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COMMODORE ANNOUNCES SECOND QUARTER RESULTS

 NEW YORK, Feb. 4 /PRNewswire/ -- Commodore International Limited (NYSE: CBU) today reported a net loss of $77.2 million, or $2.33 per share on sales of $237.7 million for the second fiscal quarter ended Dec. 31, 1992.
 This compares with earnings of $40.1 million, or $1.18 per share on sales of $371.6 million in the year-ago quarter.
 For the six months ended Dec. 31, 1992, the net loss was $96.0 million, or $2.90 per share compared with net income of $45.4 million, or $1.35 per share in the prior year. Sales for the six months were $396.3 million compared with $575.7 million in the year-ago period.
 These results reflect a reserve for severance costs and restructuring charges related to a consolidation of manufacturing operations through the cessation of manufacturing in Hong Kong and Germany and the transfer of those operations to a new facility in the Philippines. A substantial reserve was also established to write down inventory to estimated net realizable value due in large part to the launch of new products. Revenues and gross profit were also negatively affected by special pricing and promotional allowances given to certain major customers to stimulate sales in the December quarter. The total impact of the inventory reserve, manufacturing restructuring and special pricing and promotional allowances increased the net loss for the December quarter by approximately $50 million.
 Overall unit sales of Commodore's Amiga computers for the December quarter declined, but unit volume increased significantly from the prior year in the United Kingdom, France and Italy. Reflecting the prevailing economic softness, unit sales of Amiga computers in other countries were below the prior year, with Germany experiencing the most pronounced decline.
 Unit sales of PCs increased due to strong market acceptance of Commodore's new high-end PC computers. However, sales of Commodore's ten year old entry level C64 computer declined dramatically in the quarter, especially in Germany and Eastern Europe. Major PC competitors reduced PC prices significantly worldwide. To maintain its market position, Commodore reduced PC and Amiga prices with a corresponding adverse effect on profitability compared with the prior year.
 Currency exchange rates had a significant adverse effect on sales and profitability in the December quarter. With the sharp weakening of certain major European currencies, especially the British pound and the Italian lira, sales for the December quarter were approximately $35 million less than they would have been if the September quarter exchange rates had been in effect. Most of the adverse effect on sales was also reflected in net income. Sales for the December quarter were $15 million less than they would have been if the prior year December quarter exchange rates had been in effect, with most of this impact also being reflected in net income.
 During the December quarter the Company launched two new products with the next generation of Amiga technology, the A1200 for the consumer market and the A4000 for high-end professional applications. The introduction of the A1200, which features greatly enhanced performance, graphics and color, was exceptionally well received, as available supply sold quickly.
 Irving Gould, Chairman and Chief Executive Officer, stated: "We are extremely disappointed with our results for the first six months of this fiscal year. We have taken and will continue to take aggressive steps to reduce costs. As a result of the restructuring of manufacturing operations and a Company-wide effort to reduce costs, worldwide employment has been reduced by one third. We will continue to introduce new multimedia products based on the latest Amiga technology to stimulate volume and, at the same time, maintain our efforts to streamline the organization to achieve the lowest possible cost structure."
 Commodore International Limited through its subsidiaries around the world is a manufacturer and marketer of computer-based products for professionals and consumers. The Company's major product group is Amiga multimedia computers. In addition the Company has a range of PC compatible computers and the entry level Commodore 64.
 COMMODORE INTERNATIONAL LIMITED AND SUBSIDIARIES
 Condensed Consolidated Balance Sheets
 (Unaudited; $000's)
 Dec. 31 1992 1991
 Cash and Investments $ 55,200 $119,800
 Accounts Receivable, Net 231,800 303,600
 Inventories 185,100 217,800
 Other Current Assets 11,600 10,200
 Total Current Assets 483,700 651,400
 Fixed and Other Assets 104,600 109,000
 $588,300 $760,400
 Current Debt $ 90,200 $ 60,200
 Other Current Liabilities 225,500 266,600
 Total Current Liabilities 315,700 326,800
 Long-Term Debt and Other 64,300 86,700
 Shareholders' Equity 208,300 346,900
 $588,300 $760,400
 COMMODORE INTERNATIONAL LIMITED AND SUBSIDIARIES
 Condensed Consolidated Statement of Operations
 (Unaudited; $000's)
 Periods ended Three Months Six Months
 Dec. 31 1992 1991 1992 1991
 Net Sales $237,700 $371,600 $396,300 $575,700
 Cost of Sales 252,800 251,000 386,200 398,000
 Gross Profit (Loss) (15,100) 120,600 10,100 177,700
 Operating Expenses 52,800 73,100 90,300 119,500
 Operating Income (Loss) (67,900) 47,500 (80,200) 58,200
 Interest Expense, Net 4,800 4,500 8,900 8,400
 Other Expense 4,000 800 6,200 1,800
 Income (Loss) Before
 Income Taxes (76,700) 42,200 (95,300) 48,000
 Provision for
 Income Taxes 500 2,100 700 2,600
 Net Income (Loss) $(77,200) $ 40,100 $(96,000) $ 45,400
 Earnings Per Share: $(2.33) $1.18 $(2.90) $1.35
 Average Shares
 Outstanding 33,071,000 34,034,000 33,059,000 33,605,000
 /delval/
 -0- 2/4/93
 /CONTACT: Ronald B. Alexander, chief financial officer and secretary or Anthony D. Ricci, vice president and controller of Commodore International Limited, 215-431-9100/
 (CBU)


CO: Commodore International ST: Pennsylvania IN: CPR SU: ERN

MP -- PH026 -- 3065 02/04/93 14:15 EST
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Date:Feb 4, 1993
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