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 NEWPORT NEWS, Va., Oct. 26 /PRNewswire/ -- nVIEW Corporation (NASDAQ-NMS: NVUE), a leading manufacturer of high-performance, liquid crystal display projection products, today announced sales and earnings results for the third quarter and first nine months of 1993.
 Sales for the third quarter of 1993 were $8.2 million, 13 percent above the $7.2 million for the third quarter last year. For the first nine months of 1993 sales were $25.2 million, an increase of 19 percent over sales of $21.1 million for the same period of 1992.
 The company experienced a net loss of $416,000 or 8 cents per share for the third quarter, compared with a net loss of $282,000 or 6 cents per share for the third quarter of 1992. For the first nine months of 1993, the net loss of $153,000 or 3 cents per share compares with a net loss of $195,000 or 4 cents per share for the same period of 1992.
 William M. Donaldson, nVIEW's president and chief executive officer, commenting on the company's performance stated: "Although sales for the first nine months and third quarter were well above last year's results, sales for the third quarter of 1993 were affected by an announcement on June 1, 1993, that prices for several of our products would increase on July 1, 1993. As we mentioned in connection with our second quarter results, we believe the announcement of the price increase may have motivated some customers to advance their third quarter purchase decisions and to buy products in the second quarter rather than in the third quarter when the price increases became effective. Third quarter sales were also affected by slow sales in our European markets, in part, as a result of weak economic conditions in Europe which have caused many European customers to postpone purchases until some evidence of economic recovery has occurred."
 Donaldson went on to say: "The gross profit margin of 35 percent for the first nine months of 1993 exceeded the margin for the first nine months of 1992 of 32 percent. For the third quarter of 1993, however, the gross profit margin declined to 33 percent from a margin of 36 percent for the same quarter last year. The reduction in the gross profit margin for the third quarter primarily reflected the effects of the implementation of a plan in the third quarter of 1993 to offer strategic pricing on selected products in order to increase nVIEW's share of the education market. In addition, the gross profit margin was affected by the granting of quantity discounts on our existing stock of ViewFrame(R) Spectra C projection panels. A new, significantly upgraded version of the ViewFrame Spectra C was introduced during the third quarter."
 Also during the third quarter of 1993, nVIEW enhanced two of its high performance projector products, the MediaPro(TM) projection panel and the Luminator(TM) multimedia projector, by increasing their color display capabilities to 16.7 million colors. The upgraded version of nVIEW's most popular product, the ViewFrame Spectra C projection panel, now includes on-board video imaging capabilities and the capacity to project computer and video images in up to 1.4 million colors.
 In an announcement last week, nVIEW Corporation indicated it had signed a letter of intent to acquire the Projection Display Products Operation (PDPO) of Martin Marietta Corporation (NYSE: ML). PDPO was formerly a part of GE Aerospace, which was acquired by Martin Marietta earlier this year. PDPO manufactures and markets a broad line of electronic projection products which use a variety of image-creating technologies. The addition of PDPO is expected to significantly expand nVIEW's current and future range of projection products and greatly increase the scope of the company's distribution network.
 nVIEW Corporation is a leading manufacturer of electronic projection products which project large screen images direct from computer and video sources. nVIEW's products are today's projection solution for group communication for business, education and government throughout the world.
 Condensed Consolidated Balance Sheets
 Sept. 30, Dec. 31,
 1993 1992
 Current assets:
 Cash and cash equivalents $ 8,899,758 $ 8,734,143
 Restricted cash 2,553,864 2,545,289
 Receivables, net 7,489,129 6,677,321
 Inventories, net 6,979,748 9,118,745
 Prepaid expenses 614,319 146,210
 Total current assets 26,536,818 27,221,708
 Property and equipment, net 1,393,979 1,189,195
 Other assets, net 289,268 291,312
 Total $28,220,065 $28,702,215
 Liabilities and Shareholders'
 Current liabilities:
 Accounts payable $3,906,255 $4,248,495
 Accrued expenses 476,233 335,322
 Accrued professional fees 108,973 416,733
 Income taxes payable 60,000 0
 Total current liabilities 4,551,461 5,000,550
 Shareholders' equity:
 Common stock, no par value 0 0
 Additional paid-in capital 24,878,579 24,758,579
 Accumulated deficit (1,209,975) (1,056,914)
 Total shareholders' equity 23,668,604 23,701,665
 Total $28,220,065 $28,702,215
 Consolidated Statements of Earnings
 Three Months Ended Nine Months Ended
 (Unaudited) (Unaudited)
 Sept. 30, Sept. 30, Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Sales $8,183,130 $7,244,143 $25,174,927 $21,146,363
 Cost of goods sold 5,443,177 4,614,360 16,298,256 14,386,271
 Gross profit 2,739,953 2,629,783 8,876,671 6,760,092
 Marketing and
 promotion 2,096,458 1,807,997 5,820,659 4,155,412
 Research and
 development 601,390 449,546 1,460,346 1,579,436
 General and
 administrative 545,620 559,454 1,589,134 1,388,714
 Litigation expense 39,909 153,723 296,709 128,045
 expenses 3,283,377 2,970,720 9,166,848 7,251,607
 Loss from
 operations (543,424) (340,937) (290,177) (491,515)
 Other income (expense):
 Interest expense (16,963) (31,417) (46,536) (104,575)
 Interest income 83,821 87,882 244,637 428,642
 Miscellaneous (1,376) 2,350 (984) 3,469
 Total 65,482 58,815 197,117 327,536
 Loss before income
 tax expense
 (benefit) (477,942) (282,122) (93,060) (163,979)
 Income tax expense
 (benefit) (62,000) 0 60,000 31,000
 Net loss ($415,942) ($282,122) ($153,060) ($194,979)
 Average shares 4,950,936 5,010,683 4,946,247 4,992,038
 Loss per share ($0.08) ($0.06) ($0.03) ($0.04)
 -0- 10/26/93
 /CONTACT: James A. Kirkpatrick of nVIEW Corporation, 804-873-1354/

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

IH-MH -- DC012 -- 6829 10/26/93 10:58 EDT
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Publication:PR Newswire
Date:Oct 26, 1993

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