[CHY Reports Q2 Results]
Thursday July 27, 7:11 am Eastern Time
Company Press Release
Chyron Corporation Announces Second Quarter Results
MELVILLE, N.Y.--(BUSINESS WIRE)--July 27, 2000--Chyron
Corporation (NYSE: CHY - news), a leading provider of
broadcast hardware, software and services spanning television
and the Internet, today announced financial results for the
second quarter ended June 30, 2000.
Revenue for the three and six month periods ended June 30,
2000 was $16.0 million and $30.8 million, respectively,
compared to $16.2 million and $31.2 million for the same
periods last year. Net loss for the three and six months
ended June 30, 2000 was $1.9 million or $0.05 per share and
$4.2 million or $0.12 per share, compared to a loss of $25.2
million or $0.78 per share and $27.0 million or $0.84 per
share in the same periods last year. Results for second
quarter 1999 included a $6.7 million restructuring and other
non-recurring charge.
Gross margins for the quarter increased from 45.8% to 47% in
the comparable quarter in 1999, exclusive of a $2.2 million
writedown of inventory. The improvement in gross margin was
primarily a result of product redesigns and lower overhead
costs in the graphics sector.
Commenting on the quarter, Roger Henderson, chief executive
officer of Chyron, said, ``From my point of view our overall
financial performance this quarter was disappointing. Both
our Graphics and Pro-Bel divisions have faced difficult
market conditions due to the uncertainty over digital roll
out in their respective markets and in addition Pro-Bel has
faced the competitive problems associated with a weak Euro.
However, the strategy we adopted last year to realign our
graphics products with our existing customers' needs is
bearing fruit in some areas, notably with the Aprisa and
Lyric/DUET product lines.''
Henderson continued, ``This quarter we launched Clari.net,
our new encoder product for streaming media to the Web. We
also began the process of forming a streaming media services
business to provide outsourced solutions for media streaming,
encoding and storage. This initiative brings together our
expertise in controlling media streams, asset management and
video and audio knowledge. It also leverages our strong brand
recognition and customer base. We are in the process of
building the infrastructure to launch this business and have
already recruited certain key staff and located our first
premises. We continue to firmly believe that these
initiatives are the right ones to propel Chyron forward.''
About Chyron
Chyron Corporation through its Chyron Graphics and Pro-Bel
divisions has established itself as the worldwide leader in
the innovation and development of integrated broadcast
graphic systems and distribution systems, including products
that meet the demands of digital and high-definition
television.
Chyron Graphics division provides a broad range of leading-
edge hardware and software products, including paint and
animation systems, character generators and digital graphics
systems, along with stillstore and clipstore packages. Pro-
Bel manufactures products and systems for broadcast routing,
distribution, transmission and automation.
The company is also very involved in new media products for
Internet-related markets.
For more information about Chyron products and services,
please visit the Company website at chyron.com or
contact Chyron Corporation, 5 Hub Drive, Melville, NY 11747.
TEL: 1-631 845-2000; FAX 1-631 845-3867; EMAIL: info@chyron.com.
Certain of these statements contained in this press release
may be deemed forward-looking statements. Such statements,
and other matters addressed in this press release, involve a
number of risks and uncertainties. Among the factors that
could cause actual results to differ materially from these
statements and matters are the risks and other factors
detailed, from time to time, in the Company's reports
with the Securities and Exchange Commission, including, but
not limited to, the Company's Annual Reports on Form 10-K and
its Quarterly Reports on Form 10-Q.
All trademarks are the property of their respective owners.
CHYRON CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
---- ---- ---- ----
Net sales..................... $16,015 $16,199 $30,824 $31,197
Cost of products sold......... 8,490 11,035 16,862 19,286
-------- -------- -------- --------
Gross profit.................. 7,525 5,164 13,962 11,911
-------- -------- -------- --------
Operating expenses:
Selling, general and
administrative.......... 7,469 7,363 13,393 14,640
Research and development. 1,724 1,995 3,503 3,839
Restructuring and other
nonrecurring charges.... - 6,681 - 6,681
-------- -------- -------- --------
Total operating expenses...... 9,193 16,039 16,896 25,160
-------- -------- -------- --------
Operating loss................ (1,668) (10,875) (2,934) (13,249)
Interest and other expense,
net.......................... 243 227 1,221 529
-------- -------- -------- --------
Loss before provision for
income taxes................. (1,911) (11,102) (4,155) (13,778)
Provision for income taxes.... - 14,076 - 13,250
-------- -------- -------- --------
Net loss...................... $(1,911) $(25,178) $(4,155) $(27,028)
======== ======== ======== ========
Net loss per common share -
basic and diluted............ $(.05) $(.78) $(.12) $(.84)
======== ======== ======== ========
Weighted average shares used
in computing net loss per
common share - basic and
diluted...................... 35,049 32,086 33,589 32,080
======== ======== ======== ========
Chyron Corporation
Condensed Consolidated Balance Sheets
(In thousands)
June 30, 2000 December 31, 1999
------------- -----------------
(Unaudited)
Assets
Cash and cash equivalents $18,045 $5,453
Accounts receivable 13,251 11,751
Inventories 14,628 13,766
Other current assets 5,522 1,038
---------- --------
Total current assets 51,446 32,008
Non current assets 20,296 26,373
---------- --------
Total assets $71,742 $58,381
========== ========
Liabilities and shareholders' equity
Current liabilities $14,435 $14,247
Non current liabilities 19,232 21,622
---------- --------
Total liabilities 33,667 35,869
---------- --------
Shareholders' equity 38,075 22,512
---------- --------
Total liabilities and
shareholders' equity $71,742 $58,381
========== ========
Contact:
Company Contact:
Chyron Corporation
Dawn Johnston, CFO
631-845-2000
djohnston@chyron.com
or
Investor Relations:
Lippert/Heilshorn & Associates
Jody Burfening/Ted Crawford
212-838-3777
Jody@lhai.com / ted@lhai.com |
