Printer Friendly

nVIEW CORPORATION REPORTS YEAR-END AND FOURTH QUARTER RESULTS FOR 1992

 NEWPORT NEWS, Va., Feb. 15 /PRNewswire/ -- nVIEW Corporation (NASDAQ-NMS: NVUE) today announced its financial results for the year and fourth quarter ended Dec. 31, 1992.
 The company experienced a net loss of $2.4 million or $.48 per share for 1992, compared with a net income of $1.3 million or $.36 per share for 1991. For the fourth quarter of 1992, the company had a net loss of $2.2 million or $.44 per share, compared with a net income of $517 thousand or $.12 per share for the same period in 1991 and a net loss of $282 thousand or $.06 per share for the third quarter of 1992. Per share earnings for 1992 reflect additional shares outstanding resulting from the sale of common stock in a public offering in January, 1992.
 The principal factors contributing to the net losses for the year and fourth quarter of 1992 were:
 -- Slower growth in revenue than required to offset the higher level of expenses.
 -- Increased inventory reserves to provide for potential future reduction in inventory value.
 -- A one-time charge resulting from a change in the method of accounting for inventory, from the average cost method to the first-in, first-out (FIFO) method.
 -- Additional operation expenses related to the research, development and marketing of five new products during the year and to the building and maintenance of a larger infrastructure to produce, service and support the expanded product line.
 -- Legal fees associated with a shareholder suit filed in August of 1992.
 -- An increase in the accounts receivable reserve to provide for potential nonpayment by customers.
 Commenting on the company's performance in 1992, nVIEW's President and Chief Operating Officer William M. Donaldson stated, "Although we are disappointed by the fact that we were unable to develop sufficient revenues during the year to offset the higher levels of expenses, we are pleased that nVIEW successfully achieved several key objectives in 1992, which were instrumental in strengthening the company's ability and capacity to operate in our rapidly changing industry."
 Sales for 1992 were $27.9 million, am increase of 66 percent over the prior year's total of $16.8 million. For the fourth quarter of 1992, sales of $6.8 million were 6 percent below sales of $7.2 million for the third quarter of 1992. European sales, which slowed appreciably beginning in the second quarter of 1992, improved slightly during the second half of the year and totalled $6.3 million for 1992, an increase of 34 percent over the prior year.
 As a result of the slower sales growth, the company's inventory of certain component, particularly its liquid crystal display (LCD) panels, exceeded the level necessary to meet anticipated demand. The company expects the market price of these components to decrease in the near future. To reflect the potential loss resulting from the reduction in the value of these components, the company increased inventory reserves by $955 thousand and $830 thousand for 1992 and for the fourth quarter, respectively. In an unrelated action, the company changed its method of inventory valuation to the FIFO method from the average cost method in order to more accurately reflect the company's inventory flow. This action resulted in a one-time charge of $379 thousand in the fourth quarter of 1992.
 The increase in the inventory reserves and the one-time charge for the change in the method of accounting for inventory resulted in an increase in the cost of goods sold for the year and fourth quarter of 1992. As a result, the gross profit margin declined to 27 percent for 1992 from 35 percent for 1991 and to 12 percent for the fourth quarter of 1992 from 35 percent for the same quarter of 1991 and from 36 percent for the third quarter of 1992.
 Operating expenses for 1992 were $10.6 million, an increase of 165 percent over the $4.0 million for 1991. For the fourth quarter of 1992, operating expenses were $3.4 million, an increase of 127 percent over the $1.5 million for the same quarter of 1991 and 13 percent above the $3.0 million for the third quarter of 1992. The increases in operating expenses reflected additional costs associated with the research, design, development and, particularly, the marketing, service and support of a significantly expanded product line in 1992. Operating expenses for the year and for the fourth quarter of 1992 also included legal fees of $420 thousand and $266 thousand, respectively, for expenses associated with a shareholder lawsuit. In addition, operating expenses for 1992 included increases to the accounts receivable reserve of $432 thousand for the year and $300 thousand for the fourth quarter.
 "nVIEW has proven that it has the ability to design and manufacture the highest quality line of projection products in its industry, having received 11 industry awards (five of which were awarded in 1992), the most recent being the coveted Critics Choice Award from MacUser Magazine for the Best Display Product in 1992," Mr. Donaldson added. "Our challenge going forward is to apply all we have learned and accomplished over this past year to the implementation of an effective marketing and sales plan that will energize our sales performance in 1993. To date, a number of strategic actions have been initiated, including the reorganization and centralization of the sales and marketing functions under the leadership of recently appointed Vice President for Sales and Marketing, John Purner. Additional initiatives are currently underway with more scheduled for later in the year. Combining this more aggressive sales and marketing program with our expanded line of award winning products, coupled with the added strength and flexibility of over $11 million of cash and no long-term debt, we believe nVIEW is well positioned to return to profitability in 1993."
 nVIEW Corporation, headquartered in Newport News, Virginia, with an additional sales and service office in Luxembourg, is a leading manufacturer of projection products, utilizing liquid crystal display technology, which are sold through a worldwide network of dealers and distributors.
 nVIEW CORPORATION
 Financial Summary
 Periods ended
 Dec. 31 Three Months Twelve Months
 1992 1991 1992 1991
 Sales $ 6,775,331 $ 6,360,378 $ 27,921,693 $ 16,790,598
 Net income
 (loss) (2,172,496) 516,857 (2,367,475) 1,310,561
 Average shares 4,918,936 4,276,900 4,893,956 3,634,939
 Earnings (loss)
 per share ($0.44) $0.12 ($0.48) $0.36
 Periods ended
 Dec. 31 1992 1991
 Total assets $28,702,215 $11,625,264
 Current liabilities 5,000,550 3,078,617
 Shareholder's equity 23,701,665 8,546,647
 -0- 2/15/93
 /CONTACT: James A. Kirkpatrick, corporate communications of nVIEW Corporation, 804-873-1354/
 (NVUE)


CO: nVIEW Corporation ST: Virginia IN: SU: ERN

TM -- NY040 -- 6645 02/15/93 19:42 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 15, 1993
Words:1129
Previous Article:ABITIBI-PRICE INTRODUCES THREE NEW DIRECTORS
Next Article:METALL PROPOSES TO ACQUIRE MINNOVA MINORITY
Topics:


Related Articles
nVIEW CORPORATION ANNOUNCES RECORD SALES AND EARNINGS FOR THE FOURTH QUARTER AND THE YEAR
NVIEW FIRST QUARTER EARNINGS UP SIGNIFICANTLY
SIX MONTHS EARNINGS AFFECTED BY SECOND QUARTER LOSS, REPORTS nVIEW
NVIEW TO INTRODUCE NEW PRODUCT AT MACWORLD; LCD PROJECTION PANEL BRINGS FULL COLOR TO SCHOOLS AND OFFICES
nVIEW CORPORATION ANNOUNCES THIRD QUARTER RESULTS
nVIEW CORPORATION REPORTS FIRST QUARTER RESULTS
nVIEW CORPORATION ANNOUNCES ORGANIZATIONAL CHANGES
nVIEW CORPORATION REPORTS YEAR-END AND FOURTH QUARTER RESULTS FOR 1993
nVIEW CORPORATION TAKES STEPS TOWARD PROFITABILITY IN 1996
nVIEW Corporation Reports Third Quarter Earnings

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters