Tri-Vision first-quarter results
Tri-Vision International Ltd TVL
Shares issued 48,577,396 Aug 25 close $1.55
Thu 26 Aug 99 News Release
Mr. Najmul Siddiqui reports
Financial highlights of the three-month period ended June 30, 1999,
included the execution of the first licensing agreement with a television
manufacturer for the V-gis v-chip technology and a revenue increase of
almost 24 per cent.
"During the first quarter of the fiscal 2000, Tri-Vision and Nichimen
Corporation continued their intense focus on the licensing of the unique,
flexible V-gis v-chip technology for inclusion in new televisions," said
Tri-Vision president and chief executive officer, Najmul Siddiqui. "These
efforts resulted in the licensing of the technology to the first television
manufacturer, Sharp Corporation of Japan, in mid-June."
Siddiqui added that the company also furthered its marketing efforts for
the V-gis v-chip set-top decoder and traditional CATV product lines.
For the period ending June 30, 1999, the company reported that revenues
increased almost 24 per cent to over $2-million, compared with $1.7-million
in the same period in 1998.
Gross profits for the period also increased as a percentage of sales.
Selling, general, administrative and research and development expenses, net
of deferrals for product development, increased from $434,000 in the first
quarter of 1998 to $585,000 for the same period in 1990. The company had
net interest expense of $2,000 over the first three months, compared with
interest income of $97,000 over the same period in 1998.
The company earned $138,000 before income taxes for the period, compared
with $48,000 before income taxes for the corresponding period last year.
The net income was 187-per-cent higher than the corresponding period last
year, even though R&D expenses deferred in this period were only $80,000,
compared with $203,000 in the same period last year.
Operating activities used $667,000 in the first three months of 1999,
compared with using $3,672,000 in the corresponding period in 1998.
Bank indebtedness, as of June 30, 1999, amounted to $109,000, compared with
a cash balance of $7,875,000 a year earlier. The major contributing factor
to this decrease in cash was the production and inventory buildup of v-chip
decoders, new CATV products and V-gis test-launch marketing and advertising
payments.
In accordance with the U.S. Telecommunications Act of 1996, the Federal
Communications Commission has mandated that from Jan. 1, 2000, all
televisions sold in the U.S., with a picture screen 13 inches or greater,
must be equipped with v-chip blocking capability. Tri-Vision and Nichimen
continue licensing discussions with television manufacturers for the
patented V-gis v-chip technology. Uniquely, Tri-Vision's flexible V-gis
technology meets all FCC requirements for v-chip blocking and also provides
consumers and TV manufacturers with the assurance that new v-chip
televisions, incorporating Tri-Vision's V-gis technology will not become
obsolete when program ratings change.
CONSOLIDATED STATEMENT OF INCOME
Quarter ended June 30
(thousands of dollars)
1999 1998
Sales and revenues $ 2,101 $ 1,698
Cost of sales 1,376 1,313
--------- ---------
Gross profit 725 385
--------- ---------
Operating expenses
Selling general
and administrative
and research
and development
expenses 665 637
Deferral of
development
costs during
the period (80) (203)
--------- ---------
585 434
--------- ---------
Income (loss)
from operations 140 (49)
Net interest
revenue (expense) (2) 97
--------- ---------
Net income before
income tax 138 48
Income tax
expense (recovery) - 22
--------- ---------
Net income
after tax 138 26
========= =========
Earnings
per share 0.3 cents 0.1 cent
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