CYRO reports a tiny profit...
Chyron Reports Increased Revenues and a Profitable First Quarter 2004
Tuesday May 11, 4:51 pm ET
MELVILLE, N.Y.--(BUSINESS WIRE)--May 11, 2004--Chyron Corporation (OTCBB: CYRO - News) today announced that it had net income of $0.3 million, or $.01 per share, on revenues of $5.8 million for its first quarter ended March 31, 2004.
Revenues for the first quarter increased 9% as compared to the same quarter last year and the Company experienced a sequential revenue increase of 8% from the fourth quarter of 2003.
The Company's net income for the first quarter of $0.3 million, or $.01 per share, compares to net income of $0.1 million, or $.00 per share, for the first quarter of 2003. The first quarter of 2003 net income included a loss from continuing operations of $0.1 million, or $.00 per share and income from discontinued operations of $0.2 million, or $.00 per share. In the fourth quarter of 2003, the Company had net income of $2.1 million, or $.05 per share, consisting of a loss of $0.2 million, or $.00 per share, from continuing operations, and income of $2.3 million, or $.05 per share, from discontinued operations, including a $2.6 million gain on sale of the Company's signal distribution and automation business. Included in the first quarter of 2004 net income was a gain on the sale of marketable securities of $0.2 million. The first quarter of 2003 loss from continuing operations included a $0.2 million loss on the write down of marketable securities and the fourth quarter of 2003 loss from continuing operations included a gain on debt extinguishment of $0.6 million. Interest expense for the first quarter was $0.2 million as compared to $0.5 million in the first quarter of 2003 and $0.5 million in the fourth quarter of 2003.
On a first quarter of 2004 to first quarter of 2003 continuing operations comparison basis, revenues and gross margins both grew, resulting in a $0.5 million higher gross profit in the first quarter of 2004. Selling, general and administrative expenses grew, primarily as a result of a portion of such expenses no longer being shared with the discontinued signal distribution and automation operations. Research and development costs for new products grew by $0.3 million or 53% as compared to the first quarter of 2003.
The Company reported $3.0 million of cash at the end of the first quarter. The Company used $3.8 million of cash to complete its retirement of the remaining Series A and B debentures during the quarter. As a result, the Company's obligations owing under debentures decreased from $8.7 million of debentures paying 12% interest to $4.6 million of new debentures, split between new Series C debentures maturing at the end of 2005 and paying 7% annual interest in kind, and new Series D debentures maturing at the end of 2006 and paying 8% annual interest in kind.
Michael Wellesley-Wesley, Chyron President and CEO commented: "We are pleased with the first quarter improvement in our revenues, gross margin and profitability. Our increased focus on research and development was rewarded at the NAB tradeshow in April, where we won two major awards for new products. Our new HyperX multi-format high definition (HD) character generator graphics system won the prestigious Broadcast Engineering Magazine Pick Hit Award for its superior technology, ease of use and affordability. Our C-Mix high definition (HD) graphics mixer won TV Technology Magazine's prestigious Mario Award." Mr. Wellesley-Wesley then added, "The successful completion of our debt retirement and restructuring in February has significantly reduced our debt load and has allowed us to focus resources on marketing and making additional investments in product development. As consumer demand for HDTV programming increases, we remain optimistic that the increased levels of industry spending we are beginning to experience will continue to grow." |
