Diamond Multimedia Reports Record Sales and Net Income for the Second Quarter Ended June 30, 1995.SAN JOSE San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif.--(BUSINESS WIRE)--July 19, 1995--Diamond Multimedia Systems, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : DIMD DIMD Dorland's Illustrated Medical Dictionary ) reported record sales and net income for the three and six month periods ended June 30, 1995. Revenues increased 100 percent to $95,110,000, up from second quarter 1994 revenues of $47,650,000, due in a large part to record shipments of the Stealth 64 line of multimedia accelerators. Net income was $7,794,000, an increase of 46 percent from $5,352,000 in the prior year's quarter. Earnings per share for the quarter were $0.30 on 27,115,000 shares outstanding versus $0.26 in the second quarter of 1994 on 20,900,000 shares outstanding. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 42 percent to $12,609,000, up from $8,862,000 in the second quarter of 1994. As expected, gross margins decreased as a percentage of sales as Diamond expanded lower margin European sales from 17 percent of revenues in 1994 to 28 percent of revenues in the second quarter of 1995, and industry price pressures resulted in lower margins on multimedia upgrade kits. "The decline in gross margin to 24.3 percent primarily reflects increased sales in the European markets which have historically experienced more intense pricing pressures. While price competition remains intense in Europe, we are progressing in achieving an international presence for the Diamond family of products," said Bill Schroeder For the baseball player, see . William Fredrich Schroeder (born January 9, 1971, in Eau Claire, Wisconsin) is a former American football wide receiver in the NFL. He attended Sheboygan South High School and then went on to the University of Wisconsin-La Crosse, where he starred , President and Chief Executive Officer of Diamond Multimedia. For the six months ended June 30, 1995, revenues were $175,386,000 compared with $98,100,000 for the first six months of 1994. Net income for the six months period was $13,932,000, or $0.58 per share, compared with $10,929,000, or $0.52 per share, for the same period in 1994. On April 19, 1995 the Company successfully completed an initial public offering pursuant to which it sold 7,475,000 shares of common stock at $17.00 per share, raising net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of approximately $117,000,000. The majority of the proceeds was used to repay all of the company's senior debt and subordinated promissory notes and to redeem the company's preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. . The balance of the proceeds, approximately $39,000,000, was added to working capital. During the quarter, Diamond announced several industry awards for its products, including the PC Magazine Editor's Choice, the Computer Reseller News Channel Champions Award, PC World's Best Buy Award, and the Computer Life All-Star Award. "We are extremely proud to have achieved this mark of quality and excellence for our products," said Schroeder. "We strive to provide an appropriate balance of value and performance in our products, and these awards validate our position. "We are focusing on further developing our international markets in addition to expanding our retail channel in the U.S., as evidenced by our recent agreement designating Circuit City as an authorized reseller of Diamond products. We remain optimistic about the growth of the overall multimedia products market," Schroeder concluded. Diamond Multimedia Systems, Inc. designs, manufactures, and markets high-performance multimedia solutions for the PC, PowerPC and PCI (1) (Payment Card Industry) See PCI DSS. (2) (Peripheral Component Interconnect) The most widely used I/O bus (peripheral bus). Macintosh markets. Products include graphics and multimedia accelerators, which incorporate graphics, video and MPEG (Moving Pictures Experts Group) An ISO/ITU standard for compressing digital video. Pronounced "em-peg," it is the universal standard for digital terrestrial, cable and satellite TV, DVDs and digital video recorders (DVRs). acceleration in a single subsystem. Diamond also manufactures sound cards, audio/telephony subsystems and multimedia upgrade kits for the personal computer market. Headquartered in San Jose, California San Jose (IPA: /ˌsænhoʊˈzeɪ/) is the third-largest city in California, and the tenth-largest in the United States. It is the county seat of Santa Clara County. , Diamond has marketing and technical support facilities in Tokyo, Munich and Slough (U.K). The Company's products are sold through regional, national and international distributors as well as to major computer retailers, mass merchants and OEMs worldwide. Diamond Multimedia's common stock is traded on the Nasdaq National Market System under the symbol DIMD. -0- For more information on Diamond Multimedia at no cost, please call (800) PRO-INFO. CONTACT: Diamond Multimedia Gary Filler, 408/325-7204 or FRB See Federal Reserve Board. San Francisco: Ann Trunko (general information) or Jill Inman (analyst contact), 415/986-1591 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion