The reason for the last drop:
August 6, 1996
TSX Expects To Miss Analysts' First Quarter EPS By
About $0.05
EL PASO, Texas--(BUSINESS WIRE)--Aug. 6, 1996--TSX
Corporation (Nasdaq/NM: TSXX) today announced it expects its
CATV fiber optic and RF distribution business revenue and operating
income for the first quarter ended July 27, 1996, to be ahead of prior
year first quarter results and expects the company's advertising
insertion segment to record a loss.
Overall, the company expects earnings per share to be ahead of prior
year's $0.20 per share but less than analysts' consensus expectations of
approximately $0.25.
While the first quarter results have not been finalized, TSX expects
overall revenue to be 5 percent - 10 percent ahead of prior year first
quarter with its CATV revenue being approximately 20 percent ahead
of prior year, while its ad insertion revenues are about $2.5 million
below prior year first quarter.
Despite improved profitability for CATV operations, a loss is expected
in the company's ad insertion segment. The company's projected
earnings for the quarter incorporate a substantively lower tax rate than
prior year first quarter due to tax rate reduction measures taken by the
company.
Commenting on projected first quarter results, William H. Lambert,
president and chief executive officer, stated, "Our CATV business
remains strong with satisfactory revenue, gross profit and operating
income. We had expected our ad insertion business to be modestly
profitable.
However, our preliminary indications for the first quarter are that ad
insertion generated an operating loss, worsening that segment's
operating results by approximately $2 million from prior year. Bugs in
the controlling software of our new digital ad insertion business, which
have since been remedied, caused the cancellation and return of certain
products and significant additional expense. We are reviewing our
options for ad insertion.
"Our international business remains particularly strong. The contract
recently entered into with Ericsson of Sweden and their initial orders of
$2.8 million could provide the basis for market access internationally
into new areas where our scope has heretofore been limited."
The company expects to release its earnings the week of Aug. 19, 1996.
The estimates included herein are subject to change based on the actual
results as yet to be compilated.
Included in the preceding paragraphs are "forward-looking" statements
based upon the company's good faith expectations and beliefs which the
company believes are reasonable but which may differ materially from
actual results, depending upon the circumstances, and there can be no
assurance that the statements of expectation or belief will result or be
achieved or accomplished.
Taking into account the foregoing, the actual results could differ
materially from those expressed in such forward-looking statements as
a result of such important factors as the company's ability to compete
with high-technology competitors which may be larger, offer more
services and possess greater resources; the effects upon the company
and its customers of changes in United States and foreign trade and
monetary policies, laws and regulations, political and governmental
changes, inflation and exchange rates, taxes and operating conditions;
and the effects of new technological developments in the company's
rapidly changing, highly competitive technological environment.
Headquartered in El Paso, Texas, TSX Corporation
(http://www.tsx.com), through its Texscan subsidiary, is a leading
manufacturer of CATV fiber optic and RF distribution electronics and
electronic advertising insertion equipment.
CONTACT: TSX Corp., El Paso
Harold C. Tamburro, 915/543-4815
Kearney Associates Inc.
Edward R. Kearney, 215/579-9029 |
