[CHY Reports Q4 and FY99 Results.]
Thursday February 17, 2:36 pm Eastern Time
Company Press Release
Chyron Reports 1999 Fourth Quarter Results
MELVILLE, N.Y.--(BUSINESS WIRE)--February 17, 2000--Chyron
Corporation (NYSE: CHY - news), today announced financial
results for the fourth quarter and year ended December 31, 1999.
Net sales for the fourth quarter ended December 31, 1999 were
$12.8 million compared to $19.0 million in the comparable
1998 quarter. The net loss for the fourth quarter of 1999 was
$1.8 million, or $0.06 per share, compared to a net loss of
$1.0 million, or $0.03 per share, for the comparable period
in 1998.
Net sales for the year ended December 31, 1999 were $60.7
million compared to $83.7 million for the comparable period
in 1998. The loss from continuing operations, excluding non-
recurring charges, net of credits, for the full year 1999 was
$9.5 million, or $0.30 per share versus $1.7 million, or
$0.05 per share for the full year 1998. The reported net loss
for the 1999 year was $29.8 million, or $0.93 per share,
compared to a loss of $4.4 million, or $0.14 per share, for 1998.
Roger Henderson, President and Chief Executive Officer of
Chyron, commented, ``Fourth quarter sales were impacted in
large part by a reduced demand attributed to Y2K concerns.
Despite that, the restructuring that we carried out earlier
in the year and our focus on cost reduction have enabled us
to meet our internal financial objectives.
``We made important new announcements of our partnership with
Microsoft for the development of our Interactive Graphics
Products and made the first deliveries of an exciting new
product, our Clarinet Internet coder, which we sold to the
BBC and Virtue Interactive. We believe this product could
represent a significant new growth opportunity as we are
introducing it at the time when the number of channels of
video and audio being streamed on the web is growing
dramatically.
``We continued to focus on key new products and, most
importantly, brought key routing and graphics products that
were introduced in September 1999 at the International
Broadcasting Convention (IBC), to market on time.
``Looking forward, we anticipate that our new products will
return our base businesses at Chyron Graphics and Pro-Bel to
operational profitability later this year. We are beginning
to see improvement in all these businesses. At the same time,
we will continue to invest heavily in the rollout of our new
media and Internet initiatives, which have exciting prospects.'
Sales in the fourth quarter of 1999 were impacted by
sluggishness in the broadcast industry, which was more
pronounced as a result of the uncertainty surrounding Y2K.
Chyron is extremely pleased to state that the Company's
products did not encounter any significant Y2K issues.
Quarterly margins improved from 45% to 47% as a result of
reduced levels of variable manufacturing costs, reduced
costs of material for mature products and improved project
management. Fourth quarter operating expenses in 1999 were
lower than in the comparable quarter in 1998, primarily as a
result of a 20% reduction in personnel. Non operating income
in the fourth quarter of 1999 included a gain of $0.5 million
resulting from the sale of approximately 18% of the Company's
investment in RT-Set. The unrealized appreciation of the
Company's remaining investment in RT-Set was $2.6 million at
December 31, 1999.
From time to time, including in this press release, the
Company may publish forward-looking statements relating to
such matters as anticipated financial performance, business
prospects, technological developments, changes in the
industry, new products, research and development activities
and similar matters. The Private Securities Litigation Reform
Act of 1995 provides a safe harbor for forward-looking
statements. In order to comply with the terms of the safe
harbor, the Company notes that a variety of factors could
cause the Company's actual results to differ materially from
the anticipated results or other expectations expressed in
the Company's forward-looking statements. The risks and
uncertainties that may affect the operations, performance,
development and results of the Company's business include,
without limitation, the following: product concentration in a
mature market, dependence on the emerging digital market and
the industry's transition to DTV and HDTV, consumer
acceptance of DTV and HDTV, resistance within the broadcast
or cable industry to implement DTV and HDTV technology, rapid
technological changes, new technologies that could render
certain Chyron products to be obsolete, a highly competitive
environment, competitors with significantly greater financial
resources, new product introductions by competitors,
seasonality, fluctuations in quarterly operating results,
ability to maintain adequate levels of working capital,
ability to maintain its NYSE listing, expansion into new
markets and the Company's ability to successfully implement
its acquisition and strategic alliance strategy.
Serving the television industry for three decades, Chyron
Corporation has established itself as a leading innovator in
the development of television graphics and distribution
systems, including products to meet the demands of digital
and high definition television. Chyron provides a broad range
of leading-edge hardware and software products, including
graphics platforms, paint and animation systems, character
generators, signal distribution systems, master control
switchers, broadcast automation and media management. For
more information about Chyron products and services, please
visit the company website at www.chyron.com.
All trademarks are held by their respective companies.
-0-
Condensed Consolidated Statements of Operations
(In thousands except per share data)
Three Months Ended Year Ended
December 31, December 31,
(Unaudited)
1999 1998 1999 1998
Net sales $ 12,756 $ 19,027 $ 60,709 $ 83,710
Gross profit 6,041 8,608 26,058 39,460
Restructuring and other
non-recurring charges 6,681 3,979
Total operating
expenses 8,158 9,389 42,162 44,936
Operating loss (2,117) (781) (16,104) (5,476)
Gain on sale
of investments 541 541 1,194
Interest and
other expense, net (507) (381) (1,272) (1,786)
Loss before provision
for income taxes (2,083) (1,162) (16,835) (6,068)
Benefit (provision)
for income taxes 301 192 (12,949) 1,621
Net loss (1,782) (970) (29,784) (4,447)
Loss per common share -
basic and diluted $ (.06) $ (.03) $ (.93) $ (.14)
Weighted average
number of common and
common equivalent shares
outstanding 32,089 32,058 32,084 32,058
Condensed Consolidated Balance Sheets
(In thousands)
December 31, December, 31
1999 1998
Assets:
Current assets $32,008 $46,067
Total assets $58,381 $83,116
Liabilities and shareholders' equity:
Current liabilities $14,247 $16,031
Total liabilities 35,869 33,346
Shareholders' equity 22,512 49,770
Total liabilities and shareholders' equity $58,381 $83,116
Contact:
Chyron Corporation
Roger Henderson, President and Chief Executive Officer
(631) 845-2000
rhenderson@chyron.com
or
Dawn R. Johnston,
Senior Vice President and Chief Financial Officer
(631) 845-2000
djohnston@chyron.com |
