TVL 9 month results. Doesn't look all that great to me. Could signal a retreat today. I don't think any of you guys are still playing this other than the longterm holders, but thought this might be of interest to anyone who's still in ;-)
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Tri-Vision International Ltd TVL
Shares issued 48,577,396 1999-02-08 close $0.97
Monday Feb 8 1999
An anonymous director reports
During the first nine months of the fiscal year, Tri-Vision has been intensely focused on the development and testing of marketing strategies for its V-gis v-chip decoder product line and the licencing of this patented, flexible v-chip technology for inclusion in new televisions. These activities involved significant expenditures relating to the production of V-gis v-chip decoders and related advertising and marketing support expenses for the test market study that should be recouped once full-scale introduction of the V-gis product is achieved.
For the nine months ending Dec. 31, 1998, the company reported revenues slightly over $4-million, derived primarily from its traditional product line, compared to $5.4-million in the same period in 1997. Traditional CATV product sales decreased over the corresponding period in 1997, reflecting an increased corporate focus on the launch of the unique, patented V-gis v-chip product line.
Gross profits for the period remained constant as a percentage of sales. Selling, general, administrative and research and development expenses, net of deferrals for product development, increased from $1,012,000 in first three quarters of 1997 to $1,301,000 for the same period in 1998. The company realized interest income of $171,000 over the first nine months in 1998, primarily the result of additional cash provided through the public offering in early April 1998, compared to an expense of $62,000 over the same period in 1997.
The company lost $307,000 (.63 cent per share) for the period compared to a restated net loss of $87,000 (.21 cent per share) for the corresponding period last year, mainly due to lower sales of traditional product lines and decreased allocation to research and development.
Operating activities used $8,267,000 in the first nine months of 1998 compared to using $1,011,000 in the corresponding period of 1997. Payment of $455,000 accounts payable and accrued liabilities, $3,233,000 of accrued v-chip and other marketing expenses, and production of the initial V-gis V-chip decoder unit inventory of $4,508,000 represent the majority of these expenditures in the period.
The company's cash balance as of Dec. 31, 1998 amounted to $1,029,000 compared to bank indebtedness of $967,000 a year earlier. The major contributing factor to this decrease in cash was the production of V-chip decoders and related V-gis test-launch marketing and advertising prepayments.
During the course of the test marketing exercise, sales of V-gis v-chip decoder units were much less than anticipated in light of early market research that indicated a broad awareness of the v-chip and strong consumer interest. Tri-Vision and its retail distributor in the United States, Ingram Entertainment, continue to refine the marketing strategy for the V-gis decoder with the expectation that stronger sales of the decoder product will be achieved at the time new televisions, with V-gis v-chip technology branding, begin to appear in electronics retail stores in the U.S.
On Feb. 2, 1999, Tri-Vision International and Nichimen Corp. announced that Sharp Corp. of Japan has signed a letter of intent to licence Tri-Vision's V-gis v-chip technology for inclusion in new TVs.
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