TRI-VISION INTERNATIONAL LTD. TRI-VISION REPORTS SECOND QUARTER RESULTS
Article #: 25224 Date: 11/27/98 4:19:04 PM
Dateline: TORONTO, ONTARIO
Stock Symbol: TVL Wire: ISDN
Tri-Vision International Ltd./Ltee today reported its unaudited
financial results for the quarter ended September 30, 1998.
In the second quarter, the Company has continued to focus on the
marketing launch of the V-chip product line. Manufacturing cost
of the first 60,000 V-gis(TM) v-chip set-top decoder units is
reflected in the second quarter results although sales of these
units did not start until the next quarter.
The Company reported second quarter revenues of $833,000, derived
solely from its traditional product line, compared to $1,983,000
in the second quarter of 1997. Traditional CATV product sales
decreased by approximately 50% over the corresponding period in
1997, reflecting an increased corporate focus on the launch of
the unique, proprietary V-chip product line.
Gross profits for the period increased slightly as a percentage
of revenue. Selling, general, administrative and research and
development expenses, net of deferrals for product development,
increased from $384,000 in the second quarter of 1997 to $596,000
in the second quarter of 1998. The Company realized interest
income of $53,000 in the second quarter of 1998 as a result of
additional cash provided through the public offering in early
April 1998, compared to no interest related item over the same
period in 1997.
The Company lost $191,000 ($.0039 per share) for the quarter
compared to a restated net income of $241,000 ($.0059 per share)
for the corresponding period last year, mainly due to lower sales
of traditional product lines and increased manufacturing and
marketing expenses relating to the V-chip product line.
Operating activities used $6,051,000 in the second quarter of
1998 compared to using $266,000 in the corresponding period of
1997. Payment of $1,149,000 accounts payable and accrued
liabilities, $1,006,000 of accrued v-chip and other marketing
expenses, and production of the initial V-gis(TM) V-chip decoder
unit inventory of $3,553,000 represent the majority of these
expenditures in the second quarter of 1998.
The Company's cash balance as of September 30,1998 amounted to
$1,392,000 compared to bank indebtedness of $834,000 a year
earlier. The major contributing factor to this decrease in cash
was the production of V-chip decoders and related V-gis(TM)
test-launch marketing and advertising prepayments.
The financial results for the second quarter of 1997 have been
restated to conform to the 1998 financial statement presentation.
Test Launch of V-gis(TM) V-chip Product Line Continues
Tri-Vision's initial test launch of the V-gis(TM) set-top decoder
product line continues in the U.S. through three major retailers
in the Chicago, Indianapolis and Nashville areas. Ingram
Entertainment is currently preparing an analysis of the first
segment of the test launch and this should be provided to
Tri-Vision in December.
Tri-Vision International Ltd./Ltee is a public company founded in
1986 and trades on Canada's Toronto Stock Exchange under the
symbol TVL. Tri-Vision Electronics Inc., a wholly-owned
subsidiary of Tri-Vision International Ltd./Ltee, holds the
exclusive global rights to the patented v-chip technology
developed by award-winning Canadian inventor, Tim Collings.
For investor or media information, contact Century Communications
Corporation at (888) 298-8551 (toll free). Visit the Company
Website at tri-vision.ca or e-mail to
tri-vision@tri-vision.ca and for information on the V-chip
product line visit the V-gis(TM) Website at v-gis.com. |
