Chyron Reports Improved 2002 First Quarter Results.Business Editors MELVILLE, N.Y.--(BUSINESS WIRE)--May 15, 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 first quarter ended March 31, 2002. Total revenue for the quarter ended March 31, 2002 was $10.1 million consisting of $4.8 million in revenue from graphics division and $5.3 million in revenue from signal distribution and automation division. Total revenue for the same quarter last year was $10.7 million, with $4.2 million from the graphics division, $6.3 million from the signal distribution and automation division, and $0.2 million from the new media products 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. Total revenue for the fourth quarter of 2001 was $10.9 million consisting of $4.8 million in revenue from graphics division and $6.1 million in revenues from the signal distribution and automation division. The Company produced a significant improvement in operations for the quarter, reporting an 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 first quarter of $0.1 million as compared to an operating loss of $6.5 million for the comparable quarter of 2001 and an operating loss of $2.6 million for the fourth quarter of 2001 (inclusive of inclusive of prep. Taking into consideration or account; including. a $0.6 million restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. ). Higher gross margins on product sales, 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. resulting primarily from the effect of the Company's cost cutting and 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). efforts implemented in 2001, were the primary reasons. While the Company reported a net loss for the first quarter of $0.8 million, or $0.02 per share, compared to a net loss of $7.3 million, or $0.19 per share, for the comparable quarter of 2001 and a net loss of $2.8 million or $0.08 per share for the fourth quarter of 2001, 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 first quarter was a profit of $0.4 million as compared to a loss of $5.4 million for the first quarter of 2001 and a loss of $1.9 million for the fourth quarter of 2001. In arriving at these EBITDA amounts, net interest of $0.6 million, $0.3 million and $0.3 million and depreciation and amortization of $0.6 million, $1.6 million and $0.6 million, have been added back to reported net loss for the first quarter of 2002, first quarter of 2001 and fourth quarter of 2001, respectively. Included in the first quarter net loss was a foreign exchange loss of $0.1 million as compared to a foreign exchange loss of $0.5 million in the first quarter of 2001 and a foreign exchange loss of $0.1 million in the fourth quarter of 2001. "I am very pleased with the progress that Chyron Chyron may refer to:
A legal commitment in which a bank promises to lend a customer up to a specified maximum amount during a specified period. revolving credit agreement See line of credit. . We believe our cash on hand and revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. availability will be sufficient to meet our operating cash needs for 2002 provided we meet our planned results of operations for the balance of the year. "Our expectation is that the year will continue to be relatively flat with the USA improving towards Q4 but the European economic climate not improving until mid 2003. We are focused on continuing to improve our competitive position as evidenced by the number of products launched at the National Association of Broadcasters (NAB) trade show in April and the two best of show awards we received there. We continue to work to further improve our performance as the year progresses. "I am also very pleased to be able to formally announce the appointment of Jerry Kieliszak as Senior Vice President and Chief Financial Officer. Jerry joined us in mid-March to replace G. R. Sam Seraphim seraphim six-winged angels of the highest order, distinguished by their zeal and love. [O.T.: Isaiah 6:2; Benét, 915] See : Angel who had been serving as interim CFO See Chief Financial Officer. . Jerry has strong credentials CREDENTIALS, international law. The instruments which authorize and establish a public minister in his character with the state or prince to whom they are addressed. If the state or prince receive the minister, he can be received only in the quality attributed to him in his credentials. , including a background in the software industry and will add significantly to the strength of the management team." Other highlights for 2002 First Quarter: -- Released important product updates including: -- Aprisa(R) Stillstore software version 2.2, featuring MOS Protocol, to enable newsroom journalists and control room operators to dynamically control the Aprisa family of still and video graphic clip servers within the Avid(R) iNEWS(TM) newsroom computer system; -- Lyric(R) software version 3.1, featuring MOS Protocol, Clip player and mapping of 2D text onto 3D objects. -- Closed substantial orders in the International market for Chyron Graphics products including an order from Televisio de Catalunya, Barcelona, Spain, for 20 Duet(R) systems (a combination of Duet SD and Duet LE) to replace all of its existing character generators for production, post-production, transmission and news. -- Chosen by Hallmark to provide Eclipse routers for their Crown Media International Playback Center in Denver, Colorado. -- Provided the Canadian Broadcasting Corporation with Duet graphics and animation systems and Aprisa 250 integrated still and clip stores for its graphics coverage of the 2002 Winter Olympics in Salt Lake City. -- Created an "Office of the Chairman," consisting of Wesley Lang, non-executive Chairman of the Board of Directors, Roger Henderson, President and Chief Executive Officer and Michael Wellesley-Wesley, Chairman of the Executive Committee, in order to focus on and prioritize rebuilding of shareholder value. 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, 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 (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
March 31,
2002 2001
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Net sales $10,068 $10,685
Gross profit 5,538 4,708
Selling, general & administrative 4,615 9,280
Research & development 1,054 1,963
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Total operating expenses 5,669 11,243
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Operating profit (loss) (131) (6,535)
Interest and other expense, net 689 771
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Net loss $(820) $(7,306)
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Loss per common share - basic and diluted $ (0.02) $(0.19)
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Weighted average number of common and
common equivalent shares outstanding 39,564 39,152
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
March 31, December 31,
2002 2001
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Assets:
Cash and cash equivalents $1,838 $4,342
Accounts receivable 6,688 8,029
Inventories 9,444 9,081
Other current assets 956 473
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Total current assets 18,926 21,925
Non-current assets 11,246 11,974
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Total assets $30,172 $33,899
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Liabilities and shareholders' equity:
Current liabilities $13,059 $17,559
Non-current liabilities 17,396 16,027
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Total liabilities 30,455 33,586
Shareholders' equity (283) 313
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Total liabilities and shareholders' equity $30,172 $33,899
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