Tri-Vision International Ltd./Ltee today reported its unaudited
financial results for the quarter ended June 30, 1998.
In the first quarter, the Company has focused on the marketing
launch of the V-chip product line without sacrificing the sales
growth of the traditional CATV product line.
The Company reported first quarter revenues of $1,698,000
compared to $1,060,000 in the first quarter of 1997. Product
sales increased by approximately 60% over the corresponding
period in 1997, reflecting an increased demand for the
traditional CATV product line. Gross margins improved to 22.6%
from 11.1% in the corresponding period in 1997, on account of
sales shifts to higher gross margin products. Selling, general,
administrative and research and development expenses, net of
deferrals for product development and v-chip marketing expenses,
increased from $340,000 in the first quarter of 1997 to $434,000
in the first quarter of 1998. This increase is primarily the
result of a higher provision for doubtful accounts receivable and
an increase in administrative staffing expense. The Company
realized interest income of $97,000 in the first quarter 1998 as
a result of additional cash provided through the public offering
in early April, compared to a $5,000 interest expense in the
corresponding quarter in 1997.
The Company earned $26,000 ($.001 per share) for the quarter
compared to a restated net loss of $155,000 ($.004 per share) for
the corresponding period last year, mainly due to higher sales
and improved margins.
Financing activities in the first quarter 1998 amounted to
$12,318,000 compared to $7,947,000 in the corresponding period in
1997. In 1997, common shares valued at $7,920,000 were issued to
acquire the worldwide rights to the v-chip technology. The
public offering, completed in the first quarter of 1998, raised
net proceeds of $12,526,000. Operating activities used
$3,672,000 in the first quarter 1998 compared to generating
$1,932,000 in the corresponding period of 1997. Payment of
$1,900,000 in notes payable for the v-chip license, $845,000 of
v-chip marketing expense, and the purchase of $628,000 of v-chip
components for inventory represent the majority of these
operating expenditures in the first quarter of 1998.
The Company's cash balance as of June 30,1998 amounted to
$7,875,000 compared to bank indebtedness of $290,000 a year
earlier. The major contributing factor to this increase in cash
was the public offering completed in the first quarter of 1998.
The financial results for the first quarter of 1997 have been
restated to conform to the 1998 financial statement presentation.
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