Ampex Corporation Reports Second Quarter 2001 Financial Results
BUSINESS WIRE - August 14, 2001 08:06
REDWOOD CITY, Calif., Aug 14, 2001 (BUSINESS WIRE) -- Ampex Corporation (Amex:AXC) reported a net loss of $17.3 million, or $0.27 per diluted share, for the second quarter ended June 30, 2001, compared to a net loss of $7.9 million, or $0.14 per diluted share, for the comparable quarter in 2000. Revenues from continuing operations, consisting of royalty income, totaled $2.2 million in the second quarter of 2001 and $3.6 million in the second quarter of 2000. Income (loss) from continuing operations was $(1.0) million in the second quarter of 2001 compared to $(0.1) million in the second quarter of 2000.
In July 2001, the Company announced that its wholly-owned subsidiary, iNEXTV, would close its Internet video operations in New York City and Redwood City, Calif., and would also discontinue making investments in its partially-owned affiliates AENTV in Los Angeles and TV1.de in Munich, Germany. Included in Loss on Disposal of Discontinued Operations in the second quarter 2001 is a charge to write down its investments in those entities completely and a reserve for the future costs of closure, principally real estate leases, aggregating $10.3 million, or $0.18 per diluted share. Loss from Discontinued Operations totaled $3.8 million in the second quarter ended June 30, 2001, consisting solely of iNEXTV's operations and $8.5 million in the second quarter ended June 30, 2000, consisting of iNEXTV's operations as well as the operations of MicroNet Technologies, Inc. the Company's former disk array business, which was discontinued at the end of 2000.
The Company intends to sell Ampex Data Systems Corporation, a subsidiary that manufactures high-performance tape-based mass storage systems for the government and entertainment industries. However, due to market conditions, the Company does not expect to conclude a sale before the end of 2001, if at all. Data Systems is attempting to obtain an expanded credit facility to provide required working capital and to further reduce operating costs to restore profitability. Revenues of Data Systems totaled $8.1 million in the second quarter of 2001 compared to $12.0 million in the second quarter in 2000. Data Systems reported Income (loss) on operations of $(2.2) million in the second quarter of 2001, or $0.04 per diluted share, compared with $0.7 million in the second quarter of 2000, or $0.01 per diluted share.
The Company has experienced a material decline in its liquidity which has required it to restructure or discontinue certain of its businesses. The Company is actively attempting to accelerate receipt of royalty income to fund its operating costs and to satisfy its debt service obligations. The Company is seeking to raise additional liquidity by restructuring debt service to allow additional time for its continuing operations to generate positive cash flow. There can be no assurance as to the Company's ability to achieve the foregoing which will be necessary for it to continue as a going concern. |
