Q2 results - "Importantly, we were cash positive..."
CYRO.OB 0.30 +0.01
August 13, 4:31 pm Eastern Time
Press Release
SOURCE: Chyron Corporation
Chyron Reports 2002 Second Quarter Results
MELVILLE, N.Y.--(BUSINESS WIRE)--Aug. 13, 2002--
Chyron Corporation (OTCBB:CYRO - News) today
announced financial results for the second quarter
ended June 30, 2002.
Total revenue for the quarter ended June 30, 2002 was
$10.3 million consisting of $5.9 million in revenue from
graphics division and $4.4 million in revenue from
signal distribution and automation division. Total
revenue for the same quarter last year was $13.2
million, with $5.1 million from the graphics division,
$8.1 million from the signal distribution and automation
division and a minimal amount of revenue from the
streaming services division that was discontinued in
the second quarter of last year. Revenues for the
second quarter grew $0.2 million or 2% over revenues
for the first quarter of 2002, with graphics division
revenues up $1.0 million or 22% and signal distribution
and automation division revenues down $0.8 million or 16%.
The Company reported a net loss for the second
quarter of $1.0 million, or $0.02 per share, compared to
a net loss of $13.5 million, or $0.34 per share, for the
comparable quarter of 2001 and a net loss of $0.8
million, or $0.02 per share, for the first quarter 2002.
The second quarter 2001 results included $8.3 million
of restructuring and other unusual charges; excluding
those charges, the net loss for second quarter 2001
was $5.2 million, or $0.13 per share. Included in the
second quarter 2002 net loss was a foreign exchange
gain of $0.3 million as compared to a minimal foreign
exchange gain in the second quarter of 2001 and a
foreign exchange loss of $0.1 million in the first quarter
of 2002.
Earnings before interest, taxes and depreciation and
amortization (EBITDA) for the second quarter were $0.2
million as compared to a $11.6 million loss for the
second quarter of 2001 and a $0.4 million profit for the
first quarter of 2002. In arriving at these EBITDA
amounts, net interest of $0.5 million, $0.4 million and
$0.6 million and depreciation and amortization of $0.7
million, $1.5 million and $0.6 million, have been added
back to reported net loss for the second quarter of
2002, second quarter of 2001 and first quarter of 2002,
respectively.
"I continue to be pleased with the progress that Chyron
has demonstrated in the first half of this year despite
the slowdown in the US economy and the sluggish
economies in our primary markets in Europe," said
Roger Henderson, President and CEO. "Our revenues
continued to be stable and we were earnings positive
on an EBITDA basis for the quarter. Our gross margins
in the second quarter were slightly lower than the first
quarter due to aggressive pricing on two large sales,
but because of our success in the sales of our
graphics and automation products and our strong
product line up, our margins, while under pressure, are
holding up well. Importantly, we were cash positive for
the quarter. Our expectation continues to be that the
markets in which we operate will continue to be
relatively flat for the remainder of 2002, with the US, UK
and rest of Europe economic climates not improving
substantially until mid 2003."
"This quarter was a very busy time for us as we
launched key new products which have expanded our
ability to meet our customers' requirements and keep
us in a leadership position. These include:
* DUET LEX - A compact, affordable and powerful
engine that enables the use of virtually unlimited 2D
and 3D animations in CG applications.
* Lyric plug-in for Avid AVX Editors - Now editors using
Avid's AVX products have access to the award
winning Lyric CG application in an integrated
environment.
* DigiBox CODI - A standalone graphics and animation
system enabling solutions for weather, school
closings, news/business tickers, sports, logo
insertion, subtitling, and emergency alerts.
* DigiScribe - Software providing broadcast quality CG
graphics for Chyron's board-level PCI card solutions.
* NewsCrawl and NewsCrawl Lite - Award winning
application that enables a Duet SD, LEX, or PCI
character generator user to insert automated lower
third news, weather, sports or data crawls into
program video.
* Axis HD - Small scale routing solution for HD and SD
applications.
* Sirius - Award winning, multi-format mid range router
providing signal conversion as a function of signal
routing.
"While economic conditions were less than ideal, we
have been encouraged that the FCC is taking a
proactive role in promotion of Digital TV in the U.S. We
see recent pronouncements, including the requirement
for all TV sets to include a digital tuner from 2007, as
positive steps to enabling the long promised digital
transition."
Other highlights for 2002 Second Quarter included:
* Delivery of 12 DUETs to Canal Plus in France for use
in live to air sports applications.
* Supplying DUET graphics tools to FOX Sports to
provide on-air coverage of NASCAR, the season's
highest rated sport.
* Delivery of Eclipse, Freeway, ICON and Aurora at
CNN's new transmission center in London, England.
* Delivery of ICON and COSMOS to Shan Dong TV, and
TX 420 Master Control switcher to Guangzhou TV.
Both are new customers in China.
* Integration of Lyric with Liberate Technologies
Mediacast server to enable TV graphics
professionals to develop content with embedded
interactive triggers allowing, for example, subscribers
to vote or bet in real time via their remote control.
* Releasing Lyric iTV as one of the first products to
integrate into Avid's Metasync program, allowing post-
production professionals to synchronize Metadata
with Video and Audio and hence tap into new revenue
streams, such as closed captioning and subtitling
text insertion, interactive TV content delivery and
"converging media" applications.
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, 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 strategic alliance strategy.
Serving the television industry for three decades,
Chyron Corporation (OTCBB:CYRO - News) 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 on- and off-line content creation
software, character generators, clip and still store
products, signal distribution systems, master control
switchers, broadcast automation and media
management. For more information about Chyron
products and services, please visit the company Web
site at www.chyron.com.
All trademarks are held by their respective companies.
CHYRON CORPORATION
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands except per share data)
Three Months Ended
June 30,
2002 2001
---- ----
Net sales $10,297 $13,226
Gross profit 5,269 4,928
Operating expenses:
Selling, general & administrative 5,040 8,173
Research & development 1,004 1,478
Restructuring and other unusual charges -- 8,303
------- --------
Total operating expenses 6,044 17,954
------- --------
Operating loss (775) (13,026)
Interest and other expense, net 212 499
------- --------
Net loss $(987) $(13,525)
======= ========
Loss per common share - basic and diluted $(.02) $(.34)
Weighted average number of common and
common equivalent shares outstanding 39,564 39,530
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
June 30, Dec. 31,
2002 2001
---- ----
Assets:
Cash and cash equivalents $2,260 $4,342
Accounts receivable, net 7,813 8,029
Inventories, net 8,832 9,081
Other current assets 761 473
------- ------
Total current assets 19,666 21,925
Non-current assets 10,709 11,974
------- ------
Total assets $30,375 $33,899
======= =======
Liabilities and shareholders' equity
(deficit):
Current liabilities $14,138 $17,559
Non-current liabilities 17,443 16,027
------- -------
Total liabilities 31,581 33,586
Shareholders' equity (deficit) (1,206) 313
------- -------
Total liabilities and shareholders'
equity (deficit) $30,375 $33,899
======= =======
------------------------------------------------------------------------
Contact:
Chyron Corporation, Melville
Roger Henderson, 631/845-2000
rhenderson@chyron.com
or
Jerry Kieliszak, 631/845-2000
jerryk@chyron.com
Source:
biz.yahoo.com |
