[CHY Reports Q2 results...]
Monday August 6, 4:06 pm Eastern Time
Press Release
SOURCE: Chyron Corporation
Chyron Reports 2001 Second Quarter Results
Banner Quarter for Duet Sales
MELVILLE, N.Y.--(BUSINESS WIRE)--Aug. 6, 2001--Chyron Corporation (OTC BB: CYRO), today announced financial results for the quarter
ended June 30, 2001.
Total revenue for the quarter ended June 30, 2001 was $13.2 million consisting of $5.1 million in revenue from the graphics division and $8.1
million in revenues from the signal distribution and automation division. Total revenue for the same quarter last year was $16.0 million, with $7.3
million in revenue from the graphics division and $8.7 million from the signal distribution and automation division. Revenues for the second quarter
2001 grew sequentially compared to the first quarter: total revenues increased 24%; revenues from the graphics division increased 20%; and,
revenues from the signal distribution and automation division grew 30%. Revenues from Duet more than doubled in the second quarter compared to
the prior quarter.
The Company reported a net loss for the second quarter of $13.5 million, or $0.34 per share, compared to a net loss of $1.9 million, or $0.05 per
share, for the comparable quarter in 2000. In addition, the Company reported $8.3 million in restructuring and other non-recurring charges consisting
of $7.0 million in non-cash write-downs of goodwill and fixed assets primarily related to the Company's streaming media initiative, $0.7 million in
severance costs and $0.6 million of facility and other costs. Excluding the charges, the net loss for the second quarter of 2001 was $5.2 million, or
$0.13 per share.
Highlights for 2Q01:
Increased market penetration in Europe with its DUET product line. Recent European users of Duet include Studio Hamburg (Germany),
SIC (Portugal), CTV (Spain), BBC TV (UK) and Eurosport and The France Television Group (France 2 and France 3) in France
Strengthened presence in Asia Pacific Region with recent sales and installations of the Pro-Bel product line. Recent Asian customers include
CCTV (China Central TV), SUN Satellite Television Co Ltd., RTHK (Radio Television Hong Kong) and Meishi Broadcasting Network.
Signal distribution and automation division secured a $1.45 million contract to upgrade BBC Technology's Digital Transmission Area (DTA)
Signal distribution and automation division completed a $0.5 million project for a Super Duo system for Turner Broadcasting System, Inc.'s
flagship entertainment network, TBS Superstation and WTBS, Atlanta, which reach more than 83 million U.S. homes
``During the second quarter, we saw sequential improvement in each of our divisions,'' said Roger Henderson, president and chief executive officer
of Chyron. ``We believe that our continued success stems from new customer wins, growing market acceptance of new products, and improved sales
execution. Our strong brand recognition and installed customer base are proving especially beneficial in competitive selections of our DUET product
line. In addition, we continue to see synergistic benefits with our existing customer base for our interactive TV initiative.
``We continue to exercise discipline and careful control over our spending. We are also beginning to realize the benefits from the cost reduction
actions we have taken this year, and we expect to generate savings of approximately $1 million per quarter in operating expenses in the second half of
2001,'' Henderson added. ``While we have seen substantial improvement in revenues over Q1, driven in part by the payoff from last quarter's NAB
conference, the economic outlook in our markets is still very uncertain for the remainder of the year. The European markets in particular may well
experience a downturn.''
The slow pace of demand for streaming media content and the current market environment for Internet related spending has impacted the Company's
ability to achieve its internal revenue targets in this sector. Consequently, the Company has discontinued its streaming services business.
Commenting on this decision, Henderson said, ``While we believe in the long-term potential of streaming media, it simply is not economical for us to
invest further time and resources in this initiative at this time.''
From time to time, including in this press release, the Company may publish forward-looking statements relating to such matters as anticipated
financial performance, business prospects, technological developments, changes in the industry, new products, research and development activities and similar matters. The Private Securities
Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that a variety of factors could
cause the Company's actual results to differ materially from the anticipated results or other expectations expressed in the Company's forward-looking statements. The risks and uncertainties
that may affect the operations, performance, development and results of the Company's business include, without limitation, the following: product concentration in a mature market,
dependence on the emerging digital market and the industry's transition to DTV and HDTV, consumer acceptance of DTV and HDTV, resistance within the broadcast or cable industry to
implement DTV and HDTV technology, weakness in the market for digital media services, rapid technological changes, use and improvement of the Internet, new technologies that could
render certain Chyron products to be obsolete, a highly competitive environment, competitors with significantly greater financial resources, new product introductions by competitors,
seasonality, fluctuations in quarterly operating results, ability to maintain adequate levels of working capital, the viability of the OTC Bulletin Board as a trading platform, expansion into new
markets and the Company's ability to successfully implement its acquisition and strategic alliance strategy.
Serving the television industry for three decades, Chyron Corporation has established itself as a leading innovator in the development of television graphics and distribution systems, including
products to meet the demands of digital and interactive television. Chyron provides a broad range of leading-edge hardware and software products, including graphics platforms, paint and
animation systems, character generators, signal distribution systems, master control switchers, broadcast automation and media management. For more information about Chyron products
and services, please visit the company website at www.chyron.com.
All trademarks are held by their respective companies.
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Condensed Consolidated Statements of Operations
(In thousands except per share data)
Three Months Ended
June 30,
(Unaudited)
2001 2000
Net sales $13,226 $16,015
Gross profit 4,928 7,525
Operating expenses:
Selling, general and
administrative 8,173 7,469
Research and development 1,478 1,724
Restructuring and
non-recurring charges 8,303 _____
Total operating expenses 17,954 9,193
Operating loss (13,026) (1,668)
Interest and other expense, net 499 243
Net loss $(13,525) $(1,911)
Loss per common share -
basic and diluted $(.34) $(.05)
Weighted average number of
common and common equivalent
shares outstanding 39,530 35,049
Condensed Consolidated Balance Sheets
(In thousands)
June 30, December 31,
2001 2000
(Unaudited)
Assets:
Cash and cash equivalents $ 2,334 $15,332
Accounts receivable 11,403 13,365
Inventories 14,403 14,503
Other current assets 1,792 2,084
Total current assets 29,932 45,284
Non-current assets 17,248 20,544
Total assets $47,180 $65,828
Liabilities and shareholders' equity:
Current liabilities $15,971 $14,265
Non-current liabilities 18,166 18,602
Total liabilities 34,137 32,867
Shareholders' equity 13,043 32,961
Total liabilities and
shareholders' equity $47,180 $65,828
Contact:
Chyron Corporation, Melville
Dawn Johnston, 631/845-2000
djohnston@chyron.com
or
(Investor Relations)
Lippert/Heilshorn & Associates, New York
Jody Burfening/Kristine Hong
212/838-3777
jburfening@lhai.com / khong@lhai.com |
