Earnings are out.
Monday April 21 8:20 PM EDT
Ampex Corporation reports first quarter net income of
$4.9 million and earnings of $0.11 per share
REDWOOD CITY, Calif.--(BUSINESS WIRE)--April 21, 1997-- Ampex Corp reported
today net income of approximately $4.9 million, and fully diluted earnings per share of $0.11 for
the first quarter of 1997, compared to net income of $3.5 million, and fully diluted earnings per
share of $0.09 for the first quarter of 1996.
Sales in the first quarter of l997 were $21.1 million, compared to $24.2 million in the first quarter
of l996. The increase of $1.4 million, or 42.4% in net income, between the comparison periods
resulted in a smaller percentage increase in earnings per share (22.2%) as a result of the
conversion during the first quarter of 1996 of substantially all of the Company's zero-coupon
convertible notes into common shares.
Expenses for patent infringement litigation with Mitsubishi Electric Corporation and Mitsubishi
Electric America Inc. (Mitsubishi) reduced earnings by approximately $0.04 per share in the first
quarter of 1997, and reduced earnings by approximately $0.01 per share in the first quarter of
1996. Non-recurring royalty settlements increased earnings by approximately $0.07 per share in
the first quarter of 1997, and by approximately $0.02 per share in the first quarter of 1996.
In April 1997, the Company announced that, with respect to its lawsuit against Mitsubishi, a jury
in the U.S. District Court for the District of Delaware had returned a verdict in favor of Ampex.
Non-recurring royalties in the first quarter of 1997 do not include any income from this litigation
pending final resolution of the lawsuit.
Net sales in the first quarter of 1997 declined by $3.2 million, 13.0% compared to the first quarter
of 1996. The reduction was principally attributable to a greater than anticipated fall in sales of
professional television and television after-market products, and, to a lesser extent, a decline in
sales of mass data storage products to the oil exploration services industry which were at unusually
high levels in the first quarter of 1996. Sales to foreign customers accounted for all of the reduction
in sales in the comparison periods. Domestic sales increased slightly.
Gross profit in the first quarter of 1997 declined by $0.3 million (3.1%), compared to the first
quarter of 1996, as a result of the decline in sales which was offset by an increase in the gross
profit margin percentage to 49.9% in the 1997 period, compared to 44.8% in the 1996 period.
The increase in gross profit margin percentage results from the Company's cost reduction
programs as well as higher sales of instrumentation products which are more profitable than the
television and other products that experienced sales declines between comparison periods.
The increase of $1.6 million in selling and administrative expenses in the first quarter of 1997,
compared to the first quarter of 1996, is entirely due to the costs of the Company's litigation with
Mitsubishi, referred to above.
Ampex Corporation is one of the world's leading innovators in the fields of magnetic recording,
image processing and high-performance digital storage. Ampex is currently focusing its technology
on the emerging market for mass data storage in the visual information age. During its 53-year
history of innovation, Ampex has been granted thousands of patents and numerous awards for
technical achievement. Headquartered in Redwood City, California, Ampex's customers today
include such leading organizations as AT&T, Boeing, Mobil Oil, Time Warner and NASA.
Any statements contained herein that are not historical facts are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995, and involve risks and
uncertainties. Information on potential factors which could affect the Company's actual results of
operations are included in its filings with the Securities and Exchange Commission, including but
not limited to its Annual Report on Form 10-K for the fiscal year ended December 31, 1996, and
its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 1997, which is
expected to be filed shortly.
AMPEX CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share data)
(unaudited)
For the three months ended
March 31, March 31,
1997 1996
Net Sales $ 21,081 $ 24,232
Cost of sales 10,562 13,371
Gross profit 10,519 10,861
Selling and administrative 7,646 6,061
Research, development and engineering 3,748 3,912
Royalty income (5,782) (2,930)
Operating income 4,907 3,818
Interest expense 31 671
Amortization of debt financing costs - 18
Interest income (778) (751)
Other (income) expense, net 58 (3)
Income before income taxes 5,596 3,883
Provision for income taxes 652 410
Net income $4,944 $3,473
Primary income per share:
Income per share $ 0.11 $ 0.09
Weighted average number of common
shares outstanding 46,669,371 39,785,140
Fully diluted income per share:
Income per share $ 0.11 $ 0.09
Weighted average number of common
shares outstanding 46,669,371 45,982,319
AMPEX CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
March 31, Dec. 31,
1997 1996
ASSETS
Current assets:
Cash and cash equivalents 8,507 13,410
Short-term investments 22,650 17,241
Notes receivable 8,136 7,926
Accounts receivable (net of
allowances of $1,889 and $2,241) 16,895 16,721
Inventories 16,040 14,095
Other current assets 2,757 2,709
Total current assets 74,985 72,102
Property, plant and equipment 9,576 10,059
Other assets 1,980 2,331
Total assets 86,541 84,492
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Notes payable 999 1,075
Accounts payable 8,238 7,148
Income taxes payable 450 571
Accrued restructuring costs 1,932 2,002
Other accrued liabilities 21,888 22,029
Total current liabilities 33,507 32,825
Long-term debt 628 914
Other liabilities 57,199 60,233
Deferred income taxes 1,314 1,314
Accrued restructuring costs 5,136 5,596
Total liabilities 97,784 100,882
Redeemable nonconvertible preferred
stock, $1,000 liquidation value:
Authorized: 69,970 shares 1997
and 1996
Issued and outstanding -
69,970 shares 1997 and 1996 69,970 69,970
Stockholders' deficit:
Preferred stock, $1.00 par value:
Authorized: 842,838 shares 1997
and 1996
Issued and outstanding - none
1997 and 1996 - -
Common stock, $.01 par value:
Class A:
Authorized: 125,000,000 shares
1997 and 1996
Issued and outstanding -
45,523,597 shares 1997;
45,434,417 shares 1996 455 454
Class C:
Authorized: 50,000,000 shares
1997 and 1996
Issued and outstanding - none
1997 and 1996 - -
Other additional capital 382,303 382,042
Note receivable from stockholder (3,979) (3,979)
Accumulated deficit (449,927) (454,871)
Cumulative translation adjustments 467 526
Minimum pension liability
adjustment (10,532) (10,532)
Total stockholders' deficit (81,213) (86,360)
Total liabilities and
stockholders' deficit 86,541 84,492
CONTACT: Ampex Corporation, Redwood City
Karen D. Schweikher, 415/367-4111 |
