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GENERAL INSTRUMENT POSTS 20 PERCENT THIRD QUARTER SALES GAIN AND DOUBLING OF OPERATING INCOME

 GENERAL INSTRUMENT POSTS 20 PERCENT THIRD QUARTER SALES GAIN
 AND DOUBLING OF OPERATING INCOME
 CHICAGO, Oct. 22 /PRNewswire/ -- General Instrument Corp. (NYSE: GIC) today reported a 20 percent increase in sales and a doubling of operating income, resulting in net profit of $2 million for the quarter ended Sept. 30, 1992.
 Sales in the third quarter increased to $284 million from $236 million in the third quarter last year, while operating income increased to $33 million from $16 million. The company had net income of $2 million ($0.04 per share) for the quarter compared to a net loss of $12 million ($0.33 per share) in the third quarter of 1991.
 Donald Rumsfeld, chairman and chief executive officer, said "This was a very important quarter for General Instrument, marked by the crossover into bottom-line profitability for the first time since being acquired by Forstmann Little in 1990. Positive net income was driven both by improved operating results and reduced interest costs."
 Sales of coaxial cable and traditional distribution and fiber optic electronics to U.S. cable systems remained strong in the quarter. The VideoCipher division posted strong sales of consumer descrambler modules, and the Power Semiconductor division results reflect improved volume as well as incremental sales attributable to the acquisition of General Semiconductor Industries, Inc.'s Ireland operations, which was completed in July.
 For the nine months ended Sept. 30, 1992, sales were $777 million, a 12 percent increase over the $695 million posted for the first nine months of 1991, and operating income was $61 million, a 51 percent increase over the $41 million posted in 1991. The company's net loss before extraordinary item was reduced from $91 million ($2.51 per share) in the first nine months of 1991 to $25 million ($0.54 per share) in the comparable period this year. The company's net loss in the nine months ended Sept. 30, 1992, including the write-off of certain deferred financing costs reported as an extraordinary item, was $36 million ($.79 per share).
 Reported net income was reduced by $13 million in the 1992 third quarter and $47 million in the nine months due to required amortization of goodwill and other non-cash charges related to the 1990 acquisition.
 Several significant events occurred in recent months. These include:
 -- Three DigiCipher digital compression systems were deployed. Home Box Office, a unit of Time-Warner, is currently conducting an extensive test if DigiCipher in the United States. Other on-air tests are being conducted in Canada (Rogers Cablesystems) and Hong Kong (STAR TV) in support of equipment orders received from these customers.
 Since Sept. 28, 1992, STAR TV has been conducting a series of live demonstrations of DigiCipher capabilities in Hong Kong. STAR TV has announced plans to deploy DigiCipher in satellite delivery of premium programming using the Asia-Sat satellite.
 -- An agreement was signed with Satellite Receiving Systems (SRS) to launch new subscription services using DigiCipher. SRS's Middle East Broadcasting Channel currently provides advertiser supported Arabic programming to over 12 million consumers throughout the Middle East and Europe. The service is delivered on Arab-Sat and Eutelsat satellites, which together cover 25 countries with a combined viewing audience of 150 million television households.
 -- In September, Comcast, a major multiple system operator, Motorola and GI demonstrated the ability to deliver telephone services over cable without using local access telephone carriers. Phone calls were placed from Comcast's Philadelphia headquarters to Trenton, N.J., where GI and Motorola teamed up to transmit a call over existing cable plant to a small wireless phone. Another call was placed to London where the call traveled over existing cable plant into a customer's home, without utilizing the local telephone network in either country.
 -- General Instrument, with its partner, MIT, has two of the four all-digital systems being tested by the FCC for selection as the United States High Definition TV (HDTV) standard for broadcast television.
 Official test results for GI and MIT's first system, DigiCipher HDTV, were released in September by the Federal Communication Commission's Advanced Television Test Center in Alexandria, Va. The tests, covering picture quality and transmission, two crucial areas for determining the national HDTV standard, confirmed GI's expectations for all-digital systems in general and GI's DigiCipher system in particular.
 GI and MIT's second system, Channel Compatible DigiCipher, successfully completed testing at the Alexandria facility on Oct. 20, 1992. Channel Compatible DigiCipher was demonstrated at the Association for Maximum Service Television's (MSTV) HDTV update conference on Oct. 1, 1992. The demonstration displayed GI and MIT's unique capability to broadcast using both interlace and progressive scan techniques.
 -- The satellite TV industry's program to curtail unauthorized use of satellite delivered television programming took a major step forward as the two largest providers of satellite delivered programming shut off the authorization stream previously being received by the majority of illegally modified VideoCipher II receivers. The company has met its commitment to upgrade legitimate VideoCipher II consumers, and further programmer actions to shut off the VideoCipher II authorization stream are proceeding on schedule.
 General Instrument is a world leader in broadband transmission, distribution and access control technologies for cable, satellite and terrestrial broadcasting applications, as well as in discrete power rectifying components.
 GENERAL INSTRUMENT CORPORATION
 (unaudited -- dollars in thousands, except share data)
 Period ended Three months
 Sept. 30 1992 1991
 Net sales $ 284,270 $ 236,113
 Operating Costs and Expenses:
 Costs of sales 196,563 169,796
 Selling, general and administrative 32,652 29,745
 Research and development 16,012 13,758
 Amortization of excess of cost over
 fair value of net assets acquired 6,471 6,471
 Total operating costs and expenses 251,698 219,770
 OPERATING INCOME 32,572 16,343
 Other income (expense) (266) 21
 Interest expense, net (25,475) (30,361)
 Gain (loss) from divestiture
 businesses and assets --- 4,899
 INCOME (LOSS) BEFORE INCOME TAXES
 AND EXTRAORDINARY ITEM 6,831 (9,098)
 Provision for income taxes (4,507) (2,722)
 INCOME (LOSS) BEFORE
 EXTRAORDINARY ITEM 2,324 (11,820)
 Extraordinary charge resulting from
 write-off of deferred financing costs
 in conduction with early
 extinguishment of debt --- ---
 NET INCOME (LOSS) $ 2,324 $(11,820)
 Weighted average shares
 outstanding 60,341,090 36,273,899
 Earnings (loss) per share:
 Income (loss) before
 extraordinary item $ .04 $(.33)
 Extraordinary charge resulting from
 write-off of deferred financing
 costs in conjunction with
 early extinguishment of debt --- ---
 Net income $ .04 $(.33)
 Period ended Nine months
 Sept. 30, 1992 1991
 Net sales $ 776,593 $ 693,159
 Operating Costs and Expenses:
 Costs of sales 552,545 497,693
 Selling, general and administrative 101,016 94,142
 Research and development 42,314 43,600
 Amortization of excess of cost over
 fair value of net assets acquired 19,413 19,167
 Total operating costs and expenses 715,288 654,602
 OPERATING INCOME 61,305 40,557
 Other income (expense) 346 665
 Interest expense, net (84,821) (93,241)
 Gain (loss) from divestiture
 businesses and assets 9,213 (29,114)
 INCOME (LOSS) BEFORE INCOME TAXES
 AND EXTRAORDINARY ITEM (13,957) (81,133)
 Provision for income taxes (10,607) (10,173)
 INCOME (LOSS) BEFORE
 EXTRAORDINARY ITEM (24,564) (91,306)
 Extraordinary charge resulting from
 write-off of deferred financing costs
 in conjunction with early
 extinguishment of debt (11,598) ---
 NET INCOME (LOSS) $(36,162) $(91,306)
 Weighted average shares
 outstanding 45,707,940 36,323,958
 Earnings (loss) per share:
 Income (loss) before
 extraordinary item $(.54) $(2.51)
 Extraordinary charge resulting from
 write-off of deferred financing
 costs in conjunction with
 early extinguishment of debt $(.25) ---
 Net income $(.79) $(2.51)
 -0- 10/22/92
 /CONTACT: Bernie M. Windon of General Instrument, 312-541-5030/
 (GIC) CO: General Instrument Corp. ST: Illinois IN: SU: ERN


SH -- NY110 -- 3686 10/22/92 13:57 EDT
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