$0.05 net BUT $0.11 excluding one time charges!!!!!
REDWOOD CITY, Calif.--(BUSINESS WIRE)--Feb. 3, 1997--Ampex
Corporation (AMEX:AXC) reported today net income of approximately
$2.2 million on sales of $24.2 million, for the fourth quarter of
1996, resulting in fully diluted earnings per share of $0.05, after
deducting expenses for patent infringement litigation with a foreign
consumer products manufacturer of approximately $0.04, and moving and
reorganization expenses of approximately $0.02 per share for the
quarter.
In the fourth quarter of 1995, the Company reported net income
from continuing operations of $4.5 million, on sales of $24.1
million, and fully diluted earnings per share of $0.11, including
restructuring credits of $0.03 and a tax benefit of $0.01. There
were no patent infringement litigation or moving and reorganization
costs during the fourth quarter of 1995.
For the year ended December 31,1996 on a preliminary unaudited
basis, Ampex generated net income from continuing operations of $12.7
million on sales of $96.5 million, and fully diluted earnings per
share of $0.28, compared to net income from continuing operations of
$19.4 million on sales of $95.7 million, and fully diluted earnings
per share of $0.46 for the comparable period in 1995. Patent
infringement litigation reduced earnings by approximately $0.11 per
share, and moving and reorganization costs reduced earnings by
approximately $0.03 per share for the year ended December 31, 1996.
There were no patent litigation or moving and reorganization
costs during the comparable period in 1995. Non-recurring royalty
settlements related to prior periods increased earnings by
approximately $0.04 per share and other non-recurring items increased
earnings by approximately $0.03 per share in the year ended December
31, 1996. Income in the year ended December 31, 1995 was increased
by non-recurring royalty settlements of approximately $0.21 per
share, restructuring credits of approximately $0.05 per share and a
tax benefit of $0.01.
Excluding the special items of income and expense referred to
above, net income from continuing operations would have been $5.1
million or $0.11 fully diluted earnings per share for the fourth
quarter of 1996 compared to $2.6 million or $0.07 fully diluted
earnings per share for the fourth quarter of 1995 while net income
from continuing operations for the year ended December 31, 1996 would
have been $15.9 million or $0.35 fully diluted earnings per share
compared to $7.0 million or $0.18 fully diluted earnings per share
for the comparable prior year period.
The increase in selling and administrative expenses of $1.9
million for the fourth quarter of 1996 compared to the fourth quarter
of 1995 and $4.5 million for the comparable yearly periods was
entirely related to the ongoing patent infringement litigation with a
foreign consumer products manufacturer.
In the fourth quarter and full year of 1995 the Company also
recorded a non-cash gain from discontinued operations of $43.9
million from the disposition of its magnetic tape subsidiaries.
Sales of 19 millimeter data storage and instrumentation products
more than doubled between comparable quarterly and yearly periods and
offset declines in sales of other instrumentation recorders and of
professional television and television aftermarket products. Gross
margin percentages for the fourth quarter of 1996 decreased to 46.6%
from 48.1% for the fourth quarter of 1995 and from 45.9% to 45.7% for
the comparable yearly periods, primarily due to the Company's
previously announced decision to lower prices of its 19 millimeter
data storage and instrumentation products to broaden their appeal to
emerging commercial mass data storage applications.
Ampex Corporation is one of the world's leading innovators in the
fields of magnetic recording, image processing and high-performance
digital storage. Ampex is currently focusing its technology on the
emerging market for mass data storage in the visual information age.
During its 50-year history of innovation, Ampex has been granted
thousands of patents and numerous awards for technical achievement.
Headquartered in Redwood City, California, Ampex's customers today
include such leading organizations as Boeing, Eastman Kodak, Mobil
Oil, Time Warner and NASA.
Any statements contained herein that are not historical facts are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, and involve risks and
uncertainties. Information on potential factors which could affect
the Company's actual results of operations are included in its
filings with the Securities and Exchange Commission, including but
not limited to its 1995 Annual Report on Form 10-K, its 1996
Quarterly Reports on Form 10-Q and its Annual Report on Form 10-K
for the fiscal year ended December 31, 1996 which is expected to be
filed shortly. |
