ZERO CHUMPS, THATS WHAT IT SAYS, ZERO->"Revenues were $0 in both periods, as the Company has been in the development stage and working to complete its technology."
$350,000 A MONTH BURN RATE AND ZERO WHICH MEANS MORE DILUTION COMING YOUR WAY!!
New Visual Reports Second Quarter 2002 Results
SAN DIEGO, May 31 /PRNewswire-FirstCall/ -- New Visual Corporation (OTC Bulletin Board: NVEI), an emerging provider of semiconductors to the high-speed data networking industry, today reported financial results for the second fiscal quarter ended April 30, 2002.
Total assets at April 30, 2002 were $8.6 million, a 207% increase from total assets of $2.8 million reported at October 31, 2001. Total liabilities, excluding redeemable preferred stock of $3.2 million, were $3.1 million at April 30, 2002, compared to total liabilities of $2.3 million reported at year-end. Shareholders' equity increased by 396% between year-end and April 30, 2002, to $2.4 million at April 30, 2002, from $484,000 at October 31, 2001. The Company had $354,000 in cash at April 30, 2002, compared to $86,000 at January 31, 2002 and $295,000 at year-end.
The improved financial position at April 30 is principally due to the acquisition in April of a technology license from Adaptive Networks, recorded at the Company's cost of $5.7 million, net of accumulated amortization. The increase in liabilities is primarily the result of a $1.5 million accrual representing future payments to be made for outsourced technology development work.
Net loss for the second quarter of 2002 was $3.2 million, or $0.08 per share (basic and diluted). This compares with net loss of $1.9 million, or $0.06 per share (basic and diluted) reported for the first quarter of 2002 and net loss of $1.2 million, or $0.05 per share (basic and diluted) for the second quarter last year. The increased loss in the most recent quarter, compared to the same period last year, was due primarily to non-cash charges of $1.4 million and a $650,000 increase in research and development expenses. The increased research and development expense in 2002 is related to the Company's acceleration of development of its FPGA prototype. The non-cash charges relate to compensatory elements of stock issuances and the issuance of convertible notes payable. Revenues were $0 in both periods, as the Company has been in the development stage and working to complete its technology.
Cash provided by financing activities was $3.4 million during the first six months of fiscal 2002, and consisted of proceeds from the sale of common stock, the exercise of warrants to purchase common stock, and the issuance of convertible notes.
About New Visual Corporation
Based in San Diego, California, New Visual is a late-development-stage fabless communications semiconductor company. It is developing an advanced technology that allows data to be transmitted at greater speed and across extended distances over existing copper wire. For more information, visit www.newvisual.com.
With the exception of historical information contained in this press release, this press release includes forward-looking statements made under the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, including but not limited to the following: product development difficulties; market demand and acceptance of its products; ability to obtain additional financing; the impact of changing economic conditions; business conditions in the Internet and telecommunications industries; reliance on third parties, including potential suppliers, licensors and licensees; the impact of competitors and their products; risks concerning future technology; and other factors detailed in this press release and in the Company's Securities and Exchange Commission filings.
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SOURCE New Visual Corporation
CO: New Visual Corporation
ST: California
SU: ERN
prnewswire.com
05/31/2002 16:10 EDT |
