Earnings. Barely trading water but not good. The most alarming number is the minimum pension adjustment that kicks liabilities up another 26 million.
Ampex Corporation Reports Preliminary Unaudited 2002 Financial Results
Wednesday, March 5, 2003 04:02 PM ET
REDWOOD CITY, Calif.--(BUSINESS WIRE)--March 5, 2003--Ampex Corporation (AMEX: AXC, news) today reported a net loss from continuing operations of $2.8 million or $0.05 per diluted share for the year ended December 31, 2002. In 2001, the Company reported a net loss from continuing operations of $10.9 million or $0.18 per diluted share.
Revenues from the Company's continuing operations declined to $37.0 million in 2002 from $46.0 million in 2001, primarily owing to a decline in royalty income as the Company transitions its licensing agreements from analog to digital technology. The Company's royalty operations contributed operating income of $0.05 per diluted share in 2002 compared to $0.19 per diluted share in 2001. The Company's Data Systems subsidiary generated operating income of $0.07 per diluted share in 2002 compared to an operating loss of $0.07 in 2001. In 2002, restructuring charges accounted for $0.04 loss per diluted share, and interest expense and other financing costs, net, accounted for $0.14 loss per diluted share. In 2001, restructuring charges accounted for $0.06 loss per diluted share, and interest and other financing costs, net, accounted for $0.12 loss per diluted share.
The Company's continuing operations in 2002 benefited from the non-cash reversal of reserves for foreign, federal, state and deferred income taxes, totaling $6.7 million or $0.11 per diluted share. Such reserves were provided in prior years that are now either closed to audit or otherwise determined not to be required.
In 2001, the Company discontinued its Internet video operations which resulted in a charge of $0.29 per diluted share.
The Company recorded a benefit from the extinguishment of preferred stock of $0.07 per diluted share in 2002 and $0.10 per diluted share in 2001. The Company reported net income applicable to common stockholders, including continuing and discontinued operations and the benefit from extinguishment of preferred stock, of $1.5 million or $0.02 per diluted share in 2002 compared to a net loss applicable to common stockholders of $22.4 million or $0.38 per diluted share in 2001.
Ampex Corporation, ampex.com, headquartered in Redwood City, California, is one of the world's leading innovators and licensors of technologies for the visual information age.
This news release contains predictions, projections and other statements about the future that are intended to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of l995 (collectively, "forward-looking statements"). Forward-looking statements relate to various aspects of the Company's operations and strategies, including but not limited to the Company's liquidity and anticipated interest expenses; the risk of significant future losses from operations; fluctuations in royalty income and quarterly results; dependence on licensed patented technology and risks of rapid technological change; the possible need to raise additional capital in order to meet the Company's obligations and most other statements that are not historical in nature. Important factors that could cause actual results to differ materially from those described in the forward-looking statements are described in cautionary statements included in this news release and/or in the Company's 2002 Annual Report on Form 10-K to be filed shortly with the SEC and its Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2002, June 30, 2002 and September 30, 2002 filed with the SEC. In assessing forward-looking statements, readers are urged to consider carefully these cautionary statements. Forward-looking statements speak only as of the date of this news release, and the Company disclaims any obligations to update such statements.
AMPEX CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
December 31, December 31,
2002 2001
-------------------------
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $ 9,062 $ 8,015
Short-term investments - -
Accounts receivable (net of allowances of
$112 in 2002 and $153 in 2001) 4,064 6,002
Inventories 7,336 13,258
Other current assets 2,368 4,426
-------------------------
Total current assets 22,830 31,701
Property, plant and equipment 5,757 6,599
Other assets 752 873
-------------------------
Total assets $ 29,339 $ 39,173
=========================
LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS' DEFICIT
Current liabilities:
Notes payable $ 457 $ 2,584
Accounts payable 962 3,665
Net liabilities of discontinued operations 1,108 1,383
Accrued restructuring costs 1,300 2,038
Other accrued liabilities 10,471 17,333
-------------------------
Total current liabilities 14,298 27,003
Long-term debt 68,218 58,790
Other liabilities 64,413 41,740
Deferred income taxes - 1,213
Accrued restructuring costs 1,700 -
Net liabilities of discontinued operations 3,024 3,874
-------------------------
Total liabilities 151,653 132,620
-------------------------
Commitments and contingencies
Mandatorily redeemable nonconvertible
preferred stock, $1,000 liquidation value:
Authorized: 69,970 shares in 2002 and in
2001
Issued and outstanding -- none in 2002 and
in 2001 - -
Mandatorily redeemable preferred stock,
$2,000 liquidation value:
Authorized: 21,859 shares in 2002 and in
2001
Issued and outstanding -- 12,877 shares in
2002; 15,025 in 2001 25,754 30,050
Convertible preferred stock, $2,000
liquidation value:
Authorized: 10,000 shares in 2002 and in
2001
Issued and outstanding -- none in 2002; 51
in 2001 - 102
Stockholders' deficit:
Preferred stock, $1.00 par value:
Authorized: 898,171 shares in 2002 and
in 2001
Issued and outstanding -- none in 2002
and in 2001 - -
Common stock, $.01 par value:
Class A:
Authorized: 175,000,000 shares in
2002 and in 2001
Issued and outstanding -- 63,412,196
shares in 2002; 61,652,996 in 2001 634 616
Class C:
Authorized: 50,000,000 shares in
2002 and in 2001
Issued and outstanding -- none in
2002 and in 2001 - -
Other additional capital 427,899 428,161
Notes receivable from stockholders - (4,642)
Accumulated deficit (512,722) (510,023)
Accumulated other comprehensive income (63,773) (37,711)
-------------------------
Total stockholders' deficit (147,962) (123,599)
-------------------------
Total liabilities, redeemable preferred
stock and stockholders' deficit $ 29,339 $ 39,173
=========================
AMPEX CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except share and per share data)
Year Ended December 31,
--------------------------------------
2002 2001 2000
------------ ------------ ------------
(unaudited)
Royalty income $ 3,969 $ 12,056 $ 12,272
Product sales 33,020 33,964 47,582
------------ ------------ ------------
Total revenue 36,989 46,020 59,854
------------ ------------ ------------
Intellectual property costs 958 646 1,052
Cost of product sales 20,201 24,451 29,101
Research, development and
engineering 2,614 5,494 6,883
Selling and administrative 11,217 14,231 15,117
Restructuring charges 2,245 3,518 -
------------ ------------ ------------
Total costs and operating
expenses 37,235 48,340 52,153
------------ ------------ ------------
Operating income (loss) (246) (2,320) 7,701
Interest expense 8,465 7,233 5,723
Amortization of debt financing
costs 460 529 350
Interest income (360) (330) (1,321)
Other (income) expense, net 236 (52) 242
------------ ------------ ------------
Income (loss) from continuing
operations before income
taxes (9,047) (9,700) 2,707
Provision for income taxes (6,242) 1,175 1,227
------------ ------------ ------------
Income (loss) from continuing
operations (2,805) (10,875) 1,480
Loss from discontinued
operations (net of taxes of nil
in 2001 and 2000) - (6,916) (31,898)
Loss on disposal of discontinued
operations (net of taxes of nil
in 2001 and 2000) - (10,338) (6,278)
------------ ------------ ------------
Net loss (2,805) (28,129) (36,696)
Benefit from extinguishment of
mandatorily redeemable
preferred stock 4,192 5,720 1,263
----------- ----------- -----------
Net income (loss) applicable
to common stockholders 1,387 (22,409) (35,433)
Other comprehensive loss, net of
tax:
Unrealized gain (loss) on
marketable securities - - (141)
Foreign currency translation
adjustments 88 (160) (186)
Minimum pension adjustment (26,261) (20,693) (17,553)
------------ ------------ ------------
Comprehensive loss $ (24,786) $ (43,262) $ (53,313)
============ ============ ============
Basic income (loss) per share:
Income (loss) per share from
continuing operations $ (0.04) $ (0.18) $ 0.03
Loss per share from
discontinued operations $ 0.00 $ (0.29) $ (0.68)
Income (loss) per share
applicable to common
stockholders $ 0.02 $ (0.38) $ (0.63)
------------ ------------ ------------
Weighted average number of
common shares outstanding 62,332,829 59,112,007 56,320,023
============ ============ ============
Diluted income (loss) per share:
Income (loss) per share from
continuing operations $ (0.04) $ (0.18) $ 0.02
Loss per share from
discontinued operations $ 0.00 $ (0.29) $ (0.53)
Income (loss) per share
applicable to common
stockholders $ 0.02 $ (0.38) $ (0.50)
------------ ------------ ------------
Weighted average number of
common shares outstanding 62,332,829 59,112,007 71,527,127
============ ============ ============
CONTACT: Ampex Corporation
Karen L. Dexter, 650/367-4111 |
