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OIS OPTICAL IMAGING SYSTEMS ANNOUNCES FIRST-QUARTER OPERATING RESULTS

OIS OPTICAL IMAGING SYSTEMS ANNOUNCES FIRST-QUARTER OPERATING RESULTS
 TROY, Mich., Nov. 18 /PRNewswire/ -- OIS Optical Imaging Systems, Inc. ("OIS") (OTC: OVONC) today reported its operating results for the three months ended Sept. 30, 1991, as follows:
 Three Months Ended
 Sept. 30
 1991 1990
 (In thousands)
 Revenues
 Customer agreements $993 $1,514
 Licensing and royalties 50 279
 Other (substantially all interest) 32 54
 Total revenues $1,075 $1,847
 Total expenses $2,885 $2,438
 Net (loss) ($1,810) ($591)
 Net (loss) per share (in dollars) ($.12) ($.04)
 Revenues from customer agreements decreased 34 percent primarily due to the halting of work on the development of color flat panel displays for hand-held televisions for Samsung Electron Devices Co., Ltd. ("Samsung"). OIS and Samsung are currently in negotiations to modify the development and license agreement including the payment of past due amounts owed to OIS by Samsung. OIS also had a reduction of revenues received relating to prototypes being developed and manufactured pursuant to the transfer of amorphous silicon sensor technology to UNIPAC, and decreases in revenues recognized relating to the development and delivery of aircraft cockpit displays. Conversely, the decrease in revenues from customer agreements is net of increases which primarily resulted from revenue received from the Defense Advanced Research Projects Agency ("DARPA") for development of large area display manufacturing technology, revenues recognized from the development of a personal telecommunications product for Minolta, and revenues from the development of 6-inch-by-6-inch monochrome displays for Loral Western Development Labs ("Loral").
 Licensing and royalties revenues decreased 82 percent primarily because revenues of $241,380 were received during the three months ended Sept. 30, 1990, from an agreement which was signed with Nippon Steel Corporation for OIS amorphous silicon scanning sensor technology.
 Other revenues decreased 41 percent primarily due to decreased interest income earned, resulting from a combination of lower average short-term investment balances and lower earnings rates, and the inclusion of losses on the disposition of obsolete lab equipment which was not fully depreciated.
 Operating expenses increased 18 percent overall primarily as a result of costs related to development of 6-inch-by-6-inch monochrome displays for Loral, development and manufacturing of aircraft cockpit displays and increased sales and marketing efforts. Conversely, operating expenses included decreases which primarily resulted from the halting of work on the development of displays for Samsung, as mentioned above, and decreased internal research and development expenses which primarily resulted from research reductions which were possible as a result of the resolution, during the prior fiscal year, of specified ongoing technical programs relating to development and manufacturing of active matrix flat panel displays.
 On Nov. 4, 1991, OIS mailed to its stockholders of record (record date Oct. 24, 1991) its notice of Annual Meeting of Stockholders and Proxy Statement for an Annual Meeting that will take place on Nov. 26, 1991. The main item to consider and act upon is a proposal to approve the Stock Purchase Agreement entered into and among, OIS, Guardian Industries Corp. ("Guardian"), William Manning ("Manning") and Manning & Napier Advisors, Inc. ("Manning & Napier").
 As a result of continuing losses, OIS consumed its remaining cash resources in mid-September 1991. In order to continue operations at current levels, OIS entered into a $450,000 line of credit agreement with Guardian on Sept. 12, 1991, which was subsequently increased to $900,000 in October 1991, and $1,500,000 on Nov. 8, 1991. OIS had borrowed $313,000 and $1,087,000 from Guardian as of Sept. 30, 1991, and Nov. 8, 1991, respectively, pursuant to this line of credit.
 This line of credit will expire on Nov. 30, 1991, however, Guardian may unilaterally discontinue future borrowings at any time for any reason, and repayment of amounts owed to Guardian may be accelerated by Guardian prior to that date upon the occurrence of certain events of default which include, among others, the termination of the Stock Purchase Agreement or if any condition to Closing of the Stock Purchase Agreement becomes incapable of being fulfilled. OIS management believes that this line of credit, if fully available, will be sufficient to fund OIS' operations through Nov. 26, 1991, the scheduled date of OIS' Annual Stockholders' Meeting. All funds advanced by Guardian pursuant to the line of credit, together with accrued interest, will be credited toward the proceeds of the $10.5 million purchase price for Guardian's purchase of OIS stock, if the stockholders approve the Stock Purchase Agreement.
 -0- 11/18/91
 /CONTACT: Dr. Zvi Yaniv or Joseph Ben-Gal of OIS Optical Imaging Systems, Inc., 313-362-2738/
 (OVON) CO: OIS Optical Imaging Systems, Inc. ST: Michigan IN: CPR SU: ERN ML-SB -- DE013 -- 1380 11/18/91 11:30 EST
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Publication:PR Newswire
Date:Nov 18, 1991
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/C O R R E C T I O N -- OIS Optical Imaging Systems, Inc./

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