Diamond Multimedia announces first quarter results.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)--April 18, 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 ) today reported first quarter revenue of $80,276,000, a 59 percent increase from last year s first quarter of $50,450,000. 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. was $11,697,000, a 26 percent increase from the same period in 1994 of $9,272,000. Net income per share increased from $.27 to $.28 in the current quarter. The Company incurred interest expense of $1,467,000 in the current quarter compared with interest income of $98,000 in the same period of the prior year. Due to the significant interest charge, lower gross margins, and the accretion The act of adding portions of soil to the soil already in possession of the owner by gradual deposition through the operation of natural causes. The growth of the value of a particular item given to a person as a specific bequest under the provisions of a will between the of dividends on the 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. , earnings per share increased by only $.01. Net income increased 10 percent to $6,138,000 over last year s first quarter of $5,577,000. The current quarter s revenue increased by 33 percent from the prior quarter s revenue of $60,572,000 and operating income grew 29 percent from the prior quarter s operating income of $9,063,000. Net income per share increased by eight percent from the prior quarter s $.26. On April 12, 1995 the Company s initial public offering was declared effective pursuant to which the Company sold 7,475,000 shares of common stock, including the underwriters over-allotment, 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). to the Company of approximately $117,000,000 after deduction deduction, in logic, form of inference such that the conclusion must be true if the premises are true. For example, if we know that all men have two legs and that John is a man, it is then logical to deduce that John has two legs. of underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. discounts and estimated offering expenses. The offering is expected to close on April 20, 1995. The majority of the proceeds of the offering will be used to repay all of the Company s senior debt and subordinated promissory notes promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. and to redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. the Company s preferred stock. The balance of the proceeds (approximately $39,000,000) will be added to working capital. 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. with offices in Japan, Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). and the United Kingdom, Diamond develops, manufactures and markets multimedia add-in subsystems for IBM-compatible and Power PC-based personal computers. -0-
Diamond Multimedia Systems Inc.
Consolidated Statements of Income
(in thousands, except per share amounts)
Three months ended
(unaudited)
March 31, March 31,
1995 1994
Net sales $ 80,276 $ 50,450 Cost of sales 59,591 36,189 Gross profit 20,685 14,261 Research and development 1,987 656 Selling, general and administrative 7,001 4,333 Total operating expenses 8,988 4,989 Income from operations 11,697 9,272 Interest income (expense), net (1,467) 98 Income before provision for taxes 10,230 9,370 Provision for income taxes 4,092 3,793 Net income $ 6,138 $ 5,577 Accretion for dividends on mandatorily redeemable preferred stock (292) --- Net income available for common stockholders $ 5,846 $ 5,577 Common shares and equivalents 20,900 20,900 Net income per share 28 cents 27 cents
Diamond Multimedia Systems Inc.
Condensed Consolidated Balance Sheets
Pro-forma(1)
Dec. 31, March 31, March 31,
1994 1995 1995
(unaudited) (unaudited)
Current assets: Cash and short-term investments $ 72,922 $ 16,033 $ 55,033 Accounts receivable 20,462 25,826 25,826 Inventories 18,572 22,593 22,593 Deferred taxes and other current assets 7,222 7,926 7,926 Total current assets 119,178 72,378 111,378 Fixed assets, net 1,676 2,813 2,813 Total assets 120,854 75,191 114,191 Current liabilities: Notes payable, current 82,664 4,500 --- Trade accounts payable and other accrued liabilities 30,488 41,230 41,230 Income taxes payable 310 3,883 3,883 Total current liabilities 113,462 49,613 45,113 Notes payable, long-term --- 10,500 --- Obligations under capital leases, long-term --- 851 851 Subordinated promissory notes payable 34,167 34,167 --- Total liabilities 147,629 95,131 45,964 Mandatory redeemable preferred stock 29,174 29,466 --- Stockholders' equity (deficit) (55,949) (49,406) 68,227 Total liabilities and stockholders' equity (deficit) $120,854 $ 75,191 $114,191 (1) Reflects proceeds of approximately $117,000,000 after underwriting discounts, commissions and expenses from the company's initial public offering which will be used to repay the notes payable, subordinated promissory notes, and mandatorily redeemable preferred stock. CONTACT: Diamond Multimedia Systems Inc. Kimberley Kimberley, geographical area, Australia Kimberley, geographical area, c.139,000 sq mi (360,010 sq km), Western Australia, NW Australia. The Kimberley Goldfield was the site (1882) of the first major Western Australian gold strike. Stowe, 408/325-7204 |
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