------
Operating loss (351) (9,927)
Interest and other expense, net 556 130
------------- -------------
Net loss $(907) $(10,057)
============= =============
Loss per common share - basic and diluted $(.02) $(.25)
Weighted average number of common
and common equivalent shares
outstanding (thousands) 39,564 39,564
Condensed Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)
September 30, December 31,
2002 2001
------------- -------------
Assets:
Cash and cash equivalents $2,045 $4,342
Accounts receivable, net 6,349 8,029
Inventories, net 9,168 9,081
Other current assets 507 473
------------- -------------
Total current assets 18,069 21,925
Non-current assets 10,251 11,974
------------- -------------
Total assets $28,320 $33,899
============= =============
Liabilities and shareholders'
equity (deficit):
Current liabilities $13,444 $17,559
Non-current liabilities 16,988 16,027
------------- -------------
Total liabilities 30,432 33,586
Shareholders' equity (deficit) (2,112) 313
------------- -------------
Total liabilities and
shareholders' equity (deficit) $28,320 $33,899
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