Chyron Reports 2002 Fourth Quarter Results
Tuesday March 11, 5:00 pm ET
Press Release Source: Chyron Corporation
MELVILLE, N.Y.--(BUSINESS WIRE)--March 11, 2003--Chyron
Corporation (OTCBB: CYRO - News) today announced financial
results for the quarter ended December 31, 2002.
Total revenue for the fourth quarter ended December 31, 2002
was $10.4 million as compared to $10.9 million for the same
quarter last year and $10.6 million for the third quarter of 2002.
The Company reported a net loss for the fourth quarter of $0.3
million, or $0.01 per share, representing a significant improvement
over the net loss of $2.8 million, or $0.07 per share, for the fourth
quarter of 2001, and an improvement over the net loss of $0.9
million, or $0.02 per share, for the third quarter 2002. The fourth
quarter of 2002 results include a $0.5 million gain on the sale of a
parcel of vacant land in the U.K. Excluding this one-time gain,
fourth quarter 2002 net loss would have been $0.8 million, or
$0.02 per share. Results for the fourth quarter of 2001 include a
$0.6 million charge for severance in connection with the
Company's implementation of a restructuring plan to reduce
headcount in that quarter. Excluding that charge, fourth quarter of
2001 net loss would have been $2.2 million, or $0.06 per share.
Earnings before interest, taxes and depreciation and amortization
(EBITDA) for the fourth quarter were $0.7 million, representing the
fourth consecutive quarter of positive EBITDA. This compares to an
EBITDA loss of $1.7 million for the same quarter last year and a
positive EBITDA of $0.2 million for the third quarter of 2002. In
arriving at these EBITDA amounts, net interest of $0.5 million, $0.3
million and $0.6 million, and depreciation and amortization of $0.5
million, $0.8 million and $0.5 million, have been added back to
reported net loss for the fourth quarter of 2002, fourth quarter of
2001 and third quarter of 2002, respectively.
The Company reported consolidated revenue of $41.4 million and
a net loss of $3.0 million, or $0.08 per share, for the year ended
December 31, 2002. This compares to revenue of $46.2 million
and a net loss of $33.7 million, or $0.86 per share, for the year
ended December 31, 2001. Excluding the $0.5 million gain from
sale of land in 2002 and $12.5 million of goodwill impairment,
restructuring and unusual charges in 2001, net loss would have
been $3.5 million, or $0.09 per share, for the year 2002 and $21.2
million, or $0.54 per share, for the year 2001, respectively.
EBITDA for the year 2002 was $1.5 million as compared to an
EBITDA loss of $27.5 million for the year 2001. In arriving at these
EBITDA amounts, net interest of $2.2 million and $1.5 million,
respectively, and depreciation and amortization of $2.4 million and
$4.7 million, respectively, have been added back to reported net
loss for the years 2002 and 2001, respectively.
On a divisional basis, fourth quarter 2002 revenue for the graphics
division was $5.6 million, as compared to $4.8 million for the same
quarter last year and $4.8 million for the third quarter 2002. Fourth
quarter 2002 revenue for the signal distribution and automation
division was $4.9 million, as compared to $6.1 million for the same
quarter last year and $5.8 million for the third quarter of 2002. On a
full year basis, graphics division revenue was $21.1 million for
2002 as compared to $18.9 million for 2001, and signal
distribution and automation division revenue was $20.3 million for
2002 as compared to $27.1 million for 2001. The year 2001
included $0.2 million of revenue from the former streaming
services division that was closed down in the second quarter of
2001.
Michael Wellesley-Wesley, Chyron's President and C.E.O.
commented: "We are very pleased that the Company has achieved
four $10 million-plus revenue quarters for the year. We continue to
closely monitor our costs and expenses and further reduced our
operating expenses over the fourth quarter. For the year we
generated $0.5 million in cash from operating activities and $0.5
million from investing activities, the latter being primarily from
proceeds from the sale of a vacant parcel of land the Company
owned in the U.K. We used over $3.1 million to satisfy, on
schedule, financing obligations for term loans, a mortgage and
capital leases, and significantly reduced the amounts outstanding
on our revolving line of credit and overdraft facilities."
"We are especially pleased that in the fourth quarter two key, high
profile organizations selected Chyron to provide specialized
graphics solutions. Fox Sports Net ordered 55 Duet systems for
their customized sports ticker application and Liberty Broadcasting
ordered 24 Duet LEX systems and 30 Duet PCI+ board level
systems. Utilizing Chyron's CAMIO centralized graphics enterprise
solution, Liberty will create graphics in a central "hub" location for
playout at "spoke" stations. This will enable Liberty to radically
change its workflow model while maintaining a very high level of
quality. The two orders represented over $2 million in net bookings
and clearly put Chyron graphics solutions in the forefront of
evolving workflow models."
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 the property of their respective owners.
CHYRON CORPORATION
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands except per share data)
Three Months
Ended Year Ended
December 31, December 31,
2002 2001 2002 2001
---- ---- ---- ----
Net sales $ 10,413 $ 10,931 $ 41,379 $ 46,182
Gross profit 5,155 3,995 21,402 15,011
Operating expenses:
Selling, general &
administrative 4,609 5,003 19,042 28,952
Research & development 1,024 979 4,095 5,635
Goodwill impairment,
restructuring and unusual
charges 570 12,468
-------- -------- -------- --------
Total operating expenses 5,633 6,552 23,137 47,055
-------- -------- -------- --------
Operating loss (478) (2,557) (1,735) (32,044)
Interest and other (income)
expense, net (148) 222 1,309 1,623
-------- -------- -------- --------
Net loss ($ 330) ($ 2,779) ($ 3,044)($ 33,667)
======== ======== ======== ========
Loss per common share - basic
and diluted ($ 0.01) ($ 0.07) ($ 0.08)($ 0.86)
Weighted average number of
common and common
equivalent shares
outstanding 39,564 39,564 39,564 39,352
Condensed Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)
December 31,
2002 2001
---- ----
Assets:
Cash and cash equivalents $ 2,217 $ 4,342
Accounts receivable, net 6,827 8,029
Inventories, net 8,668 9,081
Other current assets 712 473
-------- --------
Total current assets 18,424 21,925
Non-current assets 9,563 11,974
-------- --------
Total assets $ 27,987 $ 33,899
======== ========
Liabilities and shareholders'
(deficit) equity:
Current liabilities $ 15,885 $ 17,559
Non-current liabilities 14,465 16,027
-------- --------
Total liabilities 30,350 33,586
-------- --------
Shareholders' (deficit) equity (2,363) 313
-------- --------
Total liabilities and
shareholders' (deficit) equity $ 27,987 $ 33,899
======== ========
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Contact:
Chyron Corporation
Michael Wellesley-Wesley, 631/845-2000
mww@chyron.com
or
Jerry Kieliszak, 631/845-2000
jerryk@chyron.com |
