TeleVideo reports 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)--March 22, 1995--TeleVideo Systems Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :TELV) Wednesday Wednesday: see week. reported results for its first fiscal quarter, 1995. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the first quarter, ended Jan. 31, 1995, were $2.6 million compared to $3.5 million for the first quarter of fiscal 1994. 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 fiscal 1995 was $633,000 compared to a loss of $706,000 in fiscal 1994. Net gain for the first quarter of fiscal 1995 was $775,000 or $0.02 per share, compared to a net loss of $390,000 or $0.01 per share, for the like period last year. The net gain of $775,000 for the first quarter of fiscal 1995 was primarily due to the sale of the Company's real property which resulted in a gain of $1.3 million. Cost of sales as a percentage of sales decreased from approximately 75.1% in fiscal 1994 to 72.3% in fiscal 1995. The decrease in cost of sales percentage and the corresponding increase in gross margin percentage for the three-month period ended Jan. 31, 1995 (an increase from approximately 24.9% to 27.7%) were primarily the results of product cost reductions negotiated with its suppliers, and shifting the production process from in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. to overseas manufacturers. "Our first quarter results clearly demonstrate the Company's strong position for accelerated growth and that we're we're Contraction of we are. we're we are moving toward a return to profitability in the near term," said Dr. K. Philip Hwang, chairman and chief executive officer of TeleVideo. "Our terminal business continues to be a key source of revenue and has enabled us to invest our resources in a strategic entry into the rapidly expanding multimedia market, which is destined des·tine tr.v. des·tined, des·tin·ing, des·tines 1. To determine beforehand; preordain: a foolish scheme destined to fail; a film destined to become a classic. 2. to be a source of increased income for TeleVideo." During the first quarter, TeleVideo created its multimedia division which will deliver a full line of graphic acceleration, 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). video playback Playback could mean:
(communications) video conferencing - A discussion between two or more groups of people who are in different places but can see and hear each other using electronic communications. products during calendar 1995. TeleVideo will target consumer, home office, corporate and OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and markets for its multimedia offerings. The Company sold its headquarters in December of 1994 for $11 million less certain expenses of sale. The Company received $5.4 million in cash upon close of escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. . An additional $5.0 million will be paid to the Company in December of 1996. Approximately $475,000 in cash will be generated as interest annually. The Company has also purchased another building for use as its new headquarters at a cost of approximately $2.0 million. During this transitional period, the Company is leasing back 40,000 square feet from the new owner of the Brokaw building until May 1995. In December 1994, the company sold its 35% interest in Kabil Electronics Co., Ltd. of South Korea to the majority owners for $1.4 million which is to be paid in installments over the 1995 calendar year. Approximately $300,000 was received in February 1995. "During the last quarter, we placed a premium on managing debt and controlling costs to enable our recent efforts in new markets," said Dr. K. Philip Hwang, chairman and chief executive officer of TeleVideo. "With the launch of our multimedia product line, we are re-engineering the company to pursue significantly more aggressive growth opportunities. Furthermore, TeleVideo is still committed to the terminal market and is introducing a new price/performance-leading model shortly." TeleVideo Systems Inc. has been a pioneer in the computer industry for 20 years and has recently refocused as a premier supplier of multimedia products. Offerings include a full range of sound boards, graphics adapters See display adapter and graphics accelerator. graphics adapter - graphics adaptor , telephony boards, PC videophone (1) (VideoPhone) A line of videophones (definition #1 below) from AT&T that were introduced in the early 1990s and later pulled off the market due to poor sales. The first models came with a price tag above $1,000, and a pair were needed. See Picturephone. solutions and full-motion video Video transmission that changes the image 30 frames per second (30 fps). Motion pictures are run at 24 fps, which is the minimum frequency required to eliminate the perception of moving frames and make the images appear visually fluid to the eye. products for the personal computer. TeleVideo is a publicly held corporation and is traded in the over-the-counter market over-the-counter market Trading in stocks and bonds that does not take place on stock exchanges. Such trading occurs most often in the U.S., where requirements for listing stocks on the exchanges are strict. . The corporate offices are located at 550 East Brokaw Road, P.O. Box 49048, San Jose, CA 95161-9048. Telephone: 408/954-8333. -0-
TELEVIDEO SYSTEMS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JAN. 31, 1995 AND JAN. 31, 1994
(in thousands, except per share amounts)
1995 1994
Net sales $ 2,599 $ 3,456 Cost of sales 1,879 2,595 Gross profit 720 861 Operating expenses: Marketing 663 723 Research and development 433 432 General and administrative 257 412 Total operating expenses 1,353 1,567 Loss from operations (633) (706) Investment gain -- -- Interest income 128 120 Other income (a) 1,281 200 Net gain (loss) before income tax 776 (386) Income taxes (1) (4) Net gain (loss) after income tax $ 775 $ (390) Net gain (loss) per share $ 0.02 $ (0.01) Average shares outstanding 44,641 44,585 (a) Including a gain of $1.3 million from the sale of the building in December 1994
TELEVIDEO SYSTEMS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
Jan. 31, Oct. 31,
1995 1994
ASSETS
Current assets: Cash and cash equivalents (including restricted cash of $1,500 in 1995 and 1994) $ 4,580 $ 2,131 Marketable securities 58 68 Accounts receivable, net 1,657 2,045 Inventories 5,455 5,757 Prepayments and other 270 458 Total current assets 12,020 10,459 Property, plant and equipment: Property, plant and equipment 4,702 16,419 Less accumulated depreciation (2,497) (6,983) Net property, plant and equipment 2,205 9,436 Investment in affiliates 644 644 Notes and interest receivable from related parties 3,901 3,506 Other assets 5,000 -- Total assets $23,770 $24,045 LIABILITIES & STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 465 $ 1,363 Accrued liabilities 1,088 1,239 Income taxes 611 611 Total current liabilities 2,164 3,213 Stockholders' equity: Common stock 446 446 Additional paid in capital 95,428 95,428 Accumulated deficit (74,268) (75,042) Total stockholders' equity 21,606 20,832 Total liabilities & stockholders' equity $ 23,770 $ 24,045 CONTACT: TeleVideo Systems Inc., San Jose Eva Surrell, 408/954-8333 |
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