Videonics reports results for third quarter; net income from operations up 30 percent over prior year.CAMPBELL Campbell, city, United States Campbell, city (1990 pop. 36,048), Santa Clara co., W Calif., in the fertile Santa Clara valley; founded 1885, inc. 1952. , Calif.--(BUSINESS WIRE)--Oct. 26, 1995--Videonics 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 :VDNX) today announced financial results for its third quarter ended Sept. 30, 1995. Revenues for the third quarter were $8.7 million, compared to the $8.9 million reported in the third quarter a year ago. Net income for the third quarter, excluding a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge for purchased research and development, was up 30 percent to $1.6 million, from the pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income of $1.2 million reported in the third quarter a year ago. The company reported earnings per share, excluding a one-time charge for purchased research and development, of $0.27 for the third quarter on 5.81 million shares, compared with pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. per share of $0.28 on 4.27 million shares in the third quarter a year ago. The acquisition of Nova Systems resulted in a one-time charge for purchased research and development of $0.21 per share. Including this one-time charge, net income for the third quarter was $0.06 per share. For the nine months ended Sept. 30, 1995, revenues were $25.4 million, up 15 percent from the $22.0 million reported a year earlier. Net income for the nine month period, excluding a one-time charge for purchased research and development, was up 93 percent to $4.1 million or $0.71 per share, compared with the pro forma net income of $2.1 million or $0.50 per share, calculated a year ago on fewer shares. For the third quarter, gross profit as a percent of revenue was 53 percent, the highest in the company's history. R&D spending was 7.8 percent, as the company continued to invest in new product development. The company's balance sheet remains strong, with cash, cash equivalents and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has of $11.1 million, at Sept. 30, 1995. "We are very pleased with our third quarter profitability," stated Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. D'Addio, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Videonics. "Excluding the one-time charge for purchased research and development, the company's operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: of 26 percent, pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern margin of 28 percent and net income of 18 percent are each record amounts in their respective categories. These results are indicative of our concentration on the bottom line." "As we look ahead to 1996, we see continued market growth. We believe our innovative product offerings, our strong customer and distributor relationships, our worldwide brand awareness, and our technology and marketing expertise position us well for significant growth next year and beyond," D'Addio said. Effective Sept. 7, 1995, the company acquired Nova Systems for approximately $4.8 million. Nova Systems is a leading developer and manufacturer of audio and video signal processing See DSP. equipment used in the broadcast, cable, and video conferencing See videoconferencing. (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. markets. The acquisition has been accounted for as a purchase transaction and the results of operations of Nova Systems have been included with those of the company since Sept. 7, 1995, the date the purchase was consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. . The acquisition of Nova Systems resulted in a one-time charge of approximately $2.0 million related to purchased research and development in process. The company also announced that it has experienced a delay in its latest product offering, the PowerScript Character Generator (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. . This product is now expected to begin shipping in beta test A test of new or revised hardware or software that is performed by users at their facilities under normal operating conditions. Beta testing follows alpha testing. Vendors of packaged software often offer their customers the opportunity of beta testing new releases or versions, and the quantities late this year. Videonics is a leading designer of affordable, high-quality, digital video post-production Post-production occurs in the making of audio recordings, films/movies, photography and digital art, videos and television programs. It is the general term for all stages of production occurring after the actual recording and ending with the completed work. equipment. Videonics' products are used by videographers, business, industry, education and videophiles; they are also used in the broadcast, cable, video presentation and video conferencing markets. The company manufactures standalone stand·a·lone adj. Self-contained and usually independently operating: a standalone computer terminal. and personal-computer-based hardware and software products that edit and mix raw video footage, and add special effects special effects, in motion pictures, cinematographic techniques that create illusions in the audience's minds as well as the illusions created using these techniques. and titles. Products include edit controllers, video and audio mixers, video processors, character generators, multimedia software, frame synchronizers A frame synchronizer is a device used in live television production to match the timing of an incoming video source to the timing of an existing video system. They are often used to "time in" consumer video equipment to a professional system but can be used to stabilize any video. , time base correctors, sync generators A device that supplies synchronization signals to a series of cameras to keep them all in phase. , transcoders, distribution amplifiers In electronics, a distribution amplifier is a device that accepts a single input signal and provides this same signal to multiple isolated outputs. These devices are important in audio electronics because they allow an audio signal to be distributed to multiple destinations and routing switchers. The company has its headquarters in Campbell, Calif. Its stock is traded on the NASDAQ National Market System under the symbol VDNX. Further information on Videonics may be obtained from the company's SEC filings, or by contacting the company directly. -0-
Videonics Inc.
Statement of Operations
(in thousands, except per share data)
(unaudited)
Quarter Ended Nine Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1995 1994 1995 1994
Net revenues $8,691 $8,929 $25,449 $22,045
Cost of revenues 4,111 5,182 12,913 13,890
----- ----- ------ ------
Gross profit 4,580 3,747 12,536 8,155
----- ----- ------ ------
Operating expenses:
Research and development 681 361 2,051 925
Sales and marketing 1,351 1,187 3,722 3,058
General and administrative 299 248 894 632
Charge for purchased R&D 1,965 -- 1,965 --
Total operating expenses 4,296 1,796 8,632 4,615
----- ----- ----- -----
Operating income 284 1,951 3,904 3,540
Other income (expense),
net 156 (20) 648 (116)
----- ----- ----- -----
Income before income taxes 440 1,931 4,552 3,424
Provision for income taxes 108 734 (A) 1,670 1,301 (A)
----- ----- ----- -----
Net income $ 332 $1,197 (B) $ 2,882 $ 2,123 (B)
Net income per share $ 0.06 $ 0.28 (B) $ 0.50 $ 0.50 (B)
Net income excluding charge
for purchased R&D $1,550 $1,197 (B) $ 4,100 $ 2,123 (B)
Net income per share
excluding charge for
purchased R&D $ 0.27 $ 0.28 (B) $ 0.71 $ 0.50 (B)
Weighted average shares 5,813 4,269 5,780 4,251
(A) The 1994 provision for income taxes have been calculated using a 38% tax rate. These are pro forma tax provisions as the company was a Subchapter S corporation prior to its Initial Public Offering. Actual taxes incurred by the company during the third quarter of 1994 and for the nine months ended Sept. 30, 1994 were $29 and $38 respectively. (B) The 1994 net income amounts are pro forma net income based on a 38% tax rate, see (A) above. Actual net income, based on the company's S corporation tax status, for the third quarter of 1994 and for the nine months ended Sept. 30, 1994 was $1,899 and $3,386 respectively. Actual net income per share was $0.44 and $0.80 for those same periods.
Videonics Inc.
Balance Sheets
(in thousands)
(unaudited)
Sept. 30, Dec. 31,
1995 1994
Current assets:
Cash and cash equivalents $ 6,579 $16,493
Marketable securities 4,508 --
Accounts receivable, net 4,670 2,005
Inventories 5,146 2,075
Deferred income taxes 1,423 650
Prepaid income taxes 281 --
Prepaid and other current assets 251 47
Total current assets 22,858 21,270
------ ------
Property and equipment, net 1,179 999
Other assets 8 10
Intangible assets, net 2,759 --
Total assets $26,804 $22,279
Current liabilities:
Notes payable $ 1,000 --
Accounts payable 1,650 $ 1,669
Accrued expenses 917 1,207
Total current liabilities 3,567 2,876
----- -----
Shareholders' equity
Common stock 19,411 18,459
Retained earnings 3,826 944
Total shareholders' equity 23,237 19,403
------ ------
Total liabilities and
shareholders' equity $26,804 $22,279
CONTACT: Videonics, Inc. Michael D'Addio, 408/866-8300 or Stapleton Stapleton may refer to: Places United Kingdom
Deborah Stapleton, 415/988-9207 |
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