[Q4 results: $0.15/share loss.]
Thursday February 22, 4:57 pm Eastern Time
Press Release
Chyron Corporation Announces Fourth Quarter Results
MELVILLE, N.Y.--(BUSINESS WIRE)--Feb. 22, 2001--Chyron
Corporation (NYSE:CHY - news), a leading provider of
broadcast technology, today announced financial results for
the fourth quarter ended December 31, 2000.
Revenues for the three and twelve month periods ended
December 31, 2000 were $11.4 million and $56.3 million,
respectively, compared to $12.8 million and $60.7 million for
the same periods last year. Net losses for the three and
twelve month periods ended December 31, 2000 were $5.4
million, or $0.15 per share, and $11.9 million, or $0.34 per
share, compared to net losses of $1.8 million, or $0.06 per
share, and $29.8 million, or $0.93 per share, in the same
periods last year. Results for the twelve months ended
December 31, 1999 included restructuring and other non-
recurring charges totaling $6.7 million, or $0.21 per share.
Fourth quarter 2000 revenues from the graphics division were
$6.2 million compared to $6.6 million in the fourth quarter
of 1999. Revenues continue to be impacted by the shift from
the high-end iNFiNiT! products to the lower priced Windows
NT-based Duet and Aprisa clip/stillstore products.
Revenues from the signal distribution and automation division
were $5.2 million compared to $6.2 million in the same period
last year. The decline is attributable to unfilled orders
resulting from disruptions caused by the implementation of
the division's new inventory-management system and to
negative foreign exchange rates, which reduced revenues by 7%.
Fourth quarter operating expenses were $2 million higher than
in the comparable quarter in 1999. This was due to a $3
million increase associated with the launch of the Company's
two new divisions, Streaming Services and Interactive, offset
by an overall decrease in expenditures in the Company's core
graphics and signal distribution and automation products businesses.
During the fourth quarter of 2000 the Company utilized cash
to fund the operating losses and other changes in working
capital and to invest in infrastructure in the Streaming
Services business. Investing activities, including the $6
million investment by Microsoft, were favorable and overall
changes in cash were minimal. The cash balance at the end of
2000 was approximately $15.0 million. Subsequent to the close
of the quarter, the Company acquired Interocity Development
Corporation (Interocity) for $5 million.
``The year 2000 was important for Chyron as we made
tremendous progress in executing our strategy to carry Chyron
into new markets such as streaming services and interactive
TV,'' commented Roger Henderson, chief executive officer of Chyron.
``We are very excited about our expanded relationship with
Microsoft. In addition to investing $6 million in our
Company, Microsoft is working with us to develop
opportunities in the streaming media and interactive TV
markets. Besides Microsoft, we formed a number of important
new partnerships in this space with Liberate and Mixed
Signals. We also completed a successful pilot with Home &
Garden TV that broadcast real-time coverage of the Rose Bowl
parade marking the first use of real-time interactivity using
Chyron Graphics products.''
``We continued to build out our Streaming Services business
and added new customers such as Alcoa-Thiokol Propulsion,
Hollinger Telegraph and Freelotto.com,'' continued Henderson.
``With the recent acquisition of Interocity, we have added
significantly to our customer base, content creation
capability, technology and revenue generating ability. We
also have strengthened the management team with the
appointment of Rebecca Howland to the position of President
of Chyron Streaming Services.''
Concerning the outlook for Chyron, Henderson said, ``We
remain a leader in the provision of signal distribution and
graphics products for the broadcast industry and, as the
transition to digital occurs, we are well positioned to
succeed. However, our customers are facing capital budget
constraints in anticipation of a slowdown in the U.S.
economy, and we are seeing few signs of growth in our
traditional markets. This has led us to approach 2001 with
caution, adopting a modest outlook for growth and sizing
our business accordingly.
``We expect that quarterly graphics revenues throughout 2001
will be fairly consistent with the fourth quarter of 2000.
With regard to signal distribution and automation products,
we expect that revenues for the first quarter 2001 will
increase by approximately 20% as we fill the backlog of
shipments, with revenues in the remaining quarters of 2001
fairly consistent with first quarter levels. By integrating
Interocity into the Streaming Services business, we should be
able to grow revenues in this division to a level that will
represent approximately 10% of consolidated revenues on an
annual basis.''
Henderson concluded, ``We strongly believe that our core
businesses must remain sized at a level that will not reduce
our cash balances while we continue to invest prudently in
our new initiatives. We operate in a rapidly changing
environment and remain responsive to changes as they occur.
We have configured our business with a substantial level of
variable cost, giving us the flexibility to reduce costs
should economic conditions worsen.
``We continue to believe the streaming services and
interactive markets represent meaningful growth opportunities
for Chyron. While the markets for our core businesses remain
static and the business and regulatory environments
uncertain, we plan to take full advantage of the opportunities
presented by streaming services and interactive TV.''
About Chyron
Chyron Corporation is the world leader in the development and
delivery of products and services in the media casting market
- an area which delivers media to consumers that includes
high definition TV, standard definition TV, interactive TV or
any form of broadband. The Company provides broadcast
graphics, high bandwidth and multi media signals, streaming
media technology and content management. Chyron is the only
global company with 30 years of expertise and technology to
provide the services and solutions for streaming media and
interactive television, enabling the highest quality
experience to be delivered to consumers.
Chyron Corporation's existing customer base is comprised of
nearly all television stations and TV networks throughout
Europe and North America. With offices in the U.K., France,
Hong Kong and U.S. and an enviable client list that includes
the world's leading broadcasters, Chyron has been providing
the owners of content with value added products and services
for over 30 years.
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: 1-631-845-3896; 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.
-0-
CHYRON CORPORATION
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands except per share data)
Three Months Ended Year Ended
December 31, December 31,
2000 1999 2000 1999
Net sales $11,421 $12,756 $56,272 $60,709
Gross profit 4,964 6,041 25,928 26,058
Selling, general &
administrative 8,726 6,580 29,858 28,166
Research & development 1,569 1,578 6,862 7,315
Restructuring and other
non-recurring charges 6,681
Total operating expenses 10,295 8,158 36,720 42,162
Operating loss (5,331) (2,117) (10,792) (16,104)
Gain on sales of
investments 130 541 607 541
Interest and other
expense, net (182) (507) (1,723) (1,272)
Loss before provision
for income taxes (5,383) (2,083) (11,908) (16,835)
Benefit (provision) for
income taxes 301 (12,949)
Net loss (5,383) (1,782) (11,908) (29,784)
Loss per common share -
basic and diluted $(.15) $(.06) $(.34) $(.93)
Weighted average number
of common and common
equivalent shares outstanding 36,662 32,089 34,824 32,084
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
December 31, December 31,
2000 1999
Assets:
Cash and cash equivalents $15,332 $5,453
Accounts receivable 13,365 11,751
Inventories 14,503 13,766
Other current assets 2,084 1,038
--------- ------------
Total current assets 45,284 32,008
Non-current assets 20,544 26,373
--------- ------------
Total assets $65,828 $58,381
========= ============
Liabilities and shareholders'
equity:
Current liabilities $14,265 $14,247
Non-current liabilities 18,602 21,622
--------- ------------
Total liabilities 32,867 35,869
Shareholders' equity 32,961 22,512
--------- ------------
Total liabilities and
shareholders' equity $65,828 $58,381
========= ============
Contact:
Chyron Corporation, Melville
Dawn Johnston, CFO, 631/845-2000
djohnston@chyron.com
or
Lippert/Heilshorn & Associates, New York
Jody Burfening
Jody@lhai.com
Ted Crawford
ted@lhai.com
212/838-3777 |
