[Chyron reports improved Q1 results.]
Source:
biz.yahoo.com
Wednesday May 15, 4:50 pm Eastern Time
Press Release
SOURCE: Chyron Corporation
Chyron Reports Improved 2002 First Quarter Results
MELVILLE, N.Y.--(BUSINESS WIRE)--May 15, 2002--
Chyron Corporation (OTCBB:CYRO - News) today
announced financial results for the first quarter ended
March 31, 2002.
Total revenue for the quarter ended March 31, 2002
was $10.1 million consisting of $4.8 million in revenue
from graphics division and $5.3 million in revenue from
signal distribution and automation division. Total
revenue for the same quarter last year was $10.7
million, with $4.2 million from the graphics division,
$6.3 million from the signal distribution and automation
division, and $0.2 million from the new media products
streaming services division that was discontinued in
the second quarter of last year. Total revenue for the
fourth quarter of 2001 was $10.9 million consisting of
$4.8 million in revenue from graphics division and $6.1
million in revenues from the signal distribution and
automation division.
The Company produced a significant improvement in
operations for the quarter, reporting an operating loss
for the first quarter of $0.1 million as compared to an
operating loss of $6.5 million for the comparable
quarter of 2001 and an operating loss of $2.6 million
for the fourth quarter of 2001 (inclusive of a $0.6 million
restructuring charge). Higher gross margins on product
sales, and lower operating expenses resulting
primarily from the effect of the Company's cost cutting
and restructuring efforts implemented in 2001, were
the primary reasons.
While the Company reported a net loss for the first
quarter of $0.8 million, or $0.02 per share, compared to
a net loss of $7.3 million, or $0.19 per share, for the
comparable quarter of 2001 and a net loss of $2.8
million or $0.08 per share for the fourth quarter of 2001,
earnings before interest, taxes and depreciation and
amortization (EBITDA) for the first quarter was a profit of
$0.4 million as compared to a loss of $5.4 million for
the first quarter of 2001 and a loss of $1.9 million for
the fourth quarter of 2001. In arriving at these EBITDA
amounts, net interest of $0.6 million, $0.3 million and
$0.3 million and depreciation and amortization of $0.6
million, $1.6 million and $0.6 million, have been added
back to reported net loss for the first quarter of 2002,
first quarter of 2001 and fourth quarter of 2001,
respectively. Included in the first quarter net loss was a
foreign exchange loss of $0.1 million as compared to a
foreign exchange loss of $0.5 million in the first quarter
of 2001 and a foreign exchange loss of $0.1 million in
the fourth quarter of 2001.
"I am very pleased with the progress that Chyron has
demonstrated in the first quarter this year," said Roger
Henderson, President and CEO. "Following a tough
last year and still operating in difficult market
conditions, we were close to profitability this quarter on
an operating basis and delivered a positive EBITDA.
This represents a considerable improvement in the
Company's performance. Because of our success in
the sales of our graphics and automation products and
our strong product line up, our margins, while under
pressure, are holding up well. While our cash declined
in the quarter by $2.5 million, $1.9 million of this
resulted from payments on our revolving credit
agreements. We believe our cash on hand and
revolving credit availability will be sufficient to meet our
operating cash needs for 2002 provided we meet our
planned results of operations for the balance of the year.
"Our expectation is that the year will continue to be
relatively flat with the USA improving towards Q4 but the
European economic climate not improving until mid
2003. We are focused on continuing to improve our
competitive position as evidenced by the number of
products launched at the National Association of
Broadcasters (NAB) trade show in April and the two
best of show awards we received there. We continue to
work to further improve our performance as the year
progresses.
"I am also very pleased to be able to formally announce
the appointment of Jerry Kieliszak as Senior Vice
President and Chief Financial Officer. Jerry joined us in
mid-March to replace G. R. Sam Seraphim who had
been serving as interim CFO. Jerry has strong
credentials, including a background in the software
industry and will add significantly to the strength of the
management team."
Other highlights for 2002 First Quarter:
* Released important product updates including:
* Aprisa® Stillstore software version 2.2, featuring MOS
Protocol, to enable newsroom journalists and control
room operators to dynamically control the Aprisa
family of still and video graphic clip servers within the
Avid® iNEWS(TM) newsroom computer system;
* Lyric® software version 3.1, featuring MOS Protocol,
Clip player and mapping of 2D text onto 3D objects.
* Closed substantial orders in the International market
for Chyron Graphics products including an order from
Televisio de Catalunya, Barcelona, Spain, for 20
Duet® systems (a combination of Duet SD and Duet
LE) to replace all of its existing character generators
for production, post-production, transmission and news.
* Chosen by Hallmark to provide Eclipse routers for
their Crown Media International Playback Center in
Denver, Colorado.
* Provided the Canadian Broadcasting Corporation with
Duet graphics and animation systems and Aprisa 250
integrated still and clip stores for its graphics
coverage of the 2002 Winter Olympics in Salt Lake City.
* Created an "Office of the Chairman," consisting of
Wesley Lang, non-executive Chairman of the Board of
Directors, Roger Henderson, President and Chief
Executive Officer and Michael Wellesley-Wesley,
Chairman of the Executive Committee, in order to
focus on and prioritize rebuilding of shareholder value.
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, use and
improvement of the Internet, 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, the viability of the
OTC Bulletin Board as a trading platform, 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 (OTCBB:CYRO - News) 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 interactive television. Chyron provides a
broad range of leading-edge hardware and software
products, including on- and off-line content creation
software, character generators, clip and still store
products, signal distribution systems, master control
switchers, broadcast automation and media
management. For more information about Chyron
products and services, please visit the company web
site at www.chyron.com.
All trademarks are held by their respective companies.
CHYRON CORPORATION
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands except per share data)
Three Months Ended
March 31,
2002 2001
---- ----
Net sales $10,068 $10,685
Gross profit 5,538 4,708
Selling, general & administrative 4,615 9,280
Research & development 1,054 1,963
----- -----
Total operating expenses 5,669 11,243
----- ------
Operating profit (loss) (131) (6,535)
Interest and other expense, net 689 771
----- ------
Net loss $(820) $(7,306)
===== =======
Loss per common share - basic and diluted $ (0.02) $(0.19)
====== ======
Weighted average number of common and
common equivalent shares outstanding 39,564 39,152
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
March 31, December 31,
2002 2001
---- ----
Assets:
Cash and cash equivalents $1,838 $4,342
Accounts receivable 6,688 8,029
Inventories 9,444 9,081
Other current assets 956 473
------ ------
Total current assets 18,926 21,925
Non-current assets 11,246 11,974
------ ------
Total assets $30,172 $33,899
====== ======
Liabilities and shareholders' equity:
Current liabilities $13,059 $17,559
Non-current liabilities 17,396 16,027
------ ------
Total liabilities 30,455 33,586
Shareholders' equity (283) 313
------ ------
Total liabilities and shareholders' equity $30,172 $33,899
====== ======
------------------------------------------------------------------------
Contact:
Chyron Corporation, Melville
Roger Henderson, 631/845-2000
rhenderson@chyron.com
or
Jerry Kieliszak, 631/845-2000
jerryk@chyron.com |
