DOW JONES NEWS SERVICE
10:34 =Telechips Corp. Puts 3Q Loss At 30c To 35c A Share >TCHP
By Ralph T. King Jr.
RENO, Nev. (Dow Jones)--Telechips Corp. (TCHP) expects to post a
third-quarter net loss of $1.2 million to $1.5 million, or 30 cents to 35
cents a share, amid promising field trials for its interactive computer
workstations, Chairman and Chief Executive C.A. Burns said.
The startup company began reporting results in the fourth quarter of 1995.
For the second quarter, it reported a net loss of $1.1 million, or 30 cents a
share. Third-quarter revenue was essentially unchanged at about $50,000,
compared with $52,627 in the previous period, Burns told Dow Jones.
Telechips' workstations, which combine touchscreen computers and telephones
that anyone can operate, are being tested by several potentially big
customers. One is Walt Disney Co. (DIS), which has installed them at several
Disney World sites, enabling visitors to book reservations on the spot at
restaurants and other attractions. Another is Tandem Computers Inc. (TDM),
which provides computer infrastructure for various lottery operators.
Massachusetts Mutual Life Insurance Co. is the company's first major
customer, supplying the workstations to corporate sponsors of 401(k) plans
that the insurer administers. Plan participants can easily access up-to-date
information about their accounts at the workstations without having to contact
the insurer by other means.
The cost of the workstation line, whose flagship product is the Telechips
Access Model 3000, ranges from $900 to $2,000, Burns said. One advantage of
the line, which is compatible with Microsoft Corp.'s (MSFT) Windows operating
system, is that users can't install unwanted or corrupting software.
''We will certainly generate substantial revenues in 1997,'' said Burns,
noting that negotiations with Tandem and Disney are proceeding smoothly. While
saying he can't project future profits, he said he believes that Telechips
could begin to turn a profit in 1997, possibly as soon as the first quarter.
Third-quarter results, he said, ''are exactly on plan. This is not something
we are doing by the seat of our pants. We believe we understand this
marketplace and the sea change that's coming to computing in general, namely
the expanding use of computer equipment.''
For example, such ''information-dispensing'' appliances could begin to be installed soon at the end of retail-store aisles, enabling shoppers to locate
an item quickly rather than seeking the assistance of elusive clerks, he said.
(END) DOW JONES NEWS 11-11-96
10:34 AM |
