Chyron Reports 2003 Second Quarter Results.Business Editors MELVILLE, N.Y.--(BUSINESS WIRE)--Aug. 7, 2003 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 its financial results for the second quarter ended June June: see month. 30, 2003. Total revenue for the second quarter ended June 30, 2003 was $10.0 million, a decrease of $0.3 million or 3%, as compared to $10.3 million for the same quarter last year, and a decrease of $0.9 million or 8% over first quarter 2003 revenue of $10.9 million. For the first six months of 2003, total revenue was $20.9 million, an increase of $0.5 million or 3% as compared to $20.4 million for the first six months of last year. The Company reported a net loss for the second quarter of $0.4 million, or $0.01 per share, as compared to a net loss of $1.0 million, or $0.02 per share, for the second quarter of 2002. The Company had a net profit of $0.1 million, or $0.00 per share on a rounded basis, for the first quarter of 2003. Included in the second quarter 2003 results was a foreign exchange gain of $0.3 million as compared to a $0.3 million exchange gain in the second quarter of 2002 and a $0.1 million foreign exchange loss in the first quarter of 2003. For the first six months of 2003 the Company reported a net loss of $0.3 million, or $0.01 per share, as compared to a net loss of $1.8 million, or $0.05 per share, for the first six months of last year. The first six months of 2003 included a $0.2 million loss on the write down of a marketable security marketable security A security that may be resold by one investor to another. Most securities are marketable; they develop secondary markets for trading. Also called negotiable security. in the first quarter. 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. for the second quarter of 2003 was $0.1 million, as compared to an operating loss of $0.8 million for the second quarter of 2002 and 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 $0.9 million for the first quarter of 2003. Higher gross margins of 54% in the second quarter of 2003 as compared to 51% in the same quarter last year and lower 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. in the second quarter of 2003 as compared to the second quarter of 2002 contributed to the improvement in operating results for second quarter of 2003 over the second quarter of 2002. For the first six months of 2003 the Company reported an operating profit of $0.8 million, as compared to an operating loss of $0.9 million for the first six months of 2002. The Company generated cash of $0.8 million from operating activities, and used cash of $0.9 million for repayment of debt, resulting in a net decrease of $0.1 million in cash for the second quarter of 2003. For the first six months of 2003 the Company generated cash of $1.7 million from operating activities, used $0.1 million for purchases of equipment and used $1.2 million for repayment of debt, resulting in an increase in cash of $0.4 million. As a result, the Company's balance of cash, cash equivalents and restricted cash, increased from $2.2 million at the beginning of the year to $2.6 million at the end of the second quarter. Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. 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. cycle in the U.S., whereas internationally the near-term outlook for our business remains challenging due to depressed economic conditions in the major European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. economies." 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 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 the property of their respective owners.
CHYRON CORPORATION
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands except per share data)
Three Months Six Months
Ended Ended
June 30, June 30,
2003 2002 2003 2002
-------- -------- -------- --------
Net sales $10,005 $10,297 $20,909 $20,365
Gross profit 5,399 5,269 11,618 10,807
Operating expenses:
Selling, general & administrative 4,377 5,040 8,625 9,655
Research & development 1,149 1,004 2,209 2,058
-------- -------- -------- --------
Total operating expenses 5,526 6,044 10,834 11,713
-------- -------- -------- --------
Operating income (loss) (127) (775) 784 (906)
Interest and other expense, net 288 212 1,114 901
-------- -------- -------- --------
Net profit (loss) $ (415) $ (987) $ (330) $(1,807)
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Income (loss) per common share
- basic and diluted $ (.01) $ (.02) $ (.01) $ (.05)
Weighted average shares outstanding
- basic and diluted 39,652 39,564 39,615 39,564
Condensed Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)
June December
30, 31,
2003 2002
-------- --------
Assets:
Cash and cash equivalents $ 1,585 $ 1,217
Restricted cash 1,000 1,000
Accounts receivable, net 6,766 6,827
Inventories, net 7,963 8,668
Other current assets 939 712
-------- --------
Total current assets 18,253 18,424
Non-current assets 8,792 9,563
-------- --------
Total assets $27,045 $27,987
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Liabilities and shareholders'
deficit:
Current liabilities $14,340 $15,885
Non-current liabilities 15,010 14,465
-------- --------
Total liabilities 29,350 30,350
Shareholders' deficit (2,305) (2,363)
-------- --------
Total liabilities and
shareholders' deficit $27,045 $27,987
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